Tata Steel inks deal with Germany’s SMS group to cut carbon emissions

As part of the agreement, the two companies will hold technical discussions and demonstrate a decarbonisation technology developed by the SMS group at a blast furnace in Tata’s Jamshedpur plant, Tata Steel said.

Tata Steel went on to add that major goal of this deal is to reduce carbon dioxide emissions by more than 50% from the blast furnace’s baseline operation.

Speaking on the Tata Steel and SMS Group deal, TV Narendran, CEO at Tata Steel said, “India being the second largest steel producer in the world also places a huge responsibility on large manufacturers like Tata Steel to lead the country’s decarbonisation journey.”

Steel production generates up to 9% of global carbon emissions, according to the World Steel Association, and producers across the globe are investing in technology that can help reduce their share of pollution.

Among other major sources of carbon emission, the IEA (International Energy Agency) estimates that direct CO2 emissions due to crude steel production is approximately 1.4 tons CO2 per ton steel produced. Recycling today claims the numbers are slightly higher, roughly 1.85 metric tons of CO2 per ton steel. The IEA base these findings on the basis of a report from World Steel Association.

McKinsey has also raised concern over the rising carbon emission by various sources. It also base the World Steel Association report over the carbon emission data.

Being the largest producer of steel in the world, China is largest contributor in carbon emission as well. According to experts, major reason for high emission by China is ‘Blast Furnace Ovens’, which is widely used in Chinese steel plants.

(With inputs from Reuters)

Updated: 15 Jun 2023, 08:39 AM IST