JSW Steel To Invest USD One Bn For Decarbonisation Plans

JSW Steel plans to invest USD one billion across its operations to cut carbon emissions, as it aims to become net neutral on emissions by 2050. In its first phase by 2030, the steel-maker intends to cut its emissions to 1.95 tonne of CO2 for every tonne of steel produced.

In its second phase by 2050, the company aspires to be net neutral and will focus on green hydrogen and carbon capture, utilisation and storage. The steel industry accounts for almost a fifth of the industrial energy used in the country. As such, the company will look to implement better processes and energy efficiency, transition to using renewable sources of energy, high quality of raw materials apart from the usage of alternative fuel sources.

JSW Steel aims to achieve a production capacity of 51.5 million tonne by 2030-31, and is positioned to reach more than 43 million tonne in capacity by September 2027. It would spend Rs 64,434 crore in capital expenditure over the next three years, as per the company's annual report for 2023-24.

Of the company’s total capex, a little more than Rs 37,000 crore has been carried forward, with new approvals of Rs 27,340 crore. A significant portion of this investment, of Rs 19,125 crore, will be allocated for expanding capacity at Dolvi by another five million tonne, taking total capacity to 15 million tonne. The strategic location of Dolvi, will allow the company close proximity to the markets of Western India. The project is scheduled for completion by September 2027. The consolidated capital expenditure for the current financial year is Rs 20,000 crore.