Tata Steel Ltd and ABB India have signed a Memorandum of Understanding (MoU) and will work together to co-create innovative models and technologies to help reduce the carbon footprint of steel production. ABB will bring global experience in automation, electrification and digitalisation to the mining and metals industries.
Tata Steel is among the top global steel companies with an annual crude steel capacity of 35 million tons per annum and is committed to significant sustainability targets, including carbon neutrality by 2045. In line with its aspirations, the steelmaker has a medium-term target to reduce carbon emissions to less than two tons of COâ‚‚ per ton of crude steel in its Indian operations by 2025.
The two companies will focus on system-level assessments of Tata Steel’s manufacturing plants and production facilities for evaluation and co-development of short and long-term options for energy efficiency, decarbonisation and circularity.
ABB and Tata Steel will explore energy optimisation via hydrogen as an alternative fuel for upstream processes and energy reduction and substitution through fully integrated electrification and digital systems such as ABB Ability eMine and e-Mobility solutions and energy-efficient motors.
“Steel companies know there are opportunities to improve their processes, and Tata Steel is one of the leaders in this movement towards energy efficiency and carbon footprint reduction,” said Vipul Gautam, group vice president and global account executive for Tata Group, ABB. “World Economic Forum figures anticipate the energy transition will require as much as three billion tons of metals over the medium term; six times more mineral inputs by 2040 to reach net-zero emissions globally by 2050. ABB is confident in working with our customers and partners to evolve how steelmaking is powered to help reach production and environmental targets.”
To ensure sustainable growth, Tata Steel is working on the deployment of key enablers for deep decarbonisation, including the use of more scrap in steelmaking, the use of alternate fuels such as natural gas and green hydrogen, the use of renewable energy and deployment of carbon capture and storage/utilisation technologies. The company expects to increase capacity to 40 million tons by 2030; hence, this collaboration with technology partner ABB is a key enabler to achieve that growth sustainably.
The global steel industry contributes between 7 to 9 per cent of global fossil fuel COâ‚‚ emissions, according to various sources, including the International Energy Agency (IEA).
