ArcelorMittal S.A. MT and Nippon Steel’s joint venture, ArcelorMittal Nippon Steel India (AM/NS India), released its inaugural Climate Action Report. It highlights the venture’s commitment to accelerate and decarbonize India's development. This report comes at a crucial juncture for India's steel sector, as the country aims to achieve a $5-trillion economy and become the third-largest global economy by 2026-27.

Aditya Mittal, chairman of AM/NS India, emphasized the importance of addressing the challenge of development coupled with emissions. He stated that without significant changes in steel production, rising demand could lead to a 200% increase in sector emissions by 2050. Mittal announced AM/NS India's target to reduce emission intensity by an additional 20%, with a long-term roadmap toward achieving net-zero emissions.

Dilip Oommen, CEO of AM/NS India, reiterated the commitment of both parent companies, ArcelorMittal and Nippon Steel, to achieve Net Zero by 2050. He outlined the immediate decarbonization strategy, including operational efficiency enhancements, increased utilization of renewable energy and the promotion of a circular economy by raising scrap utilization in steelmaking.

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The immediate decarbonization plan includes measures such as enhancing operational efficiency through increased capacity utilization, deploying cleaner energy recuperation methods, and incorporating advanced digitalization technologies. Additionally, AM/NS India aims to achieve a 100% green grid by 2030 through investments in solar, wind, and hydroelectric power.

AM/NS India plans to increase scrap utilization in steelmaking and establish steel scrap processing centers across India to promote a circular economy. Furthermore, AM/NS India is designing blast furnace steel plants with the flexibility to adopt lower carbon processes, such as hydrogen-based steelmaking, when they become available.



To achieve net-zero steel production, AM/NS India is investing in breakthrough technologies such as green hydrogen and carbon capture, utilization, and storage (CCUS). The company is collaborating with leading energy companies and research institutions to explore the potential of these technologies in India's context.

AM/NS India's Climate Action Report also recommends ambitious policy interventions to accelerate progress, including clear procurement standards, infrastructure support for a low-carbon economy, tax incentives for green manufacturing, and increased foreign direct investment (FDI) in low-carbon steel. The report emphasizes the importance of increasing research and development in hydrogen and reducing the cost of hydrogen production.

AM/NS India is supporting the ArcelorMittal-funded XCarb India Accelerator Programme in partnership with IIT Madras to advance clean technology innovations from India.

Shares of ArcelorMittal have lost 5.8% in the past year compared with a 9.4% rise of the industry. Zacks Investment Research

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Zacks Rank & Key Picks

ArcelorMittal currently carries a Zacks Rank #3 (Hold).

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