Measures Against Global Warming

Promoting energy savings in every aspect of our business activities Reducing greenhouse gas emissions in partnership with industry

 

In recent years, addressing the problem of global warming has been growing in importance. The Kobe Steel Group is tackling this issue by moving forward on R&D and rationalizing energy use through energy conservation, among other steps taken across its various business activities. The Group is working to achieve the goals of each industry's voluntary action plans as well as to further conserve energy and reduce CO2 emissions.

Energy Conservation in Production Processes

In fiscal 2009, the Kobe Steel Group as a whole consumed 209PJ (petajoules) of energy. Of this amount, approximately 95% was used by the Iron and Steel Segment. Kobe Steel has implemented operational measures at its plants and other production facilities-including the introduction of such state-of-the-art energy conservation technologies as the deployment of highly efficient equipment, continuous processes and exhaust heat recovery-and has also thoroughly implemented combustion and exhaust heat management. As a result, Kobe Steel's business segments achieve the world's highest energy efficiency levels. Moving forward, Kobe Steel will introduce increasingly sophisticated energy conservation technologies and further improve its operations.

Energy Use by Segment (including Group companies)

Iron and Steel Sector

After the oil crises of the 1970s, we continued to promote energy savings through initiatives such as continuous and shortened processes and more effective energy usage through measures such as the installation of waste-heat recovery facilities all the way through to the 1990s. Since 2000, we continued with initiatives such as expanding waste-heat recovery facilities and increasing efficiency and have been taking steps to effectively harness waste resources. As a result, we have achieved an energy saving of more than 30% compared with figures for the early 1970s, even in spite of increases in energy consumption for purposes such as adding value to our products and stepping up environmental measures. During fiscal 2009, both energy consumption and CO2 emissions fell by approximately 7% year on year as a result of reduced production, with CO2 emissions down by 12% compared with fiscal 1990 levels. In spite of a marginal year on year increase due to significantly reduced production, energy consumption and CO2 emissions per metric ton of goods produced have also improved by approximately 12% compared to fiscal 1990 levels. Although energy consumption and CO2 emissions are likely to increase due to recovering production from fiscal 2010 onwards, we will nonetheless make every effort to meet our targets through initiatives such as improving process-specific operations and installing high-efficiency gas turbines at the Kakogawa Works, whilst also taking into account the bigger picture and factors such as the Kyoto mechanisms.

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

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

Notes:

Aggregate figures for the Iron and Steel Sector, including coke production. Approximate figures based on Comprehensive Energy Statistics (calorific values) and National Greenhouse Gas Inventories (emission coefficients) Fiscal 2008 emission coefficient used for fiscal 2009 due to nondisclosure of fiscal 2009 coefficient for purchased electricity

Aluminum and Copper Company

At the Aluminum and Copper Company's Moka Plant, Chofu Works and Daian Plant manufacturing bases, we are in the process of gradually switching fuels from oil, LPG and other oil-based fuels to natural gas. In parallel with this process, we are also taking steps such as improving the efficiency of combustion facilities and increasing waste-heat recovery. In fiscal 2009, CO2 emissions fell by more than 10% compared to the previous year due to significantly reduced production. Energy consumption per metric ton of goods produced on the other hand was seriously affected by reduced production and increased by approximately 3%. We will continue to take steps such as promoting alternative fuels, improving combustion efficiency and fitting inverters to electric motors in order to keep on reducing specific energy consumption in fiscal 2010 and beyond.

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

Machinery and Engineering Company

The Machinery and Engineering Company has long since been committed to improving the efficiency of production facilities and improving energy efficiency through increased productivity. In spite of an increase in production, particularly energy-saving compressors, heat pumps and oil refining pressure vessels, we nonetheless managed to keep CO2 emissions at around the same level year on year through production efficiency initiatives and other measures. Although emissions were up slightly compared to fiscal 1997 (base year), CO2 emissions per unit of sales have improved by more than 30%. We will continue to improve production efficiency and increase the efficiency of individual machinery, air conditioning systems and other facilities in order to further reduce energy consumption and CO2 emissions in the future.

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

Welding Company

As a result of energy-saving initiatives and improved efficiency at individual plants, the Welding Company has reduced CO2 emissions by more than 30% compared to fiscal 1990 levels. CO2 emissions also fell in fiscal 2009 due to significantly reduced production. Although production is expected to recover from fiscal 2010 onwards, we will continue work on saving energy in the future through specific operational measures such as reviewing compressed air and hot air loss within our plants, upgrading air conditioning systems and reviewing operating practices.

