MUMBAI: JSW Steel plans to invest $1 billion to reduce carbon emissions and achieve net neutrality by 2050. India aims to be net neutral by 2070.
Phase One by 2030
By 2030, JSW Steel, India’s largest steel producer, intends to reduce emissions to 1.95 tonnes of CO2 per tonne of steel, down from the current 2.36 tonnes.
Phase Two by 2050
By 2050, the company aims to be net neutral by using green hydrogen and carbon capture, utilization, and storage.
Significance of Decarbonization
The steel industry is responsible for nearly 20% of industrial energy use in India and about 12% of total energy-related carbon emissions. Sajjan Jindal, the chairman and managing director, stated in the company’s first climate action report that decarbonized steel is crucial for India’s green future and that India must address the challenge of decarbonization directly.
Planned Measures
JSW Steel will employ various strategies, including improving processes and energy efficiency, transitioning to renewable energy sources, using better quality raw materials, and adopting alternative fuels.
Production Capacity and Capital Expenditure
JSW Steel aims to reach a production capacity of 51.5 million tonnes by 2030-31 and over 43 million tonnes by September 2027. The company plans to spend ₹64,434 crore on capital expenditure over the next three years. This expansion will cost less than $500 per tonne, compared to the global benchmark of $1,000 per tonne for blast furnace-based capacities.
Current and Future Investments
Of the total capital expenditure, over ₹37,000 crore has been carried forward, with new approvals amounting to ₹27,340 crore. A significant portion, ₹19,125 crore, will be used to expand capacity at Dolvi by five million tonnes, bringing its total capacity to 15 million tonnes.
Strategic Location and Completion
Dolvi’s strategic location near Western India markets is expected to be beneficial. The project is scheduled for completion by September 2027.
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