India Green Steel Taxonomy: 5 Best Companies Insights

India Green Steel Taxonomy: 5 Best Companies

India is at a pivotal moment in its industrial journey. As the world races to curb emissions and embrace sustainable practices, green steel has emerged as a vital solution for decarbonizing heavy industry. With the steel sector contributing around 7% of global CO2 emissions, India’s move toward green steel is both a climate imperative and an economic opportunity.

What is Green Steel?

Green steel refers to steel produced through processes that drastically reduce carbon emissions compared to conventional blast furnace methods. Traditional steelmaking relies on coal and other fossil fuels, while green steel integrates cleaner technologies such as:

Electric Arc Furnaces (EAFs) powered by renewable energy
Direct Reduced Iron (DRI) using green hydrogen instead of natural gas or coal
Carbon Capture, Utilization, and Storage (CCUS) technologies
Scrap recycling to minimize raw material extraction

Green Steel Meaning in the Modern Economy

The green steel meaning extends beyond cleaner production. It signals a broader shift to sustainable value chains, ESG-aligned investments, and carbon-neutral exports. Driven by climate commitments, consumer demand, and global regulations, green steel is fast becoming a benchmark for responsible manufacturing.

India Green Steel Taxonomy: Defining the Path Forward

To guide the transition, India introduced the India Green Steel Taxonomy, a classification framework based on carbon intensity. It ranks steel production from 1-star (high emissions) to 5-star (ultra-low emissions) and features:

Emission Benchmark: Steel emitting less than 2.2 tonnes of CO2 per tonne qualifies as green
Technology-Neutral Approach: Focuses on outcomes, not production routes
Global Compatibility: Aligns with the EU’s Carbon Border Adjustment Mechanism (CBAM)

This green steel taxonomy empowers investors, regulators, and producers to accelerate adoption with clear standards.

India Green Steel Manufacturing Advantage

India, the world’s second-largest steel producer, already derives over 54% of its output from EAF and IF technologies—a natural fit for green upgrades. The India green steel industry is projected to grow from USD 24.8 billion in 2024 to USD 27.8 billion by 2030, with a 6.8% CAGR.

Key Drivers:

Rising global premiums for certified green steel (€200–300/tonne)
CBAM readiness for EU exports from 2026
National Green Hydrogen Mission and renewable energy expansion
Demand for low-carbon supply chains from OEMs and global brands

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Green Steel Manufacturing Companies

Several Indian companies are pioneering green steel production through innovation, investment, and international alignment.

Kalyani Group / Saarloha

Launched KALYANI FeRRESTA™, India’s first branded green steel
Uses EAFs and 100% renewable energy
Serves auto, aerospace, defense, and renewables sectors
The group (Kalyani) is likely to scale up Saarloha’s FeRRESTA output, and Kalyani Steels can become a downstream channel for green alloy steel supply.
FeRRESTA™ launched in December 2022 — India’s first green steel brand, used in automotive, aerospace, defense, and renewable sectors

JSW Steel

Building green hydrogen plants and certified GreenPro products
Aims to abate 9+ MnT CO2 by 2030 through 100+ decarbonization initiatives
Operates NSL Green Steel Recycling Ltd for scrap-based circular economy
The company is recognized at COP28 as a Global Energy Transition Changemaker
Setting up 10 GW RE capacity to supply steelmaking operations by 2030
The group has established NSL Green Steel Recycling Ltd to focus on scrap-based steel and circular economy

Shyam Metalics (SMEL)

Scaling production to 14.45 MTPA with renewable-powered captive DRI
Waste Heat Recovery and solar expansion to 109 MW
Targets EV battery market through aluminum foil exports

Tata Steel

Committed to net-zero by 2045
Piloting hydrogen-based DRI and CCUS at Jamshedpur
1,036 MW renewable capacity by FY25
Operating in UK/EU with EAF and DRI conversions; brand: Zeremis® Green Steel

Tata Steel’s long-term decarbonization and green steel production approach includes:
- In India
  - Modular scrap-based EAF plants: First at Ludhiana; more being explored for scrap-rich regions
  - Hydrogen Steelmaking: Successful large-scale hydrogen injection at Jamshedpur (E Blast Furnace)
  - Carbon Capture: Operating a 5 TPD CO₂ capture unit at Jamshedpur
  - Renewable Energy: 1,036 MW captive RE capacity by FY25; supplies Ludhiana EAF and others
- In Europe
  - Tata Steel Nederland:
  - Transitioning IJmuiden plant to DRI (initially gas, later green hydrogen) + EAF by 2030
  - Plans to use 30% scrap in future production
  - Zeremis® Green Steel Brand:
  - To deliver steel with 90–100% CO₂ footprint reduction for auto and infra segments

Jindal Steel & Power (JSPL)

Developed coal-gasification DRI and green hydrogen facility
First Indian firm to receive EPD for low-carbon steel
Captures 2,000 TPD CO2 at Angul and converts to biofuels and chemicals
Developing 2,800 MW hybrid renewable capacity (solar + wind) via Jindal Renewable Power to meet future steel plant energy demands

Green Steel Taxonomy in Practice: Export & Compliance Readiness

Company	Core Tech	Key Projects (by 2030)	CBAM/Export Ready
Tata Steel	Hydrogen BF, EAF, CCUS	3.2 MTPA EAF (UK), DRI EAF (Netherlands)	High
JSW Steel	Scrap EAF, RE, hydrogen pilot	Green steel plant, 10 GW RE by 2030	High
JSPL	Coal-gas DRI, CO2 capture	2 MTPA hydrogen DRI, 2.8 GW RE planned	High
Shyam Metalics	WHRB, captive DRI, solar	Stainless EAF, battery foil exports	Medium
Kalyani Steels	EAF, FeRRESTA™ pilot	Expanding to KSL downstream channels	Medium

Overcoming the Challenges

Despite clear momentum, India faces barriers to full-scale green steel adoption:

High costs for green hydrogen and RE integration
Limited hydrogen infrastructure
Lack of standardized green certification and traceability
Green steel pricing premium may hinder domestic adoption

Green Steel as a Strategic Catalyst

India’s policy push—PLI schemes, National Hydrogen Mission, and 500 GW RE target—sets the stage. Meanwhile, market dynamics and ESG capital are driving urgency.

Key enablers going forward:

Green steel hubs with shared RE and hydrogen infra
Public procurement mandates to stimulate demand
Integration with carbon markets for monetizing green credentials
International partnerships for tech and finance transfer

Final words on India Green Steel Industry

The rise of green steel is more than just a climate response. It’s a once-in-a-generation chance for India to rewire its industrial base around sustainability. With technological readiness, abundant renewables, and global market access, India can shift from being a cost leader to a carbon-conscious steel powerhouse.

From Tata Steel to JSPL, Indian firms are already showing that green steel is not just feasible—it’s scalable. As policy, markets, and innovation align, India is primed to lead the global green steel movement. The future of Indian steel is not only strong—it’s sustainable, smart, and unmistakably green.