Tata Steel & ABB ink pact to reduce carbon footprint of steel production

Mumbai: Tata Steel has signed a Memorandum of Understanding (MoU) with ABB to work together and co-create innovative models and technologies to help reduce the carbon footprint of steel production, said an official statement released by ABB on Wednesday. ABB will bring global experience in automation, electrification, and digitalisation to the mining and metals industries. The project will target improvements in energy efficiency, decarbonisation and circularity in plants and production facilities, the statement said.

Tata Steel & ABB to assess steel production facilities

"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," said the statement.

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 major sustainability targets including the achievement of carbon neutrality by 2045. In line with its aspirations, the steelmaker has a medium-term target to reduce carbon emissions to less than two tonnes of carbon dioxide (CO₂) per ton of crude steel in its Indian operations by 2025.

Vipul Gautam, Group Vice President, Global Account Executive for Tata Group, ABB said, “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 reduction of carbon footprint.”

"The 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,” he added.

Tata Steel to ramp up capacity in sustainable manner

The company expects to increase capacity to 40 million tonnes by 2030 hence the collaboration with technology partner ABB is a key enabler to achieve that growth in a sustainable manner, the statement said. ABB and Tata Steel will explore energy optimisation via hydrogen as an alternative fuel for upstream processes and energy reduction as well as substitution through fully integrated electrification and digital systems such as ABB Ability, eMine, and e-Mobility solutions and energy-efficient motors.

The global steel industry contributes between 7 to 9 percent of global fossil fuel CO₂ emissions, according to various sources, including the International Energy Agency (IEA).

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