JSW Steel Enters Into Agreement to Explore Low-Emission Steel Production
JSW Steel has signed a memorandum of understanding (MOU) with Smartex to look into the possibility of promoting innovation and turnkey approaches, such as financing, access to technology, and market access, to reduce carbon emissions in India's steel industry.
The steelmaker says that reducing carbon emissions in the steel industry means making industrial investments less risky, taking action on climate change, and addressing social equity.
Smartex brought up the idea of financing steel decarbonisation (FSD) at 2022 Climate Week in New York City. FSD is setting up a $1 billion steel decarbonisation fund (SDF) and an eco-system to help the steel sector reduce its carbon emissions. India, the world's second-largest steel producer, is responsible for more than 10% of CO2 emissions from energy systems.
The fund will have a technical assistance facility for preparing projects to reduce carbon emissions and a blended technology debt fund for looking into low-cost long-term financing options.
Seshagiri Rao, joint managing director of JSW Steel & Group CFO, said:
"Most of JSW's strategic focus areas and organisational goals have been made to align our existing production facility with preventing climate change and reducing the intensity of our carbon dioxide emissions by 42% by 2030, compared to 2005 as a base year.
"We are committed to remaining within the sustainable development scenario (SDS) pathway proposed by the International Energy Agency (IEA), which requires significant investment. The proposed financing steel decarbonisation (FSD) initiative and Steel Decarbonisation Fund (SDF), hopefully, will provide the right opportunity."
Abhijit Basu, keeper of the purpose (KOP) at Smartex, said:
"Working with a premier steel producer like JSW, we have the opportunity to place India at the forefront of low-emission steel production and create a sustainable path for both the environment and business. To do this, we need to take the risk out of investing and open new doors for entrepreneurs."
JSW Steel is the largest integrated steel manufacturer in India. It is the main business of the diversified JSW Group. It has a steel-making capacity of 28 MTPA in India and the U.S., including capacities under joint control and new capacities that will be put into use this year at Dolvi in the Maharashtra state of India.
Source: Business Standard