JSW Steel, Smartex tie up to explore low-emission steel production

Under the MoU, the two companies will explore the potential to foster innovation and turnkey approaches aimed at accelerating and addressing climate action, decarbonisation, de-risking industry investments in the steel sector in India – from funding to technology availability and market access. social equality.

Smartex launched the Financing Steel Decarbonization (FSD) initiative during the 2022 Climate Week in New York City. FSD is creating a $1 billion Steel Decarbonization Fund (SDF) and an eco-system to support decarbonization of the steel industry.

India being the second largest steel producer is responsible for over 10% of carbon emissions from energy systems. Production of decarbonizing steel is not easy, with solutions commercially unviable or in early development stages, JSW Steel said in a statement.

SDF will host a technical support facility for preparation of identified decarbonization projects and explore a blended technology loan fund for low-cost long-term financing solutions.

Seshagiri Rao, Joint MD, JSW Steel, said, “The Indian steel industry needs innovation in low-emission steel making and financing solutions at a comparable cost advantage to reach the next level of steel decarbonisation.

Rao said, “Most of JSW’s strategic focus areas and organizational goals are set to align our existing production facility towards climate change mitigation and reduce the intensity of our CO2 emissions by 42 percent by 2030 from the 2005 base year. Has been done.”

“We are committed to staying within the Sustainable Development Scenarios (SDS) pathway proposed by the International Energy Agency (IEA), which requires significant investment. Financing the proposed Steel Decarbonization (FSD) Initiative and the Steel Decarbonization Fund (SDF), expected That would provide the right opportunity.”

KOP (Purpose Keeper) Abhijit Basu said, “Working with a leading steel producer like JSW, we have the opportunity to keep India at the forefront of low-emission steel production and create a sustainable path for both the environment and business. ” Why Smartex? “To do this we need to take the risk out of investing and open new doors for entrepreneurs.”