JSW Steel is making a significant move by transferring its sponge iron production facility located in Salav village, Raigad, Maharashtra, to its wholly-owned subsidiary, JSW Green Steel. This strategic decision was announced in disclosures submitted to stock exchanges on Tuesday, marking a pivotal step in the company’s commitment to sustainability and reducing its carbon emissions.

Transition to Green Steel

Founded in February 2022, JSW Green Steel aims to establish an integrated green steel plant with an ambitious target of producing four million tonnes per annum (MTPA). This initiative falls in line with JSW Steel’s broader strategy to minimize its carbon footprint while enhancing its manufacturing capabilities.

• Current Capacity: The Salav unit currently has a DRI capacity of 0.9 MTPA.
• Future Plans: The facility’s capacity will be expanded in phases to reach 4 MTPA, thus positioning JSW Green Steel as a key player in the green steel market.

Financial Details of the Transfer

The transfer of the Salav unit is set to commence on Wednesday, with an expected completion date by March 31. The transaction will be executed as a cash transfer or through the issuance of equity shares or convertible instruments, valued at approximately ₹2,233 crore.

JSW Steel has articulated that this move is essential for tracking CO2 emissions separately and for exploring innovative technologies, such as the use of green hydrogen for direct reduced iron operations. This approach is aligned with the growing demand for low-carbon steel production, especially for export purposes.

Commitment to Sustainability

By carving out the Salav unit and transitioning it to JSW Green Steel, the company is positioning itself at the forefront of the green steel revolution. The integration of advanced technologies and sustainable practices will not only enhance operational efficiency but also significantly contribute to global efforts aimed at combating climate change.

This strategic realignment reinforces JSW Steel’s dedication to producing steel with low carbon emissions while meeting the evolving demands of the market. As industries worldwide shift towards greener practices, JSW Steel is taking proactive steps to ensure its place as a leader in environmentally friendly steel production.

In summary, with its ambitious plans and solid execution strategy, JSW Steel is poised to make a lasting impact in the steel industry, paving the way for a more sustainable future.