Indian steel producer JSW Steel has signed a memorandum of understanding (MoU) with Bharatia, an Indian impact accelerator responsible for project development, ecosystem integration and financing, and Carbon Iceland International, an Icelandic consortium specializing in carbon capture technology and e-fuel production, to explore the development of a 300,000-600,000 tons per year green methanol (eMethanol) project in Maharashtra, India.
The proposed project will assess the conversion of carbon dioxide emissions from JSW Steel’s operations in Raigad district into low-carbon eMethanol through an integrated carbon capture and utilization (CCU) process using green hydrogen produced from renewable energy sources.
The partners said the initiative aims to support industrial decarbonization by converting steelmaking emissions into low-carbon fuel for sectors such as shipping, chemicals, and other hard-to-abate industries. The project will initially evaluate the use of existing high-purity CO2 streams from JSW Steel’s operations while also assessing broader carbon capture opportunities across steelmaking processes.
According to the companies, the project could serve as a scalable model for industrial decarbonization while supporting India’s ambitions in green hydrogen, carbon capture, and sustainable fuel production.
JSW Steel’s consolidated crude steel capacity stands at 35.9 mln tons per year, including 1.5 mln tons in the US. The company plans to increase its domestic capacity to 50 mln tons per year and total consolidated capacity to 51.5 mln tons per year by FY2030-31.