In a major boost to India’s clean fuel and bioenergy ambitions, JSW Steel has signed a strategic agreement with Bharatia and Carbon Iceland International to explore the development of a large-scale green methanol (eMethanol) project in India.
The Memorandum of Understanding (MoU) was signed during the third India–Nordic Summit in Oslo, marking a significant step towards industrial decarbonisation and the expansion of bioenergy and low-carbon fuel infrastructure in the country, the company informed in a regulatory filing.
The signing ceremony was witnessed by Kristrún Frostadóttir and Benedikt Höskuldsson, highlighting growing cooperation between India and Iceland in climate technology, sustainable fuels and industrial transformation.
The proposed project, with a planned capacity of 300,000 tonnes per annum, will utilise carbon dioxide emissions generated from JSW Steel’s operations in Raigad district, Maharashtra, and convert them into green methanol using renewable hydrogen. The initiative is expected to create a pathway for transforming industrial emissions into clean fuel and chemical feedstocks.
Under the proposed model, carbon dioxide captured from steel manufacturing operations will be combined with green hydrogen produced from renewable energy sources to generate eMethanol, a low-carbon fuel increasingly viewed as an important component of future bioenergy and clean shipping ecosystems.
The partners said the project aims to establish a scalable carbon capture and utilisation framework for the steel sector while supporting India’s broader energy transition goals. Initial studies will focus on utilising an existing high-purity carbon dioxide stream from JSW Steel’s facility and evaluating opportunities to capture additional emissions from steel production processes.
The collaboration brings together expertise from different sectors. JSW Steel will contribute its industrial infrastructure and operational capabilities, Bharatia will support project development, financing and ecosystem integration, while Carbon Iceland International will provide expertise in carbon capture technologies, e-fuel production and industrial decarbonisation solutions.
Representatives of the three organisations said the initiative aligns with global efforts to expand the use of low-carbon fuels in shipping, industry and other hard-to-abate sectors. They added that the project could help strengthen India’s position as a growing hub for climate technology deployment and sustainable industrial development.
The agreement outlines a phased approach beginning with feasibility studies and technical assessments before moving toward potential commercial-scale implementation.
Officials said the partnership reflects increasing climate and industrial cooperation between India and Nordic countries and demonstrates how international collaboration can accelerate the deployment of large-scale decarbonisation and bioenergy projects.
JSW Steel, the flagship company of the JSW Group, currently operates steel manufacturing facilities across India and has committed to reducing carbon emissions from its steel-making operations by 42 percent by 2030. The company has also set a target of achieving carbon neutrality across its direct operations by 2050.The proposed green methanol project is expected to contribute to these sustainability goals while creating a new avenue for producing renewable fuels from industrial emissions.