JSW Steel has announced a robust $1 billion investment across its operations, aiming to significantly reduce carbon emissions and achieve net neutrality by 2050. This ambitious move aligns with India’s commitment to becoming net neutral on carbon emissions by 2070.
In the initial phase, set to be achieved by 2030, JSW Steel, India’s largest steel producer, plans to reduce its emissions to 1.95 ton of CO2 per ton of steel from the current 2.36 ton. By 2050, the company aims to reach net neutrality through the utilisation of green hydrogen and advanced carbon capture, utilisation, and storage technologies.
The steel industry represents nearly 20 per cent of the industrial energy consumption in India, contributing about 12 per cent to the nation’s total carbon emissions. Sajjan Jindal, Chairman and Managing Director of JSW Steel, emphasised the critical role of decarbonized steel in achieving a low-carbon future for India.
To meet these goals, JSW Steel will employ a range of strategies including improved processes and energy efficiency, transitioning to renewable energy sources, utilising higher quality raw materials, and exploring alternative fuel sources. The company aims to boost its production capacity to 51.5 million ton by 2030-31 (April-March) and expects to exceed 43 million ton by September 2027. Over the next three years, JSW Steel plans to invest Rs 64,434 crore in capital expenditures, as outlined in its 2023-24 annual report.
The report highlighted that this expansion would be achieved with capital expenditures of less than $500 per ton, significantly below the global benchmark of $1,000 per ton for blast furnace-based capacities. Of the total capital expenditure, over Rs 37,000 crore has been carried forward with new approvals amounting to Rs 27,340 crore. A substantial portion of this investment, Rs 19,125 crore, is earmarked for expanding the Dolvi plant’s capacity by an additional five million ton, bringing its total capacity to 15 million ton.
The consolidated capital expenditure for the current financial year is projected at Rs 20,000 crore. The strategic location of the Dolvi plant, close to Western India’s markets, is expected to provide significant logistical advantages. The project is slated for completion by September 2027.
JSW Steel’s comprehensive approach to decarbonization underscores its commitment to sustainability and its pivotal role in India’s transition to a low-carbon economy.