JSW Steel – Decarbonising Steelmaking with a Defined Roadmap

Advancing Sustainability Agenda

Through strategic investments, advanced technologies, and a clear commitment to reducing carbon emissions, JSW Steel is leading the way in green steel production.

NEW DELHI (India CSR): JSW Steel, a pioneering force in the steel industry, is dedicated to advancing sustainability through targeted CO₂ emission reductions and innovative technologies. The company aims for a 42% reduction in CO₂ emissions intensity by 2030 and aspires to achieve net neutral carbon emissions by 2050. This ambitious vision is supported by a robust roadmap and a series of strategic initiatives designed to transform steelmaking into a cleaner, greener process.

Commitment to Sustainability

JSW Steel’s sustainability initiatives are comprehensive and forward-thinking. The company plans to reduce CO₂ emissions intensity to 1.95 tonnes per tonne of crude steel by 2030. By incorporating advanced technologies like green hydrogen, syngas utilization, and carbon capture, utilization, and storage (CCUS), JSW Steel is positioning itself as a leader in sustainable steelmaking.

These efforts have earned the company global recognition, including inclusion in the DJSI World Index and the DJSI Emerging Markets Index. The SEED (Sustainable Energy Environment and Decarbonisation) program, a flagship decarbonisation initiative, has been awarded the Global Energy Transition Changemaker award at COP 28.

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“Our sustainability efforts, meanwhile, continued to garner global recognition, with Leadership ratings from CDP for climate change and for water. We were included in the Dow Jones World and Emerging Markets Sustainability Indices. We were recognised as a Sustainability Champion by the World Steel Association for the sixth consecutive year”, Sajjan Jindal, Chairman of JSW Steel Limited said in Annual Report 2023-24.

$1 Billion Investment to Achieve Net Neutral Carbon Emissions by 2050

JSW Steel also plans to invest $1 billion across its operations to reduce carbon emissions, aiming to become net neutral by 2050. While India has committed to achieving net neutral carbon emissions by 2070, JSW Steel is setting an ambitious target to meet this goal 20 years earlier.

In its first phase, by 2030, JSW Steel intends to cut its emissions to 1.95 tonnes of CO₂ for every tonne of steel produced, down from the current 2.36 tonnes of CO₂ per tonne of steel.

In its second phase, by 2050, the company aims to achieve net neutrality. This will be accomplished through a combination of green hydrogen usage and carbon capture, utilization, and storage (CCUS) technologies.

“In January 2024, we announced our commitment to achieving net neutrality in carbon emissions by 2050, significantly ahead of India’s Net Zero commitments by 2070, through both short-term and long-term initiatives. We recently published our first Climate Action Report, which outlines our progress towards decarbonisation and future endeavours,” Sajjan Jindal, said.

Steel’s Role in Nation-Building

Steel is integral to nation-building and significantly contributes to industrial CO₂ emissions, accounting for 12% of India’s total energy infrastructure emissions. As India accelerates its development, JSW Steel is committed to pioneering clean and green steel production. The company’s goal to achieve net neutral carbon emissions by 2050, ahead of India’s 2070 commitment, underscores its dedication to sustainability.

A planned investment of US$1 billion across operations and the issuance of US$500 million in Sustainability Linked Bonds highlights JSW Steel’s proactive approach.

“At JSW Steel, we are in a ‘mission mode’ to play a key role in realising the full potential of the India growth story. I remain very confident about the future prospects of the steel industry in India.Our commitment to nation building also extends to realising our dreams of seeing the nation as a sporting power. As the sponsor of Team India, our efforts are directed towards creating champions, proudly standing on the podium at the Paris Olympics in 2024.” Sajjan Jindal, Chairman of JSW Steel Limited said.

Table 1: Emission Reduction Targets and Achievements

Vijayanagar: A Model of Sustainable Development

From a greenfield project on barren land to India’s largest single-location integrated steel plant, Vijayanagar’s journey exemplifies JSW Steel’s commitment to sustainability.

With a production capacity of 12.5 MTPA and an expansive green cover of 18 lakh trees across 7,800 acres, the Vijayanagar plant reflects the company’s focus on technology, innovation, and environmental stewardship.

JSW Steel aspires to expand the plant’s capacity to 25 MTPA, aiming to make it the world’s largest steel manufacturing complex.

Table 2: Vijayanagar Plant Highlights

Steel at the Heart of Progress

JSW Steel believes that steel is crucial to economic progress and prosperity due to its versatility and infinite recyclability. The company’s high-quality steel products are vital for building India’s critical infrastructure, from high-speed rail networks and highways to nuclear power plants and renewable energy projects.

JSW Steel also supports the energy sector, providing materials for solar and wind energy projects, thus aiding India’s transition to sustainable energy sources.

Strategic Levers for Decarbonisation

To achieve its 2030 and 2050 targets, JSW Steel has identified key strategic levers:

Ensuring Energy Efficiency

The company is focusing on improving energy efficiency across its operations, utilizing renewable power sources, and increasing the use of steel scrap. Pilot projects for deep decarbonisation technologies are being implemented to enhance process efficiencies.

Table 3: Strategic Levers for Decarbonisation

Focusing on Energy Transition

JSW Steel is actively transitioning to renewable energy, with planned additions of 600 MW of solar and wind energy combined with 320 MWh of battery storage. This will bring the total renewable energy procurement to over 1.6 GW. The company also plans to establish a green steel manufacturing facility at one of its existing sites, initially at 2 MTPA and expandable to 4 MTPA, catering to global demand for green steel.

Alternative Fuel Sources

The utilization of alternative fuel sources, such as syngas and TGR in blast furnaces (carbon circularity), is a key part of JSW Steel’s strategy. The company is also exploring the commercial deployment of green hydrogen for steelmaking and the use of scrap-based electric arc furnaces.

Long-Term Vision and Recognition

JSW Steel’s decarbonisation strategy aligns with the International Energy Agency’s (IEA) Iron and Steel Technology Roadmap (2020), supporting the Paris Agreement’s objectives to limit global temperature rise. The company aims for a derived emissions intensity of zero by 2050, covering both direct and indirect emissions.

SEED Initiative: Leading the Way

Project SEED, initially launched at Vijayanagar and extended to Dolvi, is at the forefront of JSW Steel’s decarbonisation efforts. Recognized as a top Global Energy Transition Changemaker at COP 28, SEED exemplifies the company’s commitment to sustainability.

Charting a Greener Path

In January 2024, JSW Steel reaffirmed its commitment to achieving net neutrality in carbon emissions by 2050, significantly ahead of India’s 2070 target. The company’s first Climate Action Report details its progress and future plans, including obtaining Environmental Product Declarations (EPD) for all finished products and achieving GreenPro certification for Auto Steel and TMT.

Table 4: Decarbonisation Goals and Strategic Levers

As the JSW Steel continues to receive global recognition for its efforts, it remains steadfast in its mission to build a sustainable future for the steel industry and beyond.

(India CSR)