Indian private-sector producer JSW Steel has signed an initial deal with US-based finance technology firm Smartex to explore low-emissions steel production.

 

Smartex will explore financing, technology availability and market access aimed at decarbonisation of the steel sector in India, while aiming to derisk industry investment and accelerate climate action. Smartex launched a financing steel decarbonisation initiative during the Climate Week 2022 in New York that is creating a $1bn steel decarbonisation fund and an ecosystem to support steel industry decarbonisation.

 

The fund will host a technical assistance facility for identified decarbonisation projects' preparation and a blended technology debt fund for exploring low-cost long-term financing solutions, JSW said.

 

"Indian steel industry needs innovation in low-emissions steel making and financing solutions at comparative cost advantage to reach the next level of steel decarbonisation," said JSW Steel's joint managing director and group chief financial officer Seshagiri Rao.

 

Indian steel producers earlier this year called for policy initiatives from the government to fuel production and adoption of green steel in the country.

 

JSW signed an initial deal with German technology company SMS Group last month to reduce carbon emissions and produce green steel.

 

It also announced plans in August to set up scrap shredding facilities in India in a joint venture with New Zealand's metal recycler National Steel Holdings. Argusmedia