Nippon Steel plans 2GW LNG-fired project at Kyushu Works to replace aging 1GW Tobata Power Station

May 14, 2025
Nippon Steel Kyushu
The new project is expected to replace the aging Tobata Power Station as Kyushu Works Yawata Area’s primary source of power. (Image: Nippon Steel)

Nippon Steel began the environmental impact assessment process for a 2GW LNG-fired power plant at its Kyushu Works Yawata Area in Kitakyushu City.

According to a primary environmental consideration document that was available for public viewing until May 12, 2025, Nippon Steel plans to begin construction in late 2027, with commissioning of the first of the four 500MW combined cycle gas turbines (CCGTs), designated Unit 7, expected around 2031. An early 2040s COD is targeted for the last unit, Unit 10.

In the future, the company plans to begin co-firing with hydrogen or ammonia, aiming for a full switch in the long term.

The power plant is being developed as a replacement for the aging Tobata Power Station operated by a 50:50 joint venture between the steelmaker and Kyushu Electric Power, which is Kyushu Works Yawata Area’s primary source of power.

It currently has five operational units totaling 1GW. Units 2, 5, and 6, with a capacity of 156MW, 110MW, and 149MW, respectively, are expected to be shut down in the 2030s. The 250MW Unit 3 and the 375MW Unit 4 are set to follow in the 2040s. After decommissioning, the units are also expected to be replaced with more efficient generation assets.

Nippon Steel is among Japan’s largest power generators. METI data shows that in January 2025, it generated 632GWh, which placed it 18th place after JERA and the nine former mainland regional monopolies among other companies. According to the steelmaker, in FY2020, it generated 42% of its own power consumption (including 10% through waste heat utilization) directly and 46% through joint ventures.

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