India’s JSW Steel on Tuesday said it will collaborate with Germany’s SMS Group and invest 100 billion Indian rupees ($1.26 billion) to cut carbon emissions at its plants.
JSW Steel said in a statement that SMS Group will provide commission to its technology experts, design, engineering consultancy and decarbonization to execute various projects.
JSW Steel will target to reduce greenhouse gas emissions per tonne of crude steel by 42% to less than 1.95 tonnes of carbon dioxide by 2030.
The company also said that it will focus on replacing thermal power with renewable energy, higher utilization of steel scrap and increase processing of raw minerals such as low and medium grade iron ore, known as beneficiation.
The tie-up will help JSW Steel produce “green steel in one of the hard-to-absorb sectors”.
Globally, steelmakers are investing heavily to cut carbon emissions, as the sector discharged more than 3.3 billion tons of the greenhouse gas last year, according to consultancy Wood Mackenzie.
($1 = 79.1400 Indian Rupees)