Nippon Steel is building a huge electric arc furnace at its Yawata works in Japan and plans to power it with its own gas-fired plant fed by imported LNG. A report by think tank Transition Asia warns this exposes the steelmaker to volatile gas prices, with electricity costs that could more than double in a bad year and add about JPY 16 billion, and to supply risk, since its fuel storage covers only 11 days. Japan's Environment Ministry has also warned against locking in fossil fuels and asked the company to consider limits or closure if climate targets cannot be met. The report suggests grid power backed by renewables, which could be cleaner than the gas plant by 2030.