Surat: ArcelorMittal Nippon Steel India targets 20% reduction in emissions intensity by 2030. Loktej Surat, Business News

ArcelorMittal Nippon Steel India (AM/NS India), a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steel makers, has today published its first Climate Action Report. The report aims to accelerate carbon-free development in India. Immediate action for this is outlined in this report.
The report highlights a crucial moment for the Indian steel sector as the country aims to become a $5 trillion economy and the third largest global economy by 2026-27.
Aditya Mittal, Chairman, ArcelorMittal Nippon Steel India (AM/NS India) said, “Both our company and the country are expanding. We are committed to separating development and emissions. Research shows that if drastic changes are not made, rising demand for steel could lead to a 200% increase in emissions by 2050. Today, we announce that we are targeting an additional 20% reduction in AM/NS India’s emissions intensity with a roadmap. To achieve net-zero emissions in the long term. AM/NS India currently has one of the lowest emissions intensity among integrated steel producers in India, having reduced its emissions intensity by one-third since 2015.”
Dilip Ommen, CEO, ArcelorMittal Nippon Steel India (AM/NS India) said, “With a clear pathway, both our parent companies, ArcelorMittal and Nippon Steel, are committed to becoming net zero by 2050. AM/NS India as As India enters its next development phase, we take advantage of this important moment to articulate our near-term decarbonization strategy with specific commitments and actions across different fronts and timeframes. Our report provides a framework to facilitate long-term development. It also outlines a roadmap that provides clarity on key challenges for industry, government and civil society to address collaboratively.
Target of 20% emission intensity reduction in this decade
The strategy reflects AM/NS India’s immediate decarbonization plan while driving the company’s growth and includes the following:
• Increasing operational efficiency by increasing capacity utilisation, energy recovery wherever possible, scaling up successful trials to inject cleaner gases than coal into production processes, ensuring maximum fuel and material efficiency through better data analytics To incorporate new advanced digitization technologies etc.
• Increase in renewable energy to ensure 100% green grid by 2030. ArcelorMittal has invested US$0.7 billion in new solar and wind farms, which will be integrated with Greenco-owned pumped hydro storage facilities to provide round-the-clock power to AM/NS India’s Hazira plant. By the end of 2024, it will meet more than 20% of the power needs of the flagship Hazira plant, reducing AM/NS India’s carbon emissions by 1.5 million tonnes every year.
• Increasing scrap utilization in steelmaking to accelerate decarbonization, AM/NS India aims to increase scrap utilization from 3-5% to ~10% by 2030. The company also plans to set up several steel scrap processing centers across the country to encourage a circular economy for steel in India.
In addition to these actions, the company is designing the next phase of its blast furnace steel plant to immediately have the space and capacity to transition to low-carbon processes such as hydrogen-based steel making. This will ensure that AM/NS India is not tied to any particular production process.
Investing in the development of net zero technology
AM/NS India also outlines the strategic investments, pilots and partnerships required to produce net zero steel, including-
1. Green Hydrogen: Green hydrogen offers the possibility of near-zero-emission steel production. But given limited availability and competing demands, the supply of green hydrogen in India is restricted. To help change this, AM/NS India is working in two ways:
First: Running a pilot program to explore the use of low-carbon gases in production processes.
Second – to develop long-term strategic collaborations with the world’s leading energy companies to assess hydrogen deployment and secure low-carbon gas supplies.
2. CCUS: Carbon capture is a key component for complete decarbonization of the steel sector.
AM/NS India is also striving to enable this important technology in two ways:

One- To collaborate with IIT Bombay to research CCUS potential in the geological environment of India.
2. To actively explore partnerships in the Hazira Industrial Belt to collaborate with research institutions and industrial companies to create local clusters, enhancing efficiency, speed and scale in CCUS deployment.
AM/NS India is also participating in the ‘Xcarb India Accelerator Programme’ funded by ArcelorMittal to accelerate innovative ideas on clean technology from India. This program is being run with IIT Madras. The program is currently in the phase of identifying early-stage companies for assistance in advancing their technologies and business models from the laboratory to the market.
policy to accelerate progress
Given the complexity and urgency of the task, ambitious policy and regulations are vital to create the conditions necessary for progress. AM/NS India’s Climate Action Report recommends policy interventions in key areas, including:
1. Improve demand signals with clear purchasing standards
2. Supporting infrastructure for a low carbon economy
3. Tax incentives to encourage and promote green manufacturing
4. Increasing FDI with clear policy signals on low carbon steel
5. Increase research and development in hydrogen and reduce the cost of hydrogen.
6. Increasing availability of scrap