Tata Steel and ABB India have signed a memorandum of understanding (MoU) to work together and co-create models and technologies to help reduce the carbon footprint of steel production.

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As per the MoU, the two companies will focus on system-level assessments of Tata Steel’s manufacturing plants and production facilities to evaluate and co-develop short and long-term options for energy efficiency, decarbonisation and circularity.

Tata Steel and ABB will explore energy optimisation via hydrogen as an alternative fuel for upstream processes and energy reduction as well as substitution through fully integrated electrification and digital systems such as ABB Ability eMine and e-Mobility solutions and energy efficient motors.

Tata Steel, a global steel company, has an annual crude steel capacity of 35 million tons per annum. The company expects to increase capacity to 40 million tons by 2030 hence this collaboration with technology partner ABB is a key enabler to achieve that growth in a sustainable manner.

Tata Steel said that it is committed to major sustainability targets including achievement of carbon neutrality by 2045. Tata Steel has a medium-term target to reduce carbon emissions to less than two tons of CO₂ per ton of crude steel in its Indian operations by 2025.

The global steel industry contributes between 7 to 9 percent of global fossil fuel CO₂ emissions, according to various sources including the International Energy Agency (IEA).

Shares of ABB India was trading 0.80 percent higher at Rs 4,476.15 per share at 12:03 PM on NSE Wednesday, while the shares of Tata Steel was down 2.09 percent at Rs 128.95 per share.