A joint venture between steelmakers ArcelorMittal and Nippon Steel India Ltd has set out a roadmap targeting a reduction in emissions intensity by 20 percent by 2030, according to a climate action report released by both companies on February, outlining immediate actions to accelerate and decarbonise India’s development.
The strategy looks to bolstering renewable energy to meet 100% of grid electricity needs. boost the recycling of scrap steel and driving operational efficiencies with new technology improvements.
The report sets out recommendations for enabling policies that can unlock industry-wide progress including tax incentives, new norms for FDI, a green grid and more.
"Without a transformation in steel production, research indicates rising demand could lead to a 200% increase in sector emissions by 2050," said Aditya Mittal, Chairman of JV ArcelorMittal Nippon Steel India (AM/NS).
The JV aims to meet over 20% of flagship Hazira plant’s electricity needs by the end of 2024, cutting AM/NS India’s carbon emissions by 1.5 million tonnes each year. It also aims to raise scrap utilization from 3-5% to ~10% by 2030 and has set out plans to establish several steel scrap processing centres across the country.
Meanwhile, in a bid to avail green hydrogen, the companies plan to pursue pilot programmes to further explore utilisation of low-carbon gasses at
production processes. Also, the JV is looking to develop long-term strategic collaborations with the world’s leading energy companies to assess hydrogen deployment and secure low carbon gas supply.
Last week, The Ministry of New and Renewable Energy said that it will implement pilot projects using green hydrogen to replace fossil fuels in steel production in a step towards sustainable and cleaner energy practices in the sector. MNRE has laid out guidelines for such pilot projects.
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