India’s JSPL invites bids for sale of 3,600 mt/d captured CO2 or building CCUS plant

India's Jindal Steel & Power Ltd. has invited expressions of interest for the sale of 3,600 mt/d of captured CO2 from its steel units in Odisha State, or bids to set up a downstream plant to use the gas, the EOI statement said June 30.

This is the first known case of large-scale CO2 commercialization in the Indian steel industry, according to a source. Steelmakers in the country are initiating steps to adopt clean energy technologies to produce low-carbon steel as export markets, particularly the EU, implement carbon border tariffs on high-emission imports.

"We are looking for a recognized company with a proven track record to utilize captured CO2 ... Indian steel industry has unparalleled potential for CO2 reduction in steelmaking and hence [it is] an opportunity for CO2 offtake from off-gasses," JSPL said in its statement.

The company said interested bidders are invited for direct sale of 99.5% captured CO2, from its plants in Angul, or put up a downstream unit "over-the-fence" to utilize captured CO2 to turn it into chemicals such as ethanol, methanol, urea and others, a process categorized under carbon capture, utilization and storage.

The EOI, open for 30 days, said one JSPL plant captures 1,800 mt/day CO2 using the methyldiethanolamine-based chemical absorption process, delivering 99.5% purity. The remaining 1,800 mt/day is captured by a physical absorption using chilled methanol with 88% purity, which can be further upgraded to 99% plus purity, using pressure swing adsorption technology.

"This CO2 is suitable for a wide range of industrial applications, including fuels, chemicals, food processing ... Land and utilities may be provided based on the proposed overall plant configuration," JSPL said.

India's steel sector produced approximately 140 million mt of steel in 2024, making it the world's second-largest producer after China. The EU's Carbon Border Adjustment Mechanism will initially cover steel, cement, aluminum, fertilizers and electricity, with full implementation by 2026.

CCUS technologies in steel production typically cost $50-$100/mt of CO2 captured, the earlier source said, citing industry estimates.

JSPL's website claims a capacity to produce up to 9.95 million mt/year of iron through direct reduced iron, blast furnace and hot briquetted iron routes, catering to its 11.6 million mt/year liquid steelmaking capacities across three locations in India and abroad.

The company's Angul plant can produce 4.5 million mt/year, which can be augmented to 6 million mt/year at a later stage, its website added. Its export market is growing with an existing footprint in 22 countries.