ABB India, an automation business, and Tata Steel have teamed up to develop technology that would lessen the carbon impact of steel production.
In its Indian operations, the steelmaker has set a medium-term goal to cut carbon emissions to under two tonnes of CO2 per tonne of crude steel by 2025, according to a statement from ABB India.
“Tata Steel Ltd and ABB India have signed a Memorandum of Understanding (MoU) for a project and will work together to co-create innovative models and technologies to help reduce the carbon footprint of steel production,” the statement said.
Under the MoU, the two businesses will concentrate on system-level analyses of Tata Steel’s production and manufacturing facilities in order to evaluate and jointly create short- and long-term alternatives for energy efficiency, decarbonization, and circularity.
ABB and Tata Steel will explore energy optimization via hydrogen as an alternative fuel for upstream processes and energy reduction as well as substitution through fully integrated electrification and digital systems.
Globally the iron and steel industry accounts for around 8-9 per cent of total CO2 emissions on an annual basis, whereas in India, it contributes 12 per cent to the total CO2 emissions.
In light of the agreements made at the COP26 climate change summit, the Indian steel sector must significantly reduce its emissions.
On Wednesday, ABB India Ltd shares closed 1.06% up at Rs. 4,488 and Tata Steel company shares closed at 1.7% down at Rs. 129.45 on NSE.
