ArcelorMittal Nippon Steel’s Vision for Green Steel in India
ArcelorMittal Nippon Steel (AM/NS) India has unveiled an expansive Rs 60,000 crore investment plan as part of its commitment to sustainable steel manufacturing. The plan involves a wide array of strategic initiatives, including increasing the company's capacity, improving scrap processing, and incorporating renewable energy into its operations. This initiative aims to align AM/NS India with India's green steel taxonomy, a groundbreaking regulatory framework that promotes low-carbon steel production.
India’s green steel agenda is set to play a critical role in the country's decarbonization efforts. The green steel taxonomy aims to create a pathway for industries to produce steel with a much lower carbon footprint. AM/NS India’s expansion is a response to these evolving standards, and the company is aiming to become the first integrated steel maker to achieve the three-star rating under this new system. The three-star rating reflects a high level of commitment to sustainability and environmental protection in steel production.
The investment will not only modernize production facilities but also allow AM/NS India to lead the way in sustainable practices within the steel sector, contributing significantly to India’s long-term decarbonization goals. The company is poised to meet the green steel mandate, which is expected to come into effect by FY 2026–27.
Strategic Investments and Infrastructure Upgrades
As part of this green steel initiative, AM/NS India plans to heavily invest in both its physical and technological infrastructure. Currently, 65% of the steel produced by AM/NS India comes from the Direct Reduced Iron (DRI) route, a method that uses natural gas instead of coke, significantly reducing carbon emissions compared to traditional blast furnace methods.
One of the main pillars of the expansion is a renewable hybrid project being developed at Kurnool, Andhra Pradesh. This initiative will involve the integration of renewable energy generation with a pumped hydro storage system, which will provide a constant and reliable energy supply to AM/NS India’s flagship steel plant in Hazira, Gujarat. This hybrid project will help the company reduce carbon emissions while simultaneously lowering energy costs. The use of renewable energy will significantly reduce the company’s reliance on fossil fuels, which is a key step in reaching the company's net-zero emissions goal by 2070.
AM/NS India is also focusing on modernizing its existing production plants with state-of-the-art equipment and technologies to ensure that its manufacturing processes are as energy-efficient and low-carbon as possible. These upgrades will include high-efficiency furnaces, smelting technologies, and energy recovery systems that minimize waste and emissions.
Scrap Processing: A Cornerstone of the Green Steel Strategy
A significant part of AM/NS India’s green steel roadmap is the development of scrap processing facilities. The company has already commissioned a scrap processing plant in Khopoli, Maharashtra, which is designed to recycle steel scrap into high-quality steel products. The facility is part of the company’s effort to enhance the use of recycled materials, which is a crucial part of sustainable steel production.
In addition to the Khopoli facility, AM/NS India is planning to open three additional scrap processing plants in different regions of India. These facilities will play a vital role in improving the recycling rate of steel, further reducing the demand for virgin iron ore and the associated carbon footprint. Steel recycling requires significantly less energy compared to traditional methods, making it one of the most effective ways to produce low-carbon steel.
The company’s efforts to recycle steel also contribute to a circular economy by ensuring that valuable raw materials are reused rather than discarded. This initiative is in line with India’s focus on reducing industrial waste and supporting a more sustainable and resource-efficient manufacturing sector.
Technological Innovation to Drive Efficiency
Technological innovation is another key focus of AM/NS India’s expansion strategy. The company is heavily investing in digitization, machine learning, and artificial intelligence (AI) to improve operational efficiency across all stages of the manufacturing process. These technologies will be used to optimize energy consumption, reduce material waste, and improve production yields.
By integrating machine learning algorithms and AI-driven automation, AM/NS India will be able to make real-time adjustments to its production processes, reducing energy usage and improving the quality of its steel products. Additionally, the company is investing in advanced digital platforms that allow for better resource management, including energy, water, and raw materials. These innovations will also improve the company’s bottom line by reducing waste and operational costs.
Furthermore, AM/NS India is adopting innovative techniques such as carbon capture and storage (CCS) and carbon utilization technologies, which will allow the company to capture carbon emissions generated during the manufacturing process and either store them underground or repurpose them for other industrial uses. This will further help AM/NS India in reducing its overall carbon footprint.
A Strategic Alignment with India’s Long-Term Sustainability Goals
India is one of the world’s fastest-growing economies, and with that growth comes an increased demand for steel. The Indian government has set ambitious targets for decarbonization, with a commitment to achieve net-zero emissions by 2070. To support these goals, the green steel taxonomy is a significant step forward in guiding industries towards sustainable practices.
By aligning itself with the green steel taxonomy, AM/NS India is ensuring that it will be well-prepared to meet the upcoming regulatory standards. The company’s investment in sustainable steel production positions it as a leader in India’s green steel movement, reinforcing its commitment to the country’s sustainability agenda.
In his statement, Dilip Oommen, CEO of AM/NS India, highlighted the importance of India’s green steel taxonomy as a pioneering initiative that will shape the future of the steel industry. He emphasized that AM/NS India is fully committed to these sustainability goals, and the company is confident that it will meet the regulatory requirements when they are implemented.
The company’s efforts will not only help in reducing carbon emissions but will also help India in becoming a global leader in green manufacturing.
Key Takeaways:
• Rs 60,000 crore investment plan aimed at enhancing capacity, scrap processing, and renewable energy integration in India.
• AM/NS India aims to achieve a three-star rating under India's green steel taxonomy by FY 2026-27.
• 65% of AM/NS India’s steel is produced using the Direct Reduced Iron (DRI) route, a low-carbon method.
• Renewable hybrid project in Kurnool, Andhra Pradesh integrates pumped hydro storage to provide clean energy to Hazira plant, reducing carbon emissions.
• New scrap processing facilities in Khopoli, Maharashtra, and three other locations will increase the use of recycled materials and lower carbon footprint.
• Digitization, machine learning, and AI will enhance operational efficiency and reduce energy consumption.
• AM/NS India is aligned with India’s net-zero emissions goal and green steel mandate, aiming to lead in sustainable steel production.
