JSPL, JRPL sign pact to invest in green hydrogen production in Odisha
MoU aims not only to significantly reduce the cost of green hydrogen production. Image: Shutterstock
Naveen Jindal-promoted Jindal Steel & Power (JSPL) and Jindal Renewable Power Private (JRPL) have signed a memorandum of understanding (MoU) to invest in green hydrogen production for steelmaking in Angul, Odisha.
The steel producer said on Monday it was to implement India’s biggest investment in green hydrogen by any Indian steelmaker.
As part of the MoU, JSPL plans to integrate green hydrogen into its direct reduced iron (DRI) units in Angul, Odisha. This collaboration underscores a major commitment by both companies towards decarbonisation and green energy leadership in India’s steel industry, the company statement said.
In the first phase, Jindal Renewables will develop a green hydrogen generation capacity of up to 4,500 tons per annum set to commence by December 2025. In addition, the project will also entail supply of 36,000 tons of oxygen per annum that will be used in the Angul steelworks. JRPL will also be supplying 3GW of renewable energy to JSPL’s facilities, reducing the steelmaker’s dependence on coal fired energy by 50 per cent in the next 2-3 years.
Sanjay Singh, Director of Strategy and Corporate Affairs at JSPL, said, “This MoU marks a pivotal moment in our journey towards decarbonisation using green hydrogen and green energy, accelerating our transition to lower emission steel.”
“By integrating green energy and green hydrogen into our production processes, we are not only reducing our carbon footprint but also setting a new benchmark for the Indian steel industry. This collaboration is a testament to our unwavering commitment to sustainable development and innovation,” he added.
According to the contours of the arrangement, JSPL will provide essential infrastructure and support, while JRPL will handle the development and operation of the green hydrogen and renewable energy facilities.
The company said, with innovative engineering, the MoU aims not only to significantly slash the cost of green hydrogen production but also to ensure sustainable long term business model by locking in offtake for the next 25 years.
The steel industry accounts for 10-12 per cent of India’s total emissions and firms are adopting different measures to lower the carbon footprint.
In the green hydrogen space, from the Sajjan Jindal group, JSW Energy has a seven-year green hydrogen supply agreement with JSW Steel for 3,800 tons per annum, along with associated green oxygen. In June, JSW Energy said that the detailed engineering work and ordering of equipment have been completed with commissioning expected in Q4 FY25.
The company also said 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, progressively by 2030.
First Published: Sep 16 2024 | 12:02 PM IST