Sajjan Jindal-led JSW Steel, signed a memorandum of understanding with Germany-based engineering and technology company SMS group to explore multiple cutting-edge solutions and R&D projects to reduce carbon emissions in its iron and steelmaking operations in India.
The steelmaker also plans to expand capacity to 37 mtpa from 27 mtpa in a phased manner
JSW Steel plans to invest Rs. 10,000 crores to reduce carbon emissions across operations through various initiatives. It was the first steel company in the world to raise $1 billion through the issue of two US dollar-denominated Sustainability Linked Bonds of 5.5 years and 10.5 years.
Sajjan Jindal, Chairman, of JSW Steel, said the company has earmarked Rs. 10,000 crores for investments to reduce carbon emissions through various initiatives, such as increasing the use of renewable energy to replace thermal power, reducing fuel rate through improved raw material quality through beneficiation, and deploying best available technologies.
Reducing CO2 emissions by 42 percent by 2030
“We have contracted for 1 GW of renewable energy, of which 225 MW became operational in April and the balance will come on stream in phases. We have committed to reducing our CO2 emissions intensity by 42 percent by 2030, compared to the base year of 2005, aligned with India’s Nationally Determined Contribution,” he said in the company’s annual report.
Terming the export duty of 15 per cent levied in May as a short-term headwind, Jindal said the industry would continue to engage with the government on this matter and believes that the duties would be withdrawn once inflation moderates.
India is a cost-competitive exporter of steel and has an opportunity to take on a larger role in the global steel trade. The government continues to encourage manufacturing-led growth and merchandise exports from India. JSW Steel is expanding capacity in a phased manner to 37 mtpa from 27 mtpa to tap the opportunities in domestic and global markets, he said.
The financial year gone by was a mixed bag, with most major economies rebounding from the negative effects of Covid. However, commodity price volatility, soaring energy prices, lingering supply chain challenges and geopolitical conflicts have made the recovery increasingly fragile. Although global growth expectations have moderated recently, the structural demand drivers for commodities such as steel remain intact, said Jindal.
The company received approval for 25 different grades of Advanced High Strength Automotive Steel from auto OEMs, including high-strength structural steel for passenger and commercial vehicle applications and a special alloy steel grade with better specific steel purity qualities.
