Zürich, Switzerland: Yamato Kogyo, Co., Ltd. (Yamato Kogyo), one of the Japan’s top steel companies, has joined Emerald’s industrial transformation fund as a limited partner (LP). The engagement aims to help Yamato Kogyo meet its decarbonization targets and other environmental goals such as recycling. It also aims to enhance the productivity of its core business in electric arc furnace operations, as well as exploring new business areas. Innovation that can improve transparency, efficiency and unblock operational bottlenecks could be an important weapon in the broader sustainability and climate battle.
Himeji, Japan-based Yamato Kogyo makes a wide variety of section steel products for various social infrastructure such as buildings, plants and bridges. As part of Japan’s overall ambitions to become net zero by 2050, Yamato Kogyo also aims to zero-out its greenhouse gas footprint by then. Several interim targets – including a 38% drop in emissions by 2025 compared to 2013 levels and a 46% reduction by 2030 – increase the urgency of the company’s climate ambitions.
Much of this will be accomplished via making steel in furnaces powered by renewable electricity instead of so-called blast furnaces, typically powered by coal. Yamato Kogyo is already ahead of the curve, rolling out state-of-the-art equipment that cuts emissions by 83% compared with blast furnaces. More will need to be done, however. The global steel industry is responsible for roughly 7% of global emissions and several aspects of steelmaking will need to change to meet climate targets, including at Yamato Kogyo. Potential steps include replacing coal with bio-based feedstock or hydrogen produced from green sources, and/or employing carbon capture and storage.
This is where Emerald comes in. Its long history as a clean-tech venture-capital pioneer and rigorous scientific and technical expertise make it a partner of choice for industrial firms seeking support for their digital and sustainability transformations. Yamato Kogyo is the first steel company to join Emerald as an LP. Emerald’s prowess in sourcing high-quality deal flow for its partners will be very beneficial for its sustainable future.