Construction Industry News
Jindal Steel & Power (JSPL) and Jindal Renewable Power Private (JRPL), promoted by Naveen Jindal, have signed a Memorandum of Understanding (MoU) to invest in green hydrogen production for steelmaking in Angul, Odisha.
The steelmaker said on Monday it would make the largest investment in green hydrogen ever by an Indian steelmaker.
As part of the MoU, JSPL plans to integrate green hydrogen at its direct reduced iron (DRI) units in Angul, Odisha. This collaboration underscores a significant commitment by both companies towards decarbonization and green energy leadership in the Indian steel industry, the company said in a statement.
In the first phase, Jindal Renewables will develop a green hydrogen generation capacity of up to 4,500 tonnes per annum, which will start operating in December 2025. In addition, the project will also involve the supply of 36,000 tonnes per annum of oxygen, which will be used at the Angul steel plant. JRPL will also supply 3 GW of renewable energy to JSPL facilities, reducing the steelmaker’s dependence on coal-fired power by 50 percent in the next 2-3 years.
Sanjay Singh, Director, Strategy and Corporate Affairs, JSPL, said, “This MoU marks a pivotal moment in our decarbonisation journey using green hydrogen and green energy, accelerating our transition to lower-emission steel.”
“By integrating green energy and green hydrogen into our manufacturing processes, we are not only reducing our carbon footprint but also setting a new benchmark for the Indian steel industry. This partnership is a testament to our unwavering commitment to sustainable development and innovation,” he added.
Under the outline of the agreement, JSPL will provide the essential infrastructure and support, while JRPL will develop and operate the green hydrogen and renewable energy facilities.
The company said the MoU, featuring innovative engineering, aims not only to significantly reduce the cost of green hydrogen production, but also to ensure a sustainable long-term business model by locking in offtake for the next 25 years.
The steel industry accounts for 10-12 percent of India's total emissions and companies are taking several measures to reduce their carbon footprint.
In the green hydrogen space, under the Sajjan Jindal group, JSW Energy has a seven-year green hydrogen supply agreement with JSW Steel for 3,800 tonnes per annum, along with associated green oxygen. In June, JSW Energy said that detailed engineering work and equipment ordering have been completed and commissioning is expected in Q4 FY25.
The company also said that an MoU has been signed with JSW Steel Ltd to supply an additional 85,000 to 90,000 TPA of green hydrogen along with 720,000 TPA of green oxygen, gradually till 2030.
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