Tata Steel and ABB India have signed a Memorandum of Understanding (MoU) regarding energy efficiency, decarbonization, circularity
As per the MoU, the two companies will focus on system-level assessments of Tata Steel’s manufacturing plants and production facilities to reduce the carbon footprint in steel production. The two companies will evaluate and co-develop short and long-term options for energy efficiency, decarbonization, and circularity in plants and production facilities.
Tata Steel and ABB are exploring integrated electrification and digital systems, including ABB Ability e-Mine and e-Mobility solutions, for energy optimization using hydrogen as a substitute fuel.
The partnership will enable Tata Steel to pursue its carbon neutrality target by 2045 as one of its major sustainability goals. In line with its aspirations, the steelmaker has a medium-term target to reduce carbon emissions to less than two tons of CO₂ per ton of crude steel in its Indian operations by 2025.
“The World Economic Forum figures anticipate the energy transition will require three billion tons of metals over the medium-term; six times more mineral inputs by 2040 to reach net-zero emissions globally by 2050. ABB is confident in working with our customers and partners to evolve how steelmaking is powered to help reach production and environmental targets,” said Vipul Gautam, Group Vice President, Global Account Executive for Tata Group, ABB.
The global steel industry contributes between 7 to 9 percent of global fossil fuel CO₂ emissions, according to various sources including the International Energy Agency (IEA).