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

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 fiscal 2010 to a figure 10% lower than the fiscal 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% from the fiscal 1995 figure by fiscal 2010. Copper and brass (Japan Copper and Brass Association) To reduce average specific energy consumption by an average of 9.05% compared to fiscal 1995 levels from fiscal 2008 to 2012 Industrial machinery (Japan Society of Industrial Machinery Manufacturers) To reduce emissions of CO2 by 12.2% from the 1997 figure by fiscal 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 Examples of Measures Implemented Shinko Kenzai, Ltd. Amagasaki, Hyogo Saving energy by reviewing chemical solution heating methods (switching from corrugated tubes to installing plate heaters) Shinko Wire Company, Ltd. Kakogawa, Hyogo Saving energy by fitting inverters to motors and implementing heat control measures in compressor rooms Kobe Special Tube, Co., Ltd. Shimonoseki, Yamaguchi Saving energy by switching fuels for heat treatment furnaces and installing blowers for some of the compressed air Upgrading to increased efficiency of air conditioning systems Ceratechno Co., Ltd. Bizen, Okayama Fitting inverters to hydraulic pumps and upgrading to energy-saving lighting Tesac Wirerope Co., Ltd. Kaizuka, Osaka Fitting inverters to main motors, upgrading compressors and turning off boilers on days off Nippon Koshuha Steel Co., Ltd. Imizu, Toyama Upgrading bloom reheating furnace (saving energy by optimizing capacity and using regenerative burners) Upgrading to energy-saving plant lighting and fitting heat pumps to hot-water boilers Shinko Kobe Power Inc. Kobe, Hyogo Optimizing usage of seawater in order to save energy from pumps and maintaining efficiency by cleaning desulfurization fans Shinko Actec Co., Ltd. Toyooka, Hyogo Fitting inverters to pumps, installing energy-saving lighting and switching off lights when not in use Kobe Welding Wire Co., Ltd. Fukuchiyama, Kyoto Reviewing heating methods for inspection heaters and switching to LED night-lights Sun Aluminium Industries, Ltd. Chiba, Chiba Installing compressors fitted with inverters and upgrading to energy-saving air conditioning systems Shinko Metal Products Co., Ltd. Kitakyushu, Fukuoka Reducing stoppages of bright annealing furnace and enabling intermittent operation of hydraulic pump for drawing machine Shinko-North Co., Ltd. Kasumigaura, Ibaraki Reviewing compressor pressure settings and reducing unnecessary lights or switching off lighting when not in use Shinko Leadmikk, Ltd. Kitakyushu, Fukuoka Increasing efficiency of air conditioning systems, using heat barrier films and switching to energy-saving lighting Kobelco & Material Copper Tube, Ltd. Hadano, Kanagawa Operating hydraulic units intermittently and fitting inverters to water supply pumps Kobelco Construction Machinery Co., Ltd. Hiroshima, Hiroshima Upgrading to energy-saving ceiling lights and improving air leaks from compressors Japan Superconductor Technology, Inc. Kitakyushu, Fukuoka Reviewing electric furnace load cycle and installing energy-saving compressors and air conditioning systems Kobelco Eco-Solutions Co., Ltd. Kobe, Hyogo Kako, Hyogo Upgrading to energy saving air conditioning systems Shinko Industrial Co.,Ltd. Kurayoshi, Tottori Using exhaust gas from annealing furnace

Energy Savings in Logistics

In addition to energy-saving initiatives and measures to combat global warming within manufacturing sectors, we also continue to systematically implement energy-saving initiatives as part of our logistic operations, including the transporting of raw materials from all over the world, in-house shipments, and shipping products. Other initiatives include using eco-friendly commercial vehicles and encouraging employees to commute to work via public transport.

An open-top container being used to ship aluminum coils

Iron and Steel Sector

In partnership with raw material and product distribution subsidiary Kobelco Logistics Ltd., the Iron and Steel Sector continually strives to optimize product shipping routes and methods and upgrade shipping allocation and other logistic information systems in an effort to transport products as efficiently as possible. When shipping products over long distances, we use sea or rail as a rule and try to maintain organized shipping wherever possible so as to minimize urgent transportation by truck and promote modal shift. In conjunction with Nippon Steel Corporation and Sumitomo Metal Industries, Ltd., we run joint operations in domestic waters in order to reduce the number of journeys and are also working to increase load efficiency by carrying combined loads to distant locations. As a result of such initiatives, 97% of goods transported over distances of 500km or more during fiscal 2009 were transported by sea or rail. We will continue to promote modal shift and improve load efficiency in the future in order to ensure that items are shipped as efficiently as possible.

