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Measures Against Global Warming

Global warming is the term used to describe the impact that is resulting from increasing emissions of greenhouse gases, such as carbon dioxide (CO₂) and chlorofluorocarbon substitutes. The Kyoto Protocol came into effect in 2005 and worldwide efforts have been under way to combat the phenomenon. In Japan, a succession of related laws and regulations, especially those intended to inhibit global warming, have been drawn up and various measures implemented. Various industries have also formulated and initiated action plans. The Kobe Steel Group is rationalizing energy use though energy conservation and other means across all of its business activities based on the voluntary action plans for each industry.

Energy Conservation in Production Processes

In fiscal 2008, the Kobe Steel Group as a whole consumed 219PJ (petajoules)of energy. Of this amount, 94.7% was by the Iron and Steel Segment.

Previously, energy consumption had been rationalized at Kobe Steel's production facilities, including its steelworks, through the introduction of the latest energy conservation technologies, such as combustion management, continuous processes, and exhaust heat recovery. As a result, Kobe Steel achieves the world's highest levels of energy efficiency in its production processes. Moving forward, Kobe Steel will raise its energy efficiency to even higher levels, reduce its environmental impact and actively develop new production technologies.

Energy Consumption by Main Businesses (including Group companies)

Energy Use by Segment (including Group companies)

Iron and Steel Sector

After the 1970s oil shocks, energy-saving equipment for as concatenated processes and waste-heat recovery were installed together with other fine-tuned improvements in combustion, heat transfer and so on, so that by 1990, we had achieved energy savings of more than 20%.

Since 1990, equipment for waste-heat recovery has been expanded further and other facilities were made more energy-efficient. Since 2000, high level energy-saving and cutting of greenhouse gas emissions have been achieved by turning wastes into fuel, for example using plastic waste in blast furnaces. We have made further advances in making facilities more energy-efficient, changing the fuel for heating furnaces.

We are also helping other business sectors to save energy and reduce global warming by developing and supplying environment-friendly products such as high strength steel sheet and wire rod for high-strength valve springs, both of which lighten vehicle weight for the automotive industry.


History of Energy-Saving Activities


Production Flows and Main Energy-saving Activities

Production Flows and Main Energy-saving Activities

In fiscal 2008 we launched large-scale energy-saving investments at the Kakogawa and Kobe works, installing energy-efficient power generation equipment. We also made operational improvements, such as lowering the proportion of reductant in blast furnaces.

But in the second half of the year, massive cuts in production meant that operating rates declined at all plants, and furthermore output from furnaces could not be lowered sufficiently to match cuts in production, with the effect that both energy consumption and CO₂ emissions per metric ton of goods produced worsened by about 5%. On the other hand, the effect of cuts in output of over 10% was to reduce overall energy consumption and CO₂ emissions by about 5% over the previous year, resulting in a reduction of 4.8% and 4.7% respectively over 1990 figures.

Adverse economic conditions are continuing in fiscal 2009 but we are maintaining planned energy-saving investments and making operational improvements in various processes to make them suitable for operating at lower rates. With these and other measures to lower specific energy consumption and CO₂ emissions, we are aiming to meet targets based on the voluntary action plan for the Iron and Steel sector.

Many uncertainties remain in future production trends, but even if production volumes recover and it becomes difficult to meet targets with energy-saving measures alone, we will study ways to ensure that we meet our reduction targets, including Kyoto mechanisms.


Trends in energy consumption and specific energy consumption (Approximate figures)

Trends in energy consumption and specific energy consumption (Approximate figures)


Trends in CO₂ emissions and specific CO₂ emissions index (Approximate figures)

Trends in CO<sub />2</sub> emissions and specific CO<sub>2</sub> emissions index (Approximate figures)

Notes: Aggregate figures for the Iron and Steel Sector, including coke production. Based on " Comprehensive Energy Statistics" (Resources and Energy Agency); documents of Calculation Method Study Group for Greenhouse Gas Emissions (Ministry of the Environment)

Fiscal 2007 results published by the Federation of Electric Power Companies of Japan used for fiscal 2008 electricity coefficients.

Aluminum and Copper Company

The Aluminum and Copper Company has been working to save energy in line with voluntary action plans formulated by the Japan Aluminium Association and Japan Copper and Brass Association.

At our three manufacturing bases, the Moka Plant, Chofu Works and Daian Plant, we have been switching from coal, oil and other fuels that release large quantities of CO₂ to natural gas, which releases far less, and increasing waste heat recovery. We will continue with these measures in the future. As a result, specific energy consumption improved by about 4% over the previous year, despite a fall in overall production of about 16%, and CO₂ emissions fell.

Also, the Chofu Works received the 2008 Governor's Commendation from Yamaguchi Prefecture for outstanding efforts to help prevent global warming.

Trends in specific energy consumption and CO₂ emissions (Approximate figures)

Trends in specific energy consumption and CO<sub />2</sub> emissions (Approximate figwes)


Business Associations' Voluntary Action Plans

Business sector (Industrial association)	Targets
Steel (Japan Iron and Steel Federation)	Assuming crude steel production in Japan of 100 million metric tons, to reduce energy consumption in production processes in 2010 to a figure 10% lower than 1990 figure. Should crude steel production grow, to make all possible efforts to reach this target.
Aluminum (Japan Aluminum Association)	To reduce specific energy consumption by 11% of 1995 figure by 2010.
Copper and brass (Japan Copper and Brass Association)	To reduce specific energy consumption in manufacturing by 9.05% of 1995 figure by 2010.
Industrial machinery (Japan Society of Industrial Machinery Manufacturers)	To reduce emissions of CO₂ by 12.2% of 1997 figure by 2010.

