AM/NS India well prepared for introduction of Ministry of Steel’s Green Steel Taxonomy

• Large proportion of AM/NS India products to meet new thresholds for what constitutes
  ‘green steel’
• Poised to become 1^st integrated steel company to qualify for three-star rating

New Delhi [India], April 16: ArcelorMittal Nippon Steel India’s (AM/NS India) 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 confirmation 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.

Green Steel Taxonomy for India was published in December 2024 by the Ministry of Steel to provide a common language and framework on what constitutes lower-carbon steel to advance decarbonisation of India’s steel industry and catalyse demand for greener steels for and from India.

Green steel, as defined in the taxonomy, is categorized based on the emissions intensity of the steel plant where it is produced. To qualify, the CO2 equivalent (CO2e) emissions intensity must be less than 2.2 tonnes of CO2e per tonne of finished steel (tfs). Steel with an emissions intensity above this threshold will not be eligible for a green rating, while steel produced below it will be rated on a three-tier system: three-star, four-star, or five-star green steel.

AM/NS India’s confidence in its ability to lead the steel industry under the thresholds set by the taxonomy stems from its strong track record of emissions reduction over the past several years and its clear plans to build on this progress in the years ahead. AM/NS India achieved a CO2 intensity of 2.17 tCO2/tcs in FY 23 –– 14% lower than the national average and aims to achieve 20% reduction in carbon emissions intensity by 2030 to 1.8 tCO2/tcs from the 2021 baseline. The company has already reduced its carbon emissions intensity by over 35% since 2015.

Currently, 65% 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.

At the time the Green Steel Taxonomy was unveiled, Steel Secretary Sandeep Poundrik underscored its mandatory status: “Adopting the Taxonomy of Green Steel is not optional; it is a mandate. This will help reduce the emission intensity to 2.2 tCO2 per tonne by 2030, ensuring global competitiveness and growth”.

In the near to medium term, AM/NS India’s ability to align with this mandate will be supported by several strategic initiatives to pursue more sustainable steel production, including:

• A renewable hybrid project by AM Green Energy in Kurnool, Andhra Pradesh, 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 Hazira, Gujarat. This initiative will not only reduce the company’s carbon emissions but will also provide environmental and cost benefits.

• A new scrap processing facility in Khopoli, Maharashtra, which is already operational. Along with three additional centers under development, this facility will enhance the use of recycled materials, further reducing the company’s carbon footprint.

• Continuously improving operational efficiency by leveraging advanced technologies such as digitisation and machine learning to reduce energy and material usage in manufacturing.

Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India (AM/NS India), 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.”

AM/NS India’s green and specialised steel products help customers meet global standards, export efficiently and promote a greener value chain. The company is among the lowest carbon-intensive steelmakers in India, leading the way as India’s green steel taxonomy comes into force.