Tata Steel and ABB India have entered into an agreement to explore technology that could help reduce carbon footprint in steel production, according to a BSE filing.
The two companies will focus on system-level assessments of Tata Steel’s manufacturing plants and production facilities to evaluate and co-develop short-term and long-term options for energy efficiency, decarbonisation, and circularity, the filing said.
Tata Steel and ABB will explore energy optimisation through hydrogen as an alternative fuel for upstream processes and energy reduction as well as substitution through fully integrated electrification and digital systems such as ABB Ability eMine and e-Mobility solutions and energy-efficient motors.
“Steel companies know there are opportunities to improve their processes, and Tata Steel is one of the leaders in this movement towards energy efficiency and reduction of carbon footprint,” Vipul Gautam, Group Vice-President, Global Account Executive for Tata Group, ABB, said in the filing.
“World Economic Forum figures anticipate the energy transition will require as much as 3 billion tonnes of metals over the medium term; six times more mineral inputs by 2040 to reach net-zero emissions globally by 2050. ABB is confident in working with our customers and partners to evolve how steelmaking is powered to help reach production and environmental targets,” he was quoted as saying.
Tata Steel has an annual crude steel capacity of 35 million tonnes and this collaboration could see that increase to 40 million tonnes by 2030.
The steel giant said that it is committed to major sustainability targets, including achievement of carbon neutrality by 2045. It has a medium-term target to reduce carbon emissions to less than 2 tonnes of CO₂ per tonne of crude steel in its Indian operations by 2025.
The global steel industry contributes 7 to 9 percent of global fossil fuel CO₂ emissions, according to various sources, including the International Energy Agency (IEA).
Shares of ABB India was trading 0.80 percent higher at Rs 4,476.15 per share at 12:03pm on the NSE on Wednesday, while the shares of Tata Steel were down 2.09 percent to Rs 128.95 each.
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