Tata Steel’s Green Transition: 15 Million Tonnes of Recycled Steel Production Planned Over Next 15 Years

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  Tata Steel is set to revolutionize its steel production process by shifting towards sustainable recycling methods, aiming to produce 10–15 million tonnes of steel through the recycling route within the next 10–15 years. The move aligns with the company’s broader strategy to reduce carbon emissions and transition from traditional blast furnaces to electric arc furnaces.

Strategic Shift Towards Circular Economy

- Tata Steel is moving from linear production models to circularity, emphasizing scrap-based steelmaking to minimize environmental impact.

- The company has already established a recycling plant near Delhi and is setting up a 0.75-million-tonne recycling-based steelmaking unit in Ludhiana, expected to be operational by the end of this financial year.

- In the UK, Tata Steel has shut down its blast furnaces and is constructing an electric arc furnace at its Port Talbot facility, marking a significant shift in its European operations.

Global Expansion and Sustainability Goals

- Tata Steel currently operates with a total steelmaking capacity of 35 million tonnes across India, the UK, the Netherlands, and Thailand.

- The company aims to scale up its steel production capacity to 40 million tonnes by 2030 in India, reinforcing its commitment to sustainable growth.

- In the Netherlands, Tata Steel is in discussions with the Dutch government to transition towards greener steelmaking processes, ensuring that by 2035, no blast furnaces will be operational in Europe.

Impact on Industry and Future Outlook

- The transition to electric arc furnaces will significantly reduce carbon emissions, aligning Tata Steel with global sustainability standards.

- The company’s focus on recycling will enhance resource efficiency, reducing dependence on virgin raw materials and lowering production costs.

- Tata Steel’s leadership in sustainable steelmaking is expected to influence industry-wide adoption of greener technologies, setting a precedent for other manufacturers.

Sources: Mint, Rediff Money, Tata Group.