India’s small steelmakers could save money and cut emissions with switch to renewable power
BENGALURU, India (AP) — Smaller steel companies responsible for nearly 40% of India’s crude steel production could cut their electricity bills by about a third while sharply reducing carbon emissions by switching to…
Small steel companies in India, which contribute to nearly 40% of the country's crude steel production, could significantly reduce their electricity bills and carbon emissions by transitioning to renewable energy sources, according to a new report. The "Powering India’s Secondary Steel Transition" study, released on Wednesday, revealed that switching to renewable electricity could slash annual power costs by 22-24 million rupees ($250,000 to $275,000) per unit, or up to 34%.
The report, co-authored by environmental groups and industry bodies, including the Confederation of Indian Industry, WWF-India, Climate Catalyst, and JMK Research, found that electricity expenses make up to 40% of operating costs for many small steel producers. The report's findings come as a response to the increasing impact of fuel costs on profit margins, which have been affected by the Iran war.
India, being the world's most populous nation, is a major contributor to global carbon dioxide emissions, and the steel sector accounts for up to 12% of the country's annual greenhouse gas emissions. To meet India's 2070 net-zero emissions target, decarbonizing the steel industry is crucial. Shifting to clean power could also protect Indian steel companies from European carbon taxes that began in early 2023.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
