AMNS India looks to reduce CO2 intensity below 2.2 tonnes benchmark for green steel

New Delhi, Apr 16 (PTI) AMNS India looks to bring down its CO2 intensity under 2.2 tonnes per tonne of finished steel in line with the government's Green Steel Taxonomy, which is expected to be rolled out in FY27, senior company officials said on Wednesday.

At present, the company's CO2 emission intensity is at 2.23 tonnes per tonne of finished steel output, Ranjan Dhar, Director & Vice President - Sales and Marketing, and Arvind Bodhankar Chief Sustainability Officer at Arcelor Mittal Nippon Steel (AMNS) India said.

To meet the goal, AMNS India is taking various measures to manufacture 70 per cent of products using low-carbon emitting technologies by the first quarter of FY27, senior executives said in a joint media interaction in the national capital.

Reducing emissions below the 2.2-tonne mark will qualify AMNS India for a 3-star rating under the Green Steel Taxonomy launched by Union Steel Minister H D Kumaraswamy in December 2024.

As per the ministry's taxonomy, green steel shall be defined in terms of the percentage of greenness of steel, which is produced with CO2 equivalent emission intensity of less than 2.2 tonnes per tonne of finished steel.

If 1.6 tonnes of CO2 or less is emitted in production of 1 tonne of finished steel, it will be considered 5-star green-rated steel.

On emissions in the range of 1.6 to 2 tonnes, the product will be given a 4-star rating, while those with 2 to 2.2 tonnes of emission levels will be rated 3-star.

AMNS India is in the process of expanding its overall capacity to 15 MT from the current 9 MT by Q1 FY27.

Currently, 65 per cent of AMNS India's steel capacity is derived from the Direct Reduced Iron (DRI) route that uses natural gas.

This process has a low carbon footprint. Further, the ongoing expansion incorporates state-of-the-art technologies that focus on lowering carbon emissions.

"In the near to medium term, AMNS India’s ability to align with this mandate will be supported by several strategic initiatives to pursue more sustainable steel production, including a renewable hybrid project by AM Green Energy in Kurnool, Andhra Pradesh, with energy storage services from a co-located pumped hydro storage facility will deliver power to AM/NS India’s flagship steel manufacturing plant in Hazira, Gujarat.

This initiative will not only reduce the company’s carbon emissions but will also provide environmental and cost benefits.

A new scrap processing facility in Khopoli, Maharashtra, which is already operational. Along with three additional centres under development, this facility will enhance the use of recycled materials, further reducing the company’s carbon footprint.

Continuously improving operational efficiency by leveraging advanced technologies such as digitisation and machine learning to reduce energy and material usage in manufacturing.

Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India (AM/NS India), said, “As India pursues its decarbonisation goals toward net-zero emissions by 2070, it has pioneered the world’s first green steel taxonomy. This landmark initiative provides a clear roadmap for the steel industry to transition towards sustainable practices.

“AM/NS India stands firmly aligned with this vision, and the initiatives we have undertaken give us confidence that we will be ready when this taxonomy is implemented.”

AM/NS India’s green and specialised steel products help customers meet global standards, export efficiently and promote a greener value chain. The company is among the lowest carbon-intensive steelmakers in India, leading the way as India’s green steel taxonomy comes into force.