India's ArcelorMittal Nippon Steel (AM/NS) aims to raise its ferrous scrap use to 10pc by 2030 from the current 3-5pc, with it also calling for government policy support to enable the steel sector's decarbonisation.

 

The company plans to upgrade its existing facilities and establish a new scrap yard and processing units to enhance its scrap production and storage capacity. It will also target setting up industrial scrap processing centres across multiple locations in the vicinity of industrial scrap generation and automotive clusters to simplify and expand collection.

 

AM/NS is looking to reduce its emissions intensity by 20pc from 2021 levels by 2030. It is also expanding its steel capacity from its current 9mn t/yr to 15mn t/yr by 2026.

 

The company has also called for government policy support to promote the decarbonisation of the steel sector. This includes a clear commitment from the government, as a significant buyer of steel, to increase purchases of low-carbon steel over time to allow producers to plan and scale lower carbon production. The development of purchasing standards, which provide clarity on what counts as low-carbon steel, was also needed, it said in its first climate action report released earlier this month.

 

AM/NS also called for a supportive tax environment, seeing an alignment of national taxes with international regimes, including the carbon border adjustment mechanism (CBAM), such that nationally-paid goods and services tax and compensation levies are recognised by the EU as taxes paid in the country of origin. The EU's CBAM has entered a transitional phase, with importers having to collect fourth-quarter greenhouse gas emissions data from 1 October 2023 and submit a first report by 31 January 2024.

 

The company further highlighted research and development into the use of hydrogen in reducing steel production emissions and developing India as a ship breaking hub, to enhance domestic scrap availability as ways to lower steel sector emissions. The development of a carbon market, a renewable powered national grid and carbon capture, utilisation and storage pipelines will also be needed to promote decarbonisation of the steel sector, it said. argusmedia