Indian steelmaker JSW Steel has signed an initial deal with German technology company SMS Group to reduce carbon emissions and produce green steel.
The two firms signed a memorandum of understanding (MOU) for exploring solutions to help decarbonize projects across various JSW Steel plants in India.
SMS Group will provide technology expertise, design, engineering consultancy and commissioning for executing decarbonisation projects across JSW Steel plants in India, while the steelmaker will provide raw materials, consumables and manpower for the project.
JSW plans to spend $1.26 billion to bring down greenhouse gas emissions by 42pc from a 2005 base year to less than 1.95t of CO2 per tonne of crude steel produced by 2030. It will focus on replacing thermal power with renewable power, higher use of scrap and increase beneficiation of low and medium-grade iron ore.
"Achieving net-zero in the steel industry will require major upgrades and capital investments at the steel mills and the initiative will have to be taken at the industry as well as policy level."Sajjan Jindal, JSW chairman and managing director
"While the steel Industry accounts for 0.7pc of the world's economic output, the industry also contributes 7pc towards global emissions," JSW chairman and managing director Sajjan Jindal said.
"Achieving net-zero in the steel industry will require major upgrades and capital investments at the steel mills and the initiative will have to be taken at the industry as well as policy level," he added.
SMS group managing board chairman and CEO Burkhard Dahmen said the firm’s experience in metallurgy combined with its digital expertise and plant technology consultancy will allow SMS group and JSW Steel to create a greener metals industry.