The Business Bytes
NEW DELHI, SEPTEMBER 16, 2024 (TBB BUREAU): Jindal Steel and Power Ltd, in partnership with Jindal Renewables, has unveiled plans for India’s largest green hydrogen investment by a domestic steelmaker. The collaboration was formalized through a Memorandum of Understanding (MoU) aimed at driving decarbonization and establishing leadership in green energy within India’s steel sector.
The agreement outlines Jindal Steel’s strategy to incorporate green hydrogen into its Direct Reduced Iron (DRI) units in Angul, Odisha. In the initial phase, Jindal Renewables will develop green hydrogen production capacity of up to 4,500 tonnes per year, with operations set to begin by December 2025. Additionally, the project will supply 36,000 tonnes of oxygen annually for use in the Angul steelworks.
Jindal Renewables will also provide 3 gigawatts (GW) of renewable energy to Jindal Steel facilities, which will cut the steelmaker’s reliance on coal-fired energy by 50% over the next 2 to 3 years.
Sanjay Singh, Director of Strategy and Corporate Affairs at Jindal Steel, emphasized the significance of the partnership, stating, “By integrating green energy and green hydrogen into our production processes, we are not only reducing our carbon footprint but also setting a new benchmark for the Indian steel industry. This collaboration underscores our unwavering commitment to sustainable development and innovation.”
Under the agreement, Jindal Steel will supply essential infrastructure and support, while Jindal Renewables will manage the development and operation of the green hydrogen and renewable energy facilities. The collaboration aims to reduce the cost of green hydrogen production and secure a sustainable business model with a 25-year offtake agreement.
With a global investment of $12 billion, Jindal Steel continues to enhance its capacity utilization and operational efficiency, contributing to India’s goal of self-reliance. Meanwhile, Jindal Renewables is positioning itself as a leader in India’s renewable energy sector, currently developing nearly 3 GW of diverse renewable assets, all with locked-in power off-take agreements. The company aims to expand its portfolio to approximately 12 GW of renewable energy assets by 2030 and to become one of the leading providers of decarbonization solutions in the country.
