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 renewable energy, according to a report released Wednesday.The report, “Powering India’s Secondary Steel Transition,” found renewable electricity could reduce annual power costs by about 22 million to 24 million rupees ($250,000 to $275,000) per unit, or up to 34%. The report was jointly produced by a consortium of environmental groups and industry bodies including the Confederation of Indian Industry, WWF-India, the nonprofit group Climate Catalyst and the think tank JMK Research.Electricity accounts for up to 40% of operating costs for many small steel producers, making it one of the industry’s largest expenses. Profit margins at many of India’s smaller steel companies have been affected by rising fuel costs resulting from the Iran war.
India, the world’s most populous nation, is among the largest emitters of carbon dioxide and other greenhouse gases contributing to global warming. The steel sector accounts for as much as 12% of India’s annual emissions. Decarbonizing the sector is essential to meet the country’s goal of achieving net-zero emissions by 2070.
