Synopsis
ArcelorMittal Nippon Steel India has announced a Rs 60,000 crore investment plan aimed at expanding capacity, enhancing scrap processing, and increasing renewable energy use to meet the government's new carbon emission standards, positioning itself to achieve a three-star rating.Key Takeaways
- Investment of Rs 60,000 crore for capacity expansion.
- Focus on enhancing scrap processing.
- Initiatives for renewable energy use.
- Aiming for a three-star carbon emission rating.
- Strategic projects in Andhra Pradesh and Gujarat.
Mumbai, April 16 (NationPress) ArcelorMittal Nippon Steel (AM/NS) India has revealed an ambitious investment plan of Rs 60,000 crore aimed at boosting production capacity, improving scrap processing, and increasing the use of renewable energy. This initiative is part of their efforts to achieve a three-star rating under the government’s new carbon emission regulations, according to company representatives.
The current and projected manufacturing capabilities of ArcelorMittal Nippon Steel India, combined with sustainability initiatives, position the company to deliver a significant amount of green steel in line with India's forthcoming Green Steel Taxonomy, anticipated to be implemented in FY 2026–27. With these measures, it aims to become the first integrated steel producer to secure a three-star rating, as stated in their announcement.
At present, 65 percent of AM/NS India's steel production is sourced from the Direct Reduced Iron (DRI) process utilizing natural gas, which boasts a low carbon footprint. The ongoing expansion also integrates cutting-edge technologies focused on minimizing carbon emissions, the statement mentioned.
In the near to medium term, AM/NS India's commitment to the green steel framework will be bolstered by strategic initiatives aimed at more sustainable steel production. This includes a renewable hybrid project by AM Green Energy in Kurnool, Andhra Pradesh, featuring energy storage solutions from a co-located pumped hydro storage facility, which will provide power to AM/NS India’s flagship steel plant in Hazira, Gujarat. This project is expected to decrease the company's carbon emissions while offering environmental and financial advantages, the statement detailed.
A new scrap processing facility in Khopoli, Maharashtra is already operational, and with three additional centers in development, this facility will promote the use of recycled materials, further lowering the company’s carbon footprint.
The company is continuously enhancing operational efficiency through advanced technologies like digitization and machine learning, aimed at reducing energy and material consumption during production, as explained in the statement.
CEO of ArcelorMittal Nippon Steel India, Dilip Oommen, stated: "As India moves toward its decarbonization objectives for net-zero emissions by 2070, it has introduced the world’s first green steel taxonomy. This groundbreaking initiative lays out a clear roadmap for the steel sector to transition to sustainable practices. AM/NS India is fully aligned with this vision, and our initiatives provide us with the confidence that we will be prepared when this taxonomy is enacted."
