Column: Energy transition story rekindles fund interest in metals
A potential return of heavyweight investment flows to the sector could be as powerful a price driver as physical supply shortages.
State-run Steel Authority of India (SAIL) has signed a pact with global miner BHP to work on reducing carbon emissions at the Indian steel producer’s plants that operate blast furnaces, SAIL said in a statement on Monday.
The companies are considering the use of hydrogen and biochar at SAIL’s plants while also building local research and development.
“The emergent need to align the steel sector with climate commitments is non-negotiable,” SAIL chairman Amarendu Prakash said.
India, the world’s third-largest emitter of greenhouse gases, has pledged to achieve a net zero carbon emission target by 2070.
India’s steel industry accounts for 10%-12% of the country’s total emissions, generating 2.54 metric tons of carbon dioxide for every ton of steel produced, which exceeds the global average of 1.91 metric tons.
(By Neha Arora and Yagnoseni Das; Editing by Mrigank Dhaniwala)
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