Indian steelmaker JSW Steel has signed a first agreement with German technology company SMS Group to reduce carbon emissions and produce green steel.
The two companies have signed a Memorandum of Understanding (MOU) to explore solutions to help decarbonize projects at various JSW Steel plants in India.
SMS Group will provide the technology expertise, design, engineering consultancy and commissioning for the execution of the decarbonization projects at JSW Steel’s plants in India, while the steelmaker will supply the raw materials, consumables and labor for the project.
JSW plans to spend $1.26 billion to reduce greenhouse gas emissions by 42% from the 2005 base year to less than 1.95 t CO2 per ton of crude steel produced by 2030. It will focus on the replacement of thermal energy with renewable energy, increased use of scrap metal and increased beneficiation of low- and medium-grade iron ore.
“Achieving net zero in the steel industry will require major upgrades and capital investment in steel mills and the initiative will need to be taken at the industry level as well as at the policy level.
Sajjan Jindal, President and CEO of JSW
“While the steel industry accounts for 0.7% of global economic output, the industry also contributes 7% to global emissions,” said JSW Chairman and CEO Sajjan Jindal.
“Achieving net zero in the steel industry will require major upgrades and capital investments in steel mills and the initiative will have to be taken at industry level as well as policy level,” he said. added.
SMS Group Chairman and CEO Burkhard Dahmen said the company’s experience in metallurgy combined with its digital expertise and factory technology advice will enable SMS Group and JSW Steel to create a greener metals.