JSL Super Steel signs solar power deal with Sunsure Energy to slash emissions at Ghaziabad plant

How will the Sunsure Energy-JSL Super Steel solar deal transform green steelmaking in India?

JSL Super Steel, a subsidiary of India’s largest stainless steel manufacturer, Jindal Stainless Limited, has entered into a strategic renewable energy agreement with Sunsure Energy to transform its Ghaziabad operations. On April 10, 2025, the companies announced an 11 megawatt-peak (MWp) long-term solar power purchase agreement (PPA), set to displace nearly 40 percent of JSL Super Steel’s conventional energy use. The renewable power will be sourced from Sunsure’s 49 MWp solar project in Augasi, Uttar Pradesh, under the state’s Power Banking Policy.

This PPA marks a crucial milestone in India’s transition to sustainable steelmaking. Steel production remains one of the most carbon-intensive industrial processes globally, and decarbonising this sector is central to achieving India’s broader Net Zero objectives. The JSL-Sunsure deal exemplifies how industrial decarbonisation and energy security can converge through innovative private-sector collaboration.

What are the environmental and operational benefits of this solar PPA?

JSL Super Steel’s Ghaziabad facility will receive approximately 16.5 million units (MUs) of clean energy annually, translating into an avoidance of 12 million kilograms of carbon dioxide emissions each year. This reduction is equivalent to planting over 545,000 trees, according to estimates shared by the companies. The deal is directly aligned with Jindal Stainless‘s short-term goal of halving carbon emissions by 2035 and its long-term vision of achieving Net Zero by 2050.

Beyond environmental impact, this transition offers strong operational upside. Solar energy procurement under a fixed PPA can provide cost stability, reduce exposure to fossil fuel price volatility, and support compliance with evolving environmental regulations. For manufacturers like JSL Super Steel, which produce wire rods and rebars critical to infrastructure and automotive sectors, clean energy integration is not only about sustainability but also about long-term competitiveness.

Why does this move matter in the context of India’s green steel ambitions?

India is currently among the top steel producers globally. As demand for low-carbon and green-certified steel increases—particularly from global infrastructure, automotive, and construction firms—Indian steelmakers are under growing pressure to decarbonise. Green hydrogen, biofuels, and renewable electricity are becoming essential pillars of this transformation.

Jindal Stainless Limited has been an early mover in this space. It became the first Indian stainless steel manufacturer to launch a green hydrogen plant and has committed ₹700 crore toward various decarbonisation initiatives over the next five years. Its renewable strategy spans multiple vectors, including grid-based clean power, onsite renewables, and green fuel adoption across its operations.

This latest solar PPA adds another layer to its clean energy roadmap and strengthens its position as a sustainability leader in the metal manufacturing space.

How is Sunsure Energy enabling India’s industrial decarbonisation?

Founded in 2014, Sunsure Energy has evolved into a leading independent power producer (IPP), focusing on helping Indian industries transition to renewable power. With a $400 million equity commitment from Partners Group AG, the company is building a 10 GW renewable portfolio by 2030. Its current operations span over 500 MW, with 3.5 GW under development across India.

In Uttar Pradesh alone, Sunsure operates 160 MW of capacity, serving over 70 industrial clients, including major brands like Dabur, Inox Air Products, Kajaria, Emcure, and Lupin. Sunsure’s offering is centred around long-term PPAs that cover up to 70 percent of power requirements through a blend of solar, wind, and battery storage technologies.

Its presence in key industrial states, combined with its financial backing and execution capabilities, positions Sunsure as a critical enabler of India’s clean manufacturing future.

What are the strategic implications for Jindal Stainless?

Jindal Stainless Limited, which posted a consolidated annual turnover of ₹38,562 crore (approx. USD 4.7 billion) in FY24, is scaling its stainless steel melt capacity to 4.2 million tonnes by 2026. Its wide-ranging portfolio—spanning slabs, coils, plates, precision strips, and coin blanks—caters to industries increasingly prioritising sustainability in their supply chains.

With 16 facilities worldwide, including operations in Spain and Indonesia, and a strong domestic distribution network, the company’s scale allows for rapid implementation of green energy initiatives. The Ghaziabad facility, under JSL Super Steel, is a prime example of how renewable energy integration can be operationalised at scale.

This energy partnership enhances the company’s ESG profile, aligning with the growing expectations from institutional investors, regulators, and international clients who demand low-carbon materials.

What does market sentiment reveal about Jindal Stainless stock?

Jindal Stainless Limited (NSE: JSL) has witnessed a positive stock momentum following its consistent sustainability disclosures and operational performance. As of April 11, 2025, the company’s stock closed at ₹542.05, reflecting a 5.75 percent gain from the previous trading session. Despite a 22.39 percent decline over the past year, the stock has returned an impressive 166.36 percent over the last three years, substantially outperforming the Nifty Metal index.

Analyst sentiment remains bullish. Eleven analysts currently recommend a “Buy,” with an average 12-month target price of ₹780.60—indicating a potential 44 percent upside. The highest target stands at ₹920.00, while the most conservative forecast places it at ₹655.00.

The company maintains a healthy financial profile with a net profit of ₹668.78 crore in the latest quarter. Its return on equity (ROE) stands at 16.57 percent and a moderate debt-to-equity ratio of 0.415. A P/E ratio of 17.49 and a P/B ratio of 2.94 reflect reasonable valuation relative to peers. Future earnings are projected to grow at an annual rate of 20.4 percent, with revenues rising at 13.4 percent annually. ROE is expected to reach 22.9 percent over the next three years.

Investment Insight: Jindal Stainless is well-positioned for long-term growth, underpinned by operational resilience, decarbonisation leadership, and solid financials. Based on current projections and its ESG-aligned strategy, the stock is rated a “Buy” for investors seeking exposure to sustainable industrial plays. However, investors should account for macroeconomic factors, input cost variability, and export market dynamics.

Why are renewable energy transitions now essential for Indian industry?

India’s path to Net Zero by 2070 places industrial sectors at the centre of climate action. Manufacturing, which consumes over one-third of the country’s electricity, must shift toward renewable sources to meet emission reduction targets and maintain global competitiveness.

The government has provided various frameworks—including the UP Power Banking Policy and open access mechanisms—to incentivise solar adoption. As carbon pricing, global import levies like the EU’s Carbon Border Adjustment Mechanism (CBAM), and domestic ESG compliance pressures intensify, renewable PPAs are fast becoming a necessity rather than a strategic choice.

Companies that lead on clean energy adoption are more likely to secure premium pricing, better access to capital, and policy benefits in the coming decade.

JSL Super Steel’s 11 MWp PPA with Sunsure Energy reflects this broader industrial transition. More than a transaction, it is a blueprint for how Indian industry can align its production goals with national climate targets while strengthening financial performance and ESG credibility. As renewable energy becomes a core pillar of operational strategy, companies like Jindal Stainless are redefining what it means to lead in heavy manufacturing—making sustainability both the driver and the destination.