JSW Steel to invest $1 billion in decarbonization plans

JSW Steel plans to invest $1 billion in its operations to reduce carbon dioxide emissions as it aims to become net carbon neutral by 2050. In a first phase, the steelmaker aims to reduce emissions to 1.95 tonnes of CO2 for every tonne of steel produced by 2030.

In the second phase by 2050, the company aims to achieve net neutrality and will focus on green hydrogen and carbon capture, utilization and storage. The steel industry accounts for almost a fifth of the industrial energy used in the country. As such, the company will strive to implement better processes and energy efficiency, switch to renewable energy sources, high-quality raw materials in addition to using alternative fuel sources.

JSW Steel aims to achieve a production capacity of 51.5 million tonnes by 2030-31 and plans to reach over 43 million tonnes by September 2027. As per the company’s annual report for 2023-24, the company plans to spend Rs 64,434 crore on capital expenditure over the next three years.

Of the company’s total capital expenditure, a little over Rs 37,000 crore has been committed, with fresh approvals of Rs 27,340 crore. A significant portion of this investment, Rs 19,125 crore, will go towards expanding capacity at Dolvi by another five million tonnes, taking the total capacity to 15 million tonnes. Dolvi’s strategic location will allow the company to be close to markets in western India. The project is scheduled for completion by September 2027. The consolidated capital expenditure for the current financial year stands at Rs 20,000 crore.