ArcelorMittal Nippon Steel unveils Rs 60,000 crore plan for green steel drive in India

Mumbai, April 16 (IANS) ArcelorMittal Nippon Steel (AM/NS) India has announced a Rs 60,000 crore investment plan to expand capacity, enhance scrap processing, and scale up renewable energy use as part of the drive to qualify for the three-star rating under the government’s new carbon emission standards, company officials said.

ArcelorMittal Nippon Steel India’s existing and anticipated manufacturing footprint and sustainability actions are set to ensure the company is ready to deliver a significant proportion of green steel in accordance with India’s new Green Steel Taxonomy, which is expected to be rolled out in FY 2026–27. With these endeavours, it is poised to become the first integrated steel company to achieve a three-star rating, according to a company statement.

Currently, 65 per cent of AM/NS 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, the statement said.

In the near to medium term, AM/NS India’s ability to align with the green steel mandate will be supported by several strategic initiatives to pursue more sustainable steel production. These include a renewable hybrid project by AM Green Energy in Andhra Pradesh's Kurnool, 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 Gujarat's Hazira. This initiative will not only reduce the company’s carbon emissions but will also provide environmental and cost benefits, the statement explained.

A new scrap processing facility in Maharashtra's Khopoli 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.

The company is also continuously improving operational efficiency by leveraging advanced technologies such as digitisation and machine learning to reduce energy and material usage in manufacturing, the statement explained.

ArcelorMittal Nippon Steel India CEO Dilip Oommen 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."

--IANS

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