ArcelorMittal flagged for coal-powered blast furnaces in India
IEEFA raised investors should question high emission projects in developing countries.
Luxembourg-based steel company, ArcelorMittal, is building new coal-powered blast furnaces in India with its joint venture partner, Nippon Steel of Japan, the Institute for Energy Economics and Financial Analysis (IEEFA) flagged.
In a report, IEEFA noted investors should question high emission projects in developing countries.
“ArcelorMittal, the world’s second-largest steelmaker, appears to be planning a two-speed decarbonisation, with hydrogen-ready, direct reduced iron (DRI) technology to be installed overwhelmingly in developed nations while building more coal-consuming blast furnaces in the developing Global South,” Simon Nicholas, Lead Steel Analyst, IEEFA, said.
Construction of the two new blast furnaces at Hazira, Gujarat, has started with plans to expand capacity of 5 million tonnes per annum (Mtpa) and build new integrated steel plants at Kendrapara (24Mtpa) and Paradip (6Mtpa) in the state of Odisha.
The steelmaking technology being planned for the very large Odisha expansions has not been disclosed, IEEFA noted.
“The blast furnace expansions under construction at Hazira totalling 6Mtpa of capacity will increase carbon emissions by approximately 2 tonnes per tonne of crude steel produced — that is, around 12 million tonnes of additional carbon dioxide equivalent emissions if running at full capacity,” the report read.
“The further expansions being planned for Odisha would add much more if they are also based on blast furnaces.”