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JSW Steel has earmarked ₹100 billion (~$1.26 billion) for investments to reduce carbon emissions with targeted initiatives, including increasing the use of renewable energy to replace thermal power.
JSW Steel has entered into 25-year power purchase agreements with special purpose vehicles (SPVs) set up by JSW Energy to procure renewable energy through the group captive model. JSW Steel will acquire a 26% stake in each of those SPVs, which will set up renewable power facilities with an aggregate capacity of 958 MW, of which 225 MW was commissioned in April 2022.
The facts were revealed in the company’s Annual Report 2021-22.
In FY 2021-22, JSW Steel became the first steel company globally to issue $500 million (~₹39.36 billion) sustainability-linked bonds.
The company raised a $1 billion (~₹78.71 billion) bond in two tranches of $500 million (~₹39.36 billion) each, with tenures of 5.5 years and 10.5 years. The 10.5-year tranche was linked to the company’s greenhouse gas emission target.
JSW Steel said that new steel grades were developed during the year in response to the dual needs of import substitution and specialized sectoral demand. These include a high permeability grade suitable for wind generators with higher energy efficiency. The grade will also help substitute imports and support the Government of India’s initiative of rapid growth in clean, renewable energy.
For the first time, a few high-strength low alloy (HSLA) grades have been developed for making torque tubes for Indian and export markets to address the needs of solar trackers. Major global solar players have approved these HSLA grades for their installations.
The company has developed a climate action plan to improve its carbon emission intensity and achieve more than a 42% reduction by 2030 from the base year of 2005.
The company had set a target of consuming around ~1,000 MW of renewable energy by 2030, and it is progressing steadily towards achieving the same.
In the FY 2021-22, JSW Steel has supplied steel to 9.1 GW of solar projects and 620 MW of wind projects.
JSW started utilizing solar power by commissioning 225 MW of solar power at Vijayanagar by JSW Renewable Energy Vijayanagar, a subsidiary of JSW Energy Limited. JSW Steel Vijayanagar is currently utilizing solar power for its operation, resulting in reduced steam coal consumption.
In May this year, the JSW Group signed an agreement to buy renewable energy producer Mytrah Energy in a deal expected to be worth $1.8 billion (~₹141.68 billion) to $2 billion (~$157.42 billion), according to Mercom sources.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.