AM/NS India Becomes First to Earn Green Steel Certification

A New Benchmark for Indian Steel

ArcelorMittal Nippon Steel India (AM/NS India) has become the country's first integrated steel producer to receive Green Steel certification. The recognition comes under the Ministry of Steel’s recently introduced Green Steel Taxonomy, a framework designed to guide the sector towards decarbonisation and align with national climate objectives. This development marks a significant step in India's push for low-carbon industrial growth, positioning AM/NS India at the forefront of sustainable manufacturing.

The certification was awarded following a comprehensive audit by the National Institute of Secondary Steel Technology (NISST), the designated nodal agency. It provides a clear, government-backed validation of the company's efforts to reduce its carbon footprint.

Understanding the Star Ratings

Under the new taxonomy, AM/NS India’s flat steel products have received specific ratings based on their emissions intensity. The company's hot rolled (HR) coils and sheets were awarded a four-star rating, while its cold rolled (CR) coils and sheets obtained a three-star rating. These products are critical inputs for major industries, including automotive, infrastructure, defence, and consumer durables. The certification allows customers in these sectors to verifiably reduce their Scope 3 emissions, a crucial factor in today's environmentally conscious supply chains.

The Green Steel Taxonomy sets a clear eligibility threshold for certification, capping emissions intensity at less than 2.2 tonnes of carbon dioxide equivalent per tonne of finished steel (tCO₂e/tfs). Products that meet this benchmark are then classified under a three, four, or five-star rating system, providing a transparent measure of their environmental performance.

Leadership on Decarbonisation

Dilip Oommen, CEO of AM/NS India, stated that the taxonomy provides a clear and structured roadmap for the steel sector's decarbonisation journey. He emphasised that the certification is a direct result of the company's sustained investments in low-carbon manufacturing processes and its strategic shift towards clean energy sources. Oommen noted that this achievement reinforces AM/NS India's commitment to national climate goals while enhancing its global competitiveness. The company has already commenced commercial production of the certified green HR and CR steel products.

The Technology Driving Sustainability

The company's comparatively lower emissions profile is largely driven by its production methodology. Approximately 65% of AM/NS India's capacity is based on the direct reduced iron (DRI) route, which utilizes natural gas instead of coal. This strategic choice has been instrumental in lowering the company's carbon footprint, leading to a reduction in CO₂ emissions intensity by over 35% since 2015. This approach distinguishes AM/NS India from many competitors who rely more heavily on traditional, coal-based steelmaking processes.

Key Metrics and Future Targets

A summary of AM/NS India's green steel achievement highlights its progress and future commitments.

Investing in Renewable Energy

AM/NS India has further bolstered its sustainability credentials through significant investments in renewable energy. In 2025, its flagship plant in Hazira, Gujarat, began receiving clean power from a 1-GW hybrid renewable energy project located in Kurnool, Andhra Pradesh. This integration of clean energy into its operations is a critical component of its decarbonisation strategy.

Building on this, the company is also developing a 550-MW hybrid renewable project in Bhachau, Gujarat. This new facility is expected to deliver annual CO₂ savings of approximately 0.9 million tonnes, further reducing the environmental impact of its steel production.

Market Impact and Competitive Edge

The certification provides AM/NS India with a distinct first-mover advantage in a market increasingly demanding sustainable products. By offering government-certified green steel, the company enables its customers, particularly those in export-oriented sectors like auto components, to remain competitive globally. This is especially relevant with the implementation of international regulations like the European Union’s Carbon Border Adjustment Mechanism (CBAM), which places a cost on carbon-intensive imports.

While the company has not yet announced a specific premium for its green steel products, the certification creates a clear value proposition that could support differentiated pricing structures in the future.

A Forward-Looking Conclusion

AM/NS India's Green Steel certification is more than an accolade; it is a strategic move that aligns the company with the future of industrial production. By successfully integrating low-carbon technologies and renewable energy, the company has set a new standard for the Indian steel industry. With a clear target to reduce emissions intensity by another 20% by 2030, AM/NS India is positioned not just as a market leader, but as a key contributor to India's sustainable development goals.