JSW Steel to spend over $1 billion for reducing emissions

17 Feb 2022 CW Team

Steel manufacturing major JSW Steel is planning to invest over $1 billion and increase the utilisation of natural gas as it focuses on cutting emissions.

The steel sector is one of the largest polluting industries in the country. Due to the target of net-zero by 2070, the companies are operating under pressure to reduce their emissions and opt for cleaner fuel options.

JSW Steel has set aside Rs 10,000 crore or $1.3 billion for decarbonising. This includes using solar power for energy and scrap. The company is in talks with GAIL India for the natural gas supply for its biggest mill.

The talks are for long-term contracts for the purchase of gas from GAIL for their Vijayanagar plant set in Karnataka. The mill is also planning to also utilise gas in the future in the blast furnace in Dolvi.

The change to gas will indicate a big transition in India as it is largely dependent on coal and oil for energy. The change will be brought by the Prime Minister administration’s push for a gas-based economy. The plans are to double the share of fuel in the energy mix by 2030.

The steel mills in India are exploring different options for the reduction of their dependence on fossil-based fuels and initiating the use of greener products.

JSW is trying to reduce carbon dioxide emissions from 2.52 tonne to 1.95 tonne per tonne of steel production by the end of 2030.

Decarbonisation demands huge capital investment while increasing the operating cost.

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