To reduce its carbon footprint, JSW Steel has earmarked a sum of Rs 10,000 crore to increase the use of renewable energy to replace thermal power and other green initiatives, its Chairman Sajjan Jindal said. Various steel makers use coal to generate thermal power for captive use.
According to a Ministry of Steel document, globally, the iron and steel industry accounts for around 8 percent of total carbon dioxide (CO2) emissions.
In India, it contributes 12 percent to the total CO2 emissions. Thus, the Indian steel industry needs to reduce its emissions substantially because of the commitments made at the COP26 climate change conference.
Sajjan Jindal, Chairman, JSW Steel, said the company has earmarked ₹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.
“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 CO 2 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.
He further said the expansion of the company’s Vijayanagar plant from 12 MTPA to 19.5 MTPA is underway, and CAPEX cost is well below global benchmarks.
The company’s ongoing expansion projects are oriented toward producing steel with higher use of renewable power, best-in-class digitalization to achieve operational efficiency, and the best available technologies to reduce associated CO2 emissions.
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.