Group Companies

At Group companies production processes are being improved, facilities are being upgraded, and measures are being implemented for more efficient energy use.


Examples of Measures Implemented

Group company	Location of plant	Activities
Kobe Special Tube, Co., Ltd.	Shimonoseki, Yamaguchi	Municipal gas supply used to fuel new annealing furnace
Shinko Wire Company, Ltd.	Amagasaki, Hyogo	Energy-saving plant lighting installed; plant lighting switches off automatically with use of skylights
Shinko Metal Products Co., Ltd.	Kitakyushu, Fukuoka	Energy consumption reduced by simplifying annealing process
Kobelco & Material Copper Tube, Ltd.	Hadano, Kanagawa	Automatic air fuel ratio control fitted to melting furnace and other equipment to save energy
Kobelco Eco-Solutions Co., Ltd.	Harima, Kako, Hyogo	Insulating work for firing furnace to save energy

Energy Savings in Logistics

Kobe Steel aims for the most appropriate, rapid transport of raw materials to Japan, as well as delivery of products to customers. Efficiency is being increased in logistics through greater coordination between sectors and switching (model shifting) to means of transport requiring lower energy consumption per volume of cargo transported.

Unloaders in operation at the Shinko Kobe Power Station

Unloaders in operation at the Shinko Kobe Power Station

Unloaders are used to land coal. Since their installation in 2002 unloading efficiency has been constantly improved, and currently they can shift 1,800 metric tons per hour. This represents a 60% improvement since operations began.

Iron and Steel Sector

Efforts have been made to improve the efficient transportation of products by selecting the optimal routes and means of transport and by upgrading information systems such as the shipping allocation system. Modal shifts in means of transport from truck to ship or rail have been pursued since 2003. Coordination with Nippon Steel and Sumitomo Metal Industries has resulted in joint operations in domestic waters and fewer journeys made by empty vessels. Measures are now being taken to boost load efficiency by combined loads in cases where one company alone cannot fill a vessel bound for a distant location. Similar efforts are being directed toward increasing efficiency of shipping operations between logistics companies in the Group. As a result of these measures, in fiscal 2008 97% of transportation of 500 km or more was by ship or rail.

To maximize the benefits of the specialized large iron ore carrier Shinko Maru, that came into service between the Kakogawa and Kobe works in March 2007, measures to increase efficiency in its operation are continuing, including improved loading and unloading.

It remains an important policy for Kobe Steel to increase efficiency of operations still further in all means of transport. For transport by ship, measures include installation of improved infrastructure for loading and unloading. For land transport, efficiency of truck transportation is to be further improved.

The Shinko Maru

Welding Company

The Welding Company is working to transport products jointly with other Group companies, and is also promoting modal shifts in transportation. Currently, from the Saijo Plant in Hiroshima, 100% of goods bound for Hokkaido and Sendai and 82% of goods bound for the Kanto (Greater Tokyo) area have been switched to rail or ship from truck transport.

Aluminum and Copper Company

We are taking further measures to change means of transportation (modal shift).
At the Chofu Works, we use ferries, rail containers or sea containers as far as possible for the longer distance routes to the Kansai, Chubu, Kanto and Tohoku regions. We are working to boost the proportion of goods transported this way by quantifying each the shares of truck, ferry and container transport.

At the Moka Works, some goods bound for Kyushu or Osaka have been switched from trucks to open rail containers. This is a policy measure designed to cut CO₂ and since 2007 has been accredited as a "green transportation partner project", a subsidized project of the New Energy and Industrial Technology Development Organization (NEDO).

At the Daian Plant efforts are being made to increase loading rates by using mixed loads and larger vehicles.

Machinery and Engineering Company

The Harima Plant is taking measures to lessen the environmental impact of the transportation of all-purpose compressors by switching the packaging from wooden crates to heavy-duty cardboard. The wood was already 100% recycled, but the switch to heavy-duty cardboard allows not only material recycling, but also a reduction in weight and therefore a saving in energy needed for transportation. Increasingly, mixed loading and loads combined with other companies' goods on chartered runs are used for transportation. Increasing loading rates reduces the amount of energy used for transportation.

Group Companies

Group companies are taking measures to make transportation more efficient.


Examples of Efforts

Group company	Plant location	Details
Shinko Kohan Kako, Ltd.	Ichikawa, Chiba	Large-sized products are transported by ship rather than truck
Ceratechno Co., Ltd.	Bizen, Okayama	Bricks are imported through to Mizushima port rather than Kobe port to shorten overland transportation.
Tesac Wirerope Co., Ltd.	Kaizuka, Osaka	Increased use of 20 ton trucks and improved loading rates by studying routes and freight lines.
Shinko JFE Industrial Co., Ltd.	Kurayoshi, Tottori	Promoting rail transport for LP gas cylinders.
Shinko Aluminum Wire Co., Ltd.	Sakai, Osaka	Adjusting product shipping timing to improve loading rates.

Kobelco Logistics, Ltd. has set up facilities at the Kakogawa and Kobe works and at the Kansai and Kanto Logistics Centers to supply electricity to shipping. More than 400 ships on domestic routes are using these facilities each month. Ships' generators that run on fuel oil can be closed down, helping to reduce emissions of CO₂, NOx and SOx, and to save energy. Crews also welcome the low noise of electricity provision from land.

Shore power equipment

Supplying electricity to ships from shore