Aluminum and Copper Company

The Aluminum and Copper Company is actively promoting modal shift in terms of product shipments. Having been accredited as a Green Transportation Partner Project subsidized by the New Energy and Industrial Technology Development Organization (NEDO) in fiscal 2007, the Moka Works continues to expand container transportation and has switched modes of transport from trucks to open rail containers for selected products shipped to Kyushu and Osaka. At the Chofu Works, we are increasingly using ferries and rail containers to ship items by separating only freight pallets from trailers on longer distance routes, such as to the Kansai, Chubu and Kanto regions instead of trailers, in an effort to increase the rate of modal shift. Elsewhere, we are continuing to focus on improving load efficiency by combining loads for truck shipments at the Daian Plant and all other premises and on increasing transport efficiency by using larger vehicles.

Machinery and Engineering Company

In addition to existing modal shift initiatives involving shipping large products by rail or sea, we have also increased the load efficiency of shipping by truck, by using mixed loads and combining loads on chartered runs, in an effort to save energy as part of our logistics operations. At the Harima Plant meanwhile, we continue to recycle cardboard packaging so as to reduce environmental impact.

Welding Company

The Welding Company continues to promote modal shift through initiatives such as shipping products to distant locations via rail instead of truck. The Company has also made improvements such as advising drivers of company vehicles and other vehicles entering its premises to turn off their engines when stopping.

Group companies

Group companies are taking measures to make transportation more efficient.

Examples of Measures Implemented

Group company Location of plant Examples of Measures Implemented Shinko Wire Company, Ltd. Kakogawa, Hyogo Promoting modal shift for shipping to distant locations Using larger vehicles and increasing loading ratios (using outside warehouses, etc.) Kobe Special Tube, Co., Ltd. Shimonoseki, Yamaguchi Reviewing shipping ports for export routes and implementing combined loading for trucks bound for distant locations Shinko Bolt, Ltd. Ichikawa, Chiba Increasing loading ratios through joint shipments and looking into using JR Freight containers Ceratechno Co., Ltd. Bizen, Okayama Reviewing logistics bases near plants and taking delivery of raw materials in containers Tesac Wirerope Co., Ltd. Kaizuka, Osaka Monitoring shipment activity, increasing percentage of large trucks and improving loading ratios Nippon Koshuha Steel Co., Ltd. Imizu, Toyama Discontinuing selected small quantity shipments, advising truck drivers to turn off engines when stopping Shinko Actec Co., Ltd. Toyooka, Hyogo Switching to export shipping ports nearer plants and reviewing selected in-house logistics operations (switching from forklift trucks to trolleys) Sun Aluminium Industries, Ltd. Chiba, Chiba Allocating delivery days to individual users and combining shipments Shinko Metal Products Co., Ltd. Kitakyushu, Fukuoka Combining shipments on semitrailers so as to transport products by ferry and reducing frequency of small shipments Shinko Aluminum Wire Co., Ltd. Sakai, Osaka Combining and adjusting shipments in order to increase transport efficiency Kobelco & Material Copper Tube, Ltd. Hadano, Kanagawa Increasing loading rates through consolidated warehousing, etc. Shinko Engineering Co., Ltd. Ogaki, Gifu Increasing loading rates by shipping products according to destination and selecting appropriate truck sizes Kobelco Research Institute, Inc. Takasago, Hyogo Localizing final processes in order to ship semi-finished goods and reduce shipping weights Kobelco Construction Machinery Co., Ltd. Hiroshima, Hiroshima Shipping replacement parts by rail and equipping trucks with digital tachometers Kobelco Cranes Co., Ltd. Akashi, Hyogo Expanding modal shift of product shipments and replacing commercial vehicles with hybrid models Kobelco Logistics, Ltd. Kakogawa, Kobe, Hyogo See below

Kobelco Logistics Ltd. is working to reduce fuel consumption by reducing ship turnaround times, through initiatives such as keeping demurrage times to a minimum and reducing loading and unloading times at the Kakogawa Works and Kobe Works. It has also installed facilities to supply waiting ships with electricity (land power facilities) at its Kansai and Kanto logistics centers, as well as at the two aforementioned works. This enables ships' onboard oil-powered generators to be shut down, which helps save energy and reduce NOx and SOx emissions.

Shore power equipment Supplying electricity to ships from shore