Tata Steel Ltd and ABB have officially inked a Memorandum of Understanding (MoU) to collaborate on pioneering models and technologies aimed at reducing the carbon footprint associated with steel manufacturing. ABB, renowned for its global expertise in automation, electrification, and digitalization within the mining and metals sectors, will play a pivotal role in advancing these sustainability-driven initiatives.
Tata Steel stands tall among the world’s leading steel corporations, boasting an annual crude steel capacity of 35 million tons per annum. The company is deeply committed to achieving significant sustainability milestones, including the ambitious target of carbon neutrality by 2045. In alignment with these objectives, Tata Steel has set a medium-term goal to curtail carbon emissions to under two tons of CO₂ per ton of crude steel produced in its Indian operations by 2025.
The strategic collaboration between Tata Steel and ABB will primarily concentrate on conducting comprehensive system-level assessments of Tata Steel’s manufacturing facilities and production plants. The goal is to jointly evaluate and develop both short-term and long-term strategies focused on enhancing energy efficiency, decarbonization, and circularity.
Vipul Gautam, Group VP, global account executive for Tata Group at ABB, expressed, “Steel companies know there are opportunities to improve their processes, and Tata Steel is one of the leaders in this movement towards energy efficiency and reduction of carbon footprint. World Economic Forum figures anticipate the energy transition will require as much as 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.”
Tata Steel’s unwavering commitment to sustainable development forms an integral part of its corporate philosophy. To ensure sustainable growth, the company is actively pursuing key strategies for deep decarbonization. This includes the increased use of scrap in steelmaking, adoption of alternative fuels like natural gas and green hydrogen, reliance on renewable energy sources, and the implementation of carbon capture and storage/utilization technologies.
Furthermore, Tata Steel envisions expanding its capacity to 40 million tons by 2030. This collaborative endeavor with technology partner ABB is deemed a vital catalyst to achieve that growth sustainably.
The partnership between ABB and Tata Steel will explore various avenues for energy optimization, including the potential use of hydrogen as an alternative fuel for upstream processes, energy reduction, and substitution through the integration of comprehensive electrification and digital systems. ABB’s cutting-edge solutions such as ABB Ability™ eMine and e-Mobility, along with energy-efficient motors, will play a central role in this endeavor.
The global steel industry, as per multiple sources including the International Energy Agency (IEA), is responsible for contributing between 7 to 9% of global fossil fuel CO₂ emissions. With this collaboration, Tata Steel and ABB are determined to drive transformative change and make substantial strides towards decarbonization in the steel sector, contributing to global sustainability objectives.