ArcelorMittal Nippon Steel India commits to 20% emission reduction by 2030

ArcelorMittal Nippon Steel India (AM/NS India) has unveiled its ambitious goal to reduce emissions intensity by 20% by 2030. This target, detailed in the company’s first Climate Action Report, represents a pivotal step in the decarbonisation journey of one of the world’s leading steelmakers. AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, is at the forefront of adopting innovative solutions to accelerate and decarbonise India’s development amidst the country’s goal to become the third-largest global economy by 2026-27.

Aditya Mittal, Chairman of ArcelorMittal Nippon Steel India, emphasized the critical challenge of decoupling development from emissions in the steel sector. With rising demand potentially leading to a 200% increase in sector emissions by 2050, AM/NS India’s commitment to reducing its emission intensity by an additional 20% is more than a corporate pledge—it’s a necessary step for sustainable growth. The company has already made significant strides, reducing its emissions intensity by one-third since 2015, positioning it as one of the integrated steel producers in India with the lowest emissions intensity.

Dilip Oommen, CEO of ArcelorMittal Nippon Steel India, outlined a clear pathway to achieving these ambitious targets. The company’s strategy includes enhancing operational efficiency, ramping up renewable energy usage, and increasing scrap use in steelmaking. By end of 2024, investments in solar and wind farms, integrated with pumped hydro storage facilities, will meet over 20% of the flagship Hazira plant’s electricity needs, reducing carbon emissions by 1.5 million tonnes annually.

The report also highlights strategic investments, pilots, and partnerships in green hydrogen and carbon capture, utilisation, and storage (CCUS) as essential components to achieving net zero steel. Collaborations with leading energy companies and research institutions, including IIT Bombay, aim to explore the potential of these technologies in India’s context.

Moreover, ArcelorMittal Nippon Steel India is advocating for enabling policies to unlock industry-wide progress. Recommendations include tax incentives for green manufacturing, increased foreign direct investment (FDI), and support for low-carbon economy infrastructure. Such policy interventions are crucial for accelerating the transition to sustainable steel production.

The company’s Climate Action Report not only charts a roadmap for the company’s decarbonisation efforts but also sets an example for the entire steel industry. As the sector faces increasing pressure to reduce its environmental footprint, AM/NS India’s initiatives represent a beacon of progress, innovation, and sustainability.

AM/NS India’s commitment to a 20% reduction in emissions intensity by 2030 is a significant milestone in the global steel industry’s journey towards sustainability. By integrating renewable energy, advancing green hydrogen and CCUS technologies, and advocating for supportive policies, ArcelorMittal Nippon Steel India is leading by example. This strategic approach not only addresses the environmental challenges but also ensures the company’s long-term competitiveness and resilience in a rapidly evolving global market.