ArcelorMittals Green Steel Ambition Takes Shape

ArcelorMittal Nippon Steel (AM/NS) India has announced plans to produce 70% green steel at its Hazira plant in Gujarat by 2027. This ambitious initiative aligns with India’s vision to decarbonize its steel industry and achieve net-zero emissions by 2070.

The proposed expansion involves an investment of ₹60,000 crore to enhance the plant’s capacity to 15.6 million tonnes per annum (mtpa). The company aims to achieve a three-star green rating for its production, indicating an emission intensity between 2.0 and 2.2 tonnes of CO₂ per tonne of finished steel. India’s steel ministry introduced a green steel classification system in December 2024, categorizing steel based on carbon emissions per metric tonne produced. Steel with emissions below 2.2 tonnes per tonne is classified as “green steel,” with further distinctions based on emission levels. This initiative is part of India’s broader efforts to decarbonize the steel industry and reduce greenhouse gas emissions. In response to concerns over the influx of cheaper steel imports, the Directorate General of Trade Remedies (DGTR) has recommended a 12% provisional safeguard duty on certain steel products for 200 days. This measure aims to protect domestic manufacturers from the adverse effects of increased imports, which have been attributed to trade diversions from countries like the US and EU imposing protective tariffs.

While larger steel producers support the safeguard duty, smaller enterprises and MSME exporters have expressed concerns about potential cost increases. The duty may lead to higher input costs for these units, impacting their competitiveness in global markets.
ArcelorMittal’s commitment to green steel production at the Hazira plant underscores the company’s dedication to sustainable practices and its alignment with India’s environmental goals. The initiative is expected to set a benchmark for the steel industry, demonstrating that large-scale industrial operations can transition towards low-carbon, eco-friendly production methods.

As the global steel industry faces increasing pressure to reduce carbon emissions, India’s green steel vision presents an opportunity for domestic manufacturers to lead in sustainable practices. The collaboration between the government and industry players like ArcelorMittal is crucial in achieving the nation’s climate objectives and fostering a resilient, green economy. In conclusion, ArcelorMittal Nippon Steel India’s green steel initiative at the Hazira plant represents a pivotal step towards sustainable steel production in India. The company’s investment and commitment to reducing carbon emissions align with national and global environmental goals, positioning India as a leader in the green steel revolution.

ArcelorMittals Green Steel Ambition Takes Shape