Jindal Stainless bets ₹800 crore on green energy to protect crucial EU steel exports from new carbon tariffs
New Delhi: With the full rollout of the EU’s Carbon Border Adjustment Mechanism (CBAM) in January, Jindal Stainless Ltd is racing to protect its exports from the looming carbon cost curve. The country’s largest stainless steel producer is investing ₹700-800 crore will be transferred from domestic sources to renewable energy and green hydrogen, aiming to reduce onboard emissions and comply with Europe’s tightening sustainability norms.
CBAM is a tariff that would require importers to pay for carbon released when producing goods abroad, effectively extending Europe’s carbon pricing system to foreign producers. This poses a compliance test for Indian steelmakers, which still rely heavily on coal-based production.
With approximately half of the identified investments already made, Jindal Stainless achieved approximately 14% lower CO₂ emissions in FY25 compared to the previous year.
Focus on renewable energy and green hydrogen
Jindal Stainless General Manager Abhyuday Jindal said that around 65% of the total investment will be towards power purchase agreements (PPAs) for 24-hour 300 MW renewable energy supply. The remaining 35% of the investment will be directed to private solar energy projects for the production of energy and green hydrogen.
Abhyuday is the grandson of Jindal Group founder Late Om Prakash Jindal. Abhyuday’s father Ratan is the chairman of Jindal Stainless. His cousins include Parth Jindal, son of JSW Group chairman Sajjan Jindal, and Venkatesh, son of Jindal Steel Ltd chairman Naveen Jindal. Parth and Venkatesh Jindal are also actively involved in the family business.
The company’s investments will also be split 65-35 between the two production units, with more going to Jajpur-focused projects and the rest to Hisar projects. About 50% of the planned expenditure was on fixed solar capacities through PPAs at Hisar and Jajpur.
“The remaining amount is planned to be invested over the next 3-4 years to further increase our ’24-hour’ renewable energy capacity and increase green hydrogen production at our facilities,” Jindal said. he said. “More renewable capacity is being added every month,” he said, adding that the company is “as ready as possible.”
However, Jindal pointed out the problem that India’s grid-level dependence on fossil fuels remains a structural constraint. While European producers operate on grids largely powered by renewable energy sources, India’s energy mix remains dominated by coal.
The EU is one of the largest export markets for Indian steel and stainless steel producers. For Jindal Stainless, the block accounts for 40% of its exports and about 4% of its sales volume. In the quarter ending June 30, Jindal Stainless’ exports constituted 9% of its total volume. The company’s total sales reached 626,252 tons in this quarter, an increase of 8.3% compared to the previous year.
