ArcelorMittal Nippon Steel joint venture targets 20% emission cut by 2030

ArcelorMittal Nippon Steel India (AM/NS India) – a joint venture between global steelmakers ArcelorMittal and Nippon Steel – has outlined a pathway to reduce emissions intensity by 20 per cent by 2030 in its first Climate Action Report published on Monday.

Bolstering renewable energy to meet 100 per cent of grid electricity needs, increasing the recycling of scrap steel over twofold, and driving operational efficiencies with new technology improvements are key in achieving the target.

The report also sets out a series of strategic investments, pilots, and partnerships to accelerate the uptake of breakthrough technologies necessary to produce net zero steel in India, such as green hydrogen and carbon capture, utilisation and storage (CCUS).

Further, the report sets out recommendations for enabling policies including tax incentives, new norms for Foreign Direct Investment (FDI), a green grid, among others.

Aditya Mittal, Chairman, AM/NS India, said, “As both our company and country expand, we are committed to addressing the challenge of decoupling development from emissions. Without a transformation in steel production, research indicates rising demand could lead to a 200 per cent increase in sector emissions by 2050.”

“Today, we announce that we are targeting a reduction in AM/NS India’s emission intensity by an additional 20 per cent, with a roadmap for achieving net-zero emissions in the long term,” he added.

Mittal also said that AM/NS India currently has one of the lowest emissions intensities of integrated steel producers in India, having reduced its emissions intensity by one-third since 2015.

Dilip Oommen, CEO, AM/NS India, said, “With a clear pathway, both our parent companies, ArcelorMittal and Nippon Steel, have committed to becoming Net Zero by 2050.”

“As AM/NS India enters the next growth phase, we seize this pivotal moment to articulate our near-term decarbonisation strategy with specific commitments and actions across various fronts and timelines.”

AM/NS India is expanding capacity at Hazira in Gujarat from 9 million tonnes to 15 million tonnes.