JSW Steel commits $1 billion to decarbonize and achieve net zero emissions by 2050

MUMBAI: JSW Steel plans to invest $1 billion to reduce carbon emissions and achieve net neutrality by 2050. India has a target of achieving net neutrality by 2070.

Phase one until 2030

By 2030, JSW Steel, India’s largest steel producer, aims to reduce its emissions to 1.95 tonnes of CO2 per tonne of steel, from the current level of 2.36 tonnes.

Phase two until 2050

By 2050, the company aims to achieve net neutrality through the use of green hydrogen and carbon capture, use and storage.

The importance of decarbonization

The steel industry accounts for nearly 20% of India’s industrial energy consumption and about 12% of total energy-related carbon dioxide emissions. Sajjan Jindal, chairman and managing director, said in the company’s first Climate Action Report that decarbonized steel is key to India’s green future and that India must address the decarbonization challenge head-on.

Planned funds

JSW Steel will pursue various strategies, including improving processes and increasing energy efficiency, switching to renewable energy sources, using better quality raw materials and using alternative fuels.

Production capacity and investment outlays

JSW Steel aims to achieve a production capacity of 51.5 million tonnes by 2030-31 and over 43 million tonnes by September 2027. The company plans to spend ₹64,434 crore on capital expenditure over the next three years. This expansion will cost less than $500 per tonne, compared to the global benchmark of $1,000 per tonne for blast furnace-based capacity.

Current and future investments

Of the total capital expenditure, over ₹37,000 crore has been committed and fresh approvals amount to ₹27,340 crore. A significant portion, ₹19,125 crore, will be used to expand Dolvi’s production capacity by five million tonnes, taking its total capacity to 15 million tonnes.

Strategic location and completion

Dolvi’s strategic location close to the markets of western India is expected to be beneficial. The project is scheduled for completion in September 2027.