JSW Steel to spend $1 billion on decarbonisation, aims net neutral by 2050 – ET Infra


JSW Steel plans to invest $1 billion across its operations to cut carbon emissions, aiming to become net neutral on emissions by 2050. India has committed to become net neutral on carbon emissions by 2070.

In its first phase by 2030, the country’s largest steel-maker intends to cut its emissions to 1.95 tonnes of CO2 for every tonne of steel produced. Its currently emits 2.36 tonne of CO2 for a tonne of steel.

In its second phase by 2050, the company aims to be net neutral and this will be done using a combination of green hydrogen and carbon capture, utilization and storage.

The steel industry accounts for almost a fifth of the industrial energy used in the country or about 12% of the total energy infrastructure carbon emissions.

“Given the significance of CO2 emissions from steel, I believe that decarbonized steel has a big role to play in a low-carbon India as the essential ingredient for India’s green future,” Sajjan Jindal, the chairman and managing director said in the company’s first-ever climate action report. “That is why I believe India must confront the challenge of Decarbonization head on.”

The company will be looking at a combination of measures – including better processes and energy efficiency, transition to using renewable sources of energy, using a better quality of raw materials apart from the usage of alternative fuel sources.

JSW Steel, which aims to have a production capacity of 51.5 million tonne by 2030-31 (Apr-Mar), will reach more than 43 million tonnes in capacity by September 2027. It will spend Rs 64,434 crore in capital expenditure over the next three years, the company said in its annual report for 2023-24 (Apr-Mar).

“This expansion will be executed with capital expenditures of less than US$500/ tonne, which is well below the global benchmark of US$1,000 per tonne for blast furnace-based capacities,” the report stated.

Of the company’s total capex, a little more than Rs 37,000 crore has been carried forward, with new approvals to the tune of Rs 27,340 crore. A significant portion of this investment, that is Rs 19,125 crore, will be allocated for expanding capacity at Dolvi by another five million tonne, taking its total capacity to 15 million tonne.

The consolidated capital expenditure outlined for the current financial year is Rs 20,000 crore.

At Dolvi, the company is expected to benefit from its strategic location, and close proximity to the markets of Western India. The project is scheduled for completion by September 2027.

  • Published On Jul 9, 2024 at 11:10 AM IST

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