ArcelorMittal Nippon Steel India Gears Up for Green Steel Taxonomy Implementation

ArcelorMittal Nippon Steel India (AM/NS India) has announced its preparedness for the upcoming Green Steel Taxonomy introduced by the Ministry of Steel, which is expected to be implemented in the financial year 2026–27. The company’s current manufacturing practices and sustainability initiatives place it in a position to deliver a significant share of its production as ‘green steel’ under the new classification system.

The Green Steel Taxonomy, released in December 2024, outlines a framework to define low-carbon steel based on carbon emissions intensity. Steel produced with emissions below 2.2 tonnes of CO₂ equivalent (tCO₂e) per tonne of finished steel will qualify for a green rating, categorised into three-star, four-star, or five-star levels. Steel exceeding this emissions threshold will not qualify for green certification.

AM/NS India is aiming to be the first integrated steel manufacturer in the country to achieve a three-star rating. The company reported a CO₂ intensity of 2.17 tCO₂ per tonne of crude steel for FY 2023, 14 percent lower than the national average. It plans to reduce its carbon emissions intensity to 1.8 tCO₂/tcs by 2030, based on a 2021 baseline, representing a 20 percent reduction. Since 2015, AM/NS India has already achieved a 35 percent cut in carbon intensity.

A significant portion—65 percent—of AM/NS India’s steel production currently comes from the Direct Reduced Iron (DRI) route, which uses natural gas and has a relatively low carbon footprint. The company’s expansion projects are also being developed with advanced technologies focused on further reducing emissions.

Speaking at the time of the taxonomy's launch, Steel Secretary Sandeep Poundrik stated that the adoption of the framework is mandatory and aims to bring down emission intensity to 2.2 tCO₂ per tonne by 2030, which would enhance global competitiveness.

To support its transition towards sustainable steel production, AM/NS India is implementing several initiatives. A renewable hybrid energy project by AM Green Energy in Kurnool, Andhra Pradesh, will supply electricity to the company’s flagship plant in Hazira, Gujarat, through a co-located pumped hydro storage facility. This is expected to offer both environmental and operational benefits.

The company has also commissioned a scrap processing unit in Khopoli, Maharashtra, with three more centres in development. These facilities are expected to increase the use of recycled materials in steelmaking, thereby reducing emissions. In addition, AM/NS India is adopting digital technologies and machine learning to enhance operational efficiency and reduce resource consumption.

AM/NS India produces a range of green and specialised steel products aimed at meeting global standards and promoting a sustainable value chain. It is currently considered among the lowest carbon-intensive steel producers in the country.

ArcelorMittal Nippon Steel India is a joint venture between ArcelorMittal and Nippon Steel. The company operates as an integrated flat carbon steel producer with an annual crude steel capacity of 9 million tonnes and a pellet production capacity of 20 million tonnes. It manufactures a wide portfolio of flat steel products, including value-added steel, supported by advanced downstream facilities.