Japan to back low-emissions furnace with up to $1.1 billion debt guarantee, Nikkei reports

March 20 (Reuters) - Japan plans to guarantee up to 180 billion yen ($1.14 billion) in loans for a low-emissions furnace of JFE Holdings' steel unit 5411.T, the Nikkei reported on Friday.

• JFE Steel, Japan's second-biggest steel maker and a unit of JFE Holdings, plans to build a high-efficiency electric arc furnace at the Kurashiki facility of its West Japan Works, the report said.

• Loan guarantee comes from the GX Acceleration Agency, a body formed by the Japanese government to help the transition from fossil fuels.

• Subsidies from Japan's Ministry of Economy, Trade and Industry will cover 104.5 billion yen of the total 329.4 billion yen investment, while the remaining investment will come from private-sector loans, corporate bonds and other sources, the report said.

• The guarantee comes as oil and gas prices skyrocket while the war in the Middle East impacts critical energy infrastructure and oil supply, raising the need for Japan to reduce reliance on fossil fuels.

• The furnace is set to be operating as early as fiscal 2028, the Nikkei reported.

($1 = 158.0600 yen)