The Top 5: Indian Steel Makers And Their Green Plans

India stands tall among the world’s leading steel-producing nations. Thanks to rapid infrastructure development, steel demand has soared, making the Indian steel industry a crucial player in the global market. However, as the world grapples with environmental challenges and the need for sustainable practices, India’s steel producers are stepping up with their green plans to drive change and bring down emissions from one of the most carbon-intensive industries.

The steel industry accounts for roughly 7 per cent of global CO2 emissions. Thus, the steel industry becomes critically important from a sustainable development perspective as well. Across the globe, steel producers are embracing climate change objectives and implementing eco-friendly initiatives to reduce the net carbon emissions of the industry. This commitment to sustainability is shared by leading Indian steel producers as well.

Based on the total steel production capacities, we look at the top 5 Indian firms and their green plans.

#1 Tata Steel

Steel Production Capacity: 35 MnTPA

Tata Steel Limited, with a consolidated turnover of over US $32 billion in the financial year ending March 31, 2023, is the largest steel producer in India and one of the largest in the world with an annual crude steel production capacity of 35 MnTPA.

In a global market, the firm is accountable to multiple stakeholders, and is pushing to clean up with a goal of achieving Net Zero Carbon by 2045, Net Zero Water consumption by 2030, and improving Ambient Air Quality and No Net loss in Biodiversity by 2030. The firm aspires to achieve a CO2 emission intensity of less than 2 tCO2/tcs by 2025 and less than 1.8 tCO2/tonne of crude steel (tcs) by 2030.

To reduce its operational emissions, Tata Steel recently initiated a trial for injecting a large quantity of hydrogen into one of its blast furnaces at Jamshedpur. For its efforts, Tata Steel is recognised by Worldsteel as a Sustainability champion for the sixth time in a row and by World Economic Forum as Global Diversity, Equity & Inclusion Lighthouse.

As a short-term strategy, Tata Steel is focused on shifts in business models. It has entered Steel Recycling Business as a part of a circular economy for steel. Having already commissioned 0.5 MnTPA scrap processing unit, more such units across different regions are in the pipeline. In addition, the firm is also increasing its share of renewable energy generation. It was recently in the news for awarding one of the biggest tenders for RTC (round the clock) RE in the private industrial segment for 966 MW to group firm TPREL (part of Tata Power).

As a part of the medium-term green plan, the firm is focussed on capitalising circularity which includes capacity addition in the country using the scrap Electric Arc Furnace (EAF) route. Further, it is also upscaling pilots of CCU and Hydrogen based steelmaking in India.

#2 SAIL

Capacity:18.29 MnTPA

The state-run Steel Authority of India Ltd (SAIL) saw its crude steel production jump to an all-time high of 18.29 million tonnes in FY 2022-23. The decarbonisation strategy of SAIL is broadly classified into three distinct zones. Phase-I, (MODEX) programme started in 2008 which saw an array of energy-saving clean technologies getting introduced and resulted in achieving 19 per cent CO2 emission reduction during 2021-22 from 2005 level.

In phase II, SAIL hopes to achieve carbon abatement through the implementation of energy-efficient technologies in future expansion as per its Vision 2030. Post-2030, deep decarbonisation is expected at SAIL on course to achieve carbon neutrality by 2070. SAIL aims to achieve this through a gradual shift to alternate steel-making, adoption & propagation of Hydrogen Steel making, availing full renewable energy generation potential and wide coverage of Carbon Capture Utilisation and Storage across its operations.

SAIL has been a relative laggard when it comes to shifting to renewable energy, a trend common among most PSU’s in the metals sector. In the case of SAIL, having key plants in Eastern India has not helped, as those regions have ready access to pithead coal and hence, cheaper thermal power. But with the tide turning decisively towards renewables, expect some announcements from this PSU giant soon in the space as green open access rules make it viable to source power from other regions for its key large plants in Eastern India.

#3 JSW

Capacity: 28.5 MnTPA (in India and USA)

JSW Steel is one of India’s leading integrated steel companies with a capacity of 28.5 MTPA in India and the USA (including capacities under joint control). For the full FY22-23, JSW Steel’s crude steel production in India was 23.62 million tonnes. The Company’s manufacturing unit in Vijayanagar, Karnataka is the largest single-location steel-producing facility in India with a capacity of 12 MTPA. Further, the firm aims to expand its total capacity to 38.5 MnTPA by FY25.

JSW Group is transforming from a major producer of “dirty steel” to a diversified entity focusing on renewables and green energy. Electric mobility is one aspect of this shift. They are committed to decarbonizing their steel business and expanding renewable energy capacity. JSW Group has an ambitious target of reducing its carbon emission by 42 per cent by 2029-30 versus the base year 2005 and becoming carbon neutral by 2050 or before.

Earlier this year JSW Steel partnered with US-based Boston Consulting Group (BCG) to meet its decarbonization goals by applying digital and analytics tools to track, measure, simulate and enhance the company’s environmental performance. JSW Energy has plans for green hydrogen. As per media reports, JSW Energy is planning to set up a green hydrogen plant in Karnataka with a capacity of 3,800 tonnes. It is also signing a seven-year contract with JSW Steel, from the same conglomerate, for supplying green hydrogen and green oxygen to produce green steel.

Recently, JSW Energy has signed a power purchase agreement with Solar Energy Corporation of India Ltd (SECI) for wind projects totalling 300 MW and located in Maharashtra, expected to be commissioned in next 2 years.

#4 Essar Steel

Capacity: 10 MnTPA

Essar Steel has fully integrated operations that span the entire value chain of steel making, from mining to retail, and a total production capacity of 10 MnTPA. Essar is at the forefront of the decarbonization of the steel industry. Its green plans are put forth by newly formed EET.

Earlier this year, Essar Group formed Essar Energy Transition (EET). EET plans to invest a total of US$3.6 billion in developing a range of low-carbon energy transition projects over the next five years, of which US $1.2 billion will be invested in India and the rest in the UK. EET Future Energy is developing 1 GW of green ammonia in India, targeted at UK and international markets.

Other sustainability investments planned by the Essar Group beyond EET include the creation of an LNG value chain in India, including LNG truck manufacturing and LNG fuel stations, and setting up a pellet plant in Odisha, in eastern India.

#5 Jindal Steel and Power

Capacity: 9.6 MnTPA

Jindal Steel and Power (JSP) has a dominant presence in the steel, power, mining and infrastructure sectors. JSP looks to raise its installed production capacity more than fivefold to 50 million tonnes per annum by 2030-31 from the existing 9 MnTPA at an investment of around Rs 2 trillion.

Like many others, JSP green plans include a target of Net Zero carbon emissions by 2035. The firm’s green plans include cutting down emissions from its operations by substituting renewable energy. Furthermore, the company has set up a coal gasification technology at the Angul facility to reduce carbon emissions and aims to reduce carbon emissions below 2.0 tonnes per tcs by 2030.

As a part of its green plans, the firm signed an agreement with clean energy player Greenko for the supply of 1,000 MW of green power for its steel-making operations at Angul, Odisha.