ArcelorMittal Nippon Steel (AMNS) India Limited has reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $470 million for the March 2022 quarter, with a 16.62% growth over the year-ago period.

AMNS India’s crude steel production in the first quarter (Q1) of 2022 or January-March period decreased to 1.7 million tonnes (mt), compared to 1.8 mt in the October-December period in 2021.

On a year-on-year (YoY) basis, the 1.7 mt output was lower compared to the 1.8 mt in 1Q 2021.

The shipments stood at 1.73 mt in the quarter under review, against 1.70 mt in the previous quarter.

ArcelorMittal told the media that it had established a strategic partnership with energy transition Greenko Group in India to develop a round-the-clock renewable energy project of 975 MW nominal capacity.

The project worth $600 million will combine solar and wind power, supported by Greenko’s hydro pumped storage project, to overcome the challenges due to the intermittent nature of wind and solar power generation.

The project will be owned and funded by ArcelorMittal and designed, constructed and operated by Greenko at the renewable energy facilities in Andhra Pradesh. This project might be commissioned by mid-2024.

AMNS India will enter into a 25 years offtake agreement with ArcelorMittal to purchase 250 MW of renewable electricity per annum from the project.

According to a statement, the project provides an attractive return on investment for ArcelorMittal and offers AMNS India lower electricity costs and carbon dioxide emissions.

The joint venture (JV) firm has planned to expand and increase capacity to 14 million tonnes per annum (mtpa) and later to 18 mtpa.

The Thakurani mine of AMNS India has been operating at a 5.5 mtpa capacity since Q1 2021. The second Odisha pellet plant added six mtpa for a total of 20 mtpa of pellet capacity.

The Ghoraburhani-Sagasahi iron ore mine in Odisha will produce 5 mt of high-quality iron ore in 2022, which will increase to 7.2 mtpa gradually.

The company plans to set up a steel plant in Kendrapara. A pre-feasibility study report was submitted to the state government in Q3 2021, and AMNS India is engaging with the government for further studies and clearances.

Last year, AMNS India signed a memorandum of understanding (MoU) with the Odisha government to set up an integrated steel plant of 12 mtpa capacity in Kendrapara.

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Also read: AMNS plans to invest Rs 1 trillion in India to expand operations