Industrial decarbonization in India is increasingly being shaped by direct investment in renewable generation rather than reliance on grid procurement, and ArcelorMittal’s latest capital allocation underscores that shift.
The steelmaker is committing INR81 billion, about US$903 million, to three large-scale renewable energy projects across Maharashtra, Rajasthan, and Gujarat, positioning captive clean power as a central pillar of its emissions strategy in one of its fastest-growing steel markets.
The investment spans three distinct projects with staggered commissioning timelines. In Maharashtra, ArcelorMittal will develop a 36 MW solar plant in Amaravati, scheduled to come online in the first half of 2027. While modest in scale, the project reflects a broader move toward geographically diversified generation close to industrial demand centers. The larger deployments are concentrated in western India, where solar and wind resources align with existing steelmaking infrastructure.
In Rajasthan, the company plans a 400 MW solar installation paired with 500 MWh of battery energy storage in Bikaner, targeting completion in the first half of 2028. The inclusion of storage is notable in a market where intermittency remains a constraint for industrial offtakers seeking predictable power profiles. In Gujarat, ArcelorMittal is advancing a hybrid project in Bachau combining 50 MW of wind, 300 MW of solar, and 300 MWh of integrated battery storage, also slated for commissioning in early 2028. Hybridization reflects a growing preference among heavy industries for generation portfolios that smooth output across diurnal and seasonal cycles.
Once operational, the three projects are expected to double ArcelorMittal’s renewable energy capacity in India to 2 GW. The power will be supplied directly to AMNS India, the company’s 60:40 joint venture with Nippon Steel, supporting steel production at the Hazira plant in Gujarat. That linkage matters as steelmakers face increasing scrutiny over Scope 2 emissions, particularly as India’s grid remains heavily coal-dominated despite rapid renewable additions.
The investments also sit alongside parallel developments by AMNS India itself. The joint venture is building a 550 MW renewable project in Bachau, comprising 300 MW of solar and 250 MW of wind, effectively mirroring the parent company’s hybrid approach in both location and structure. Combined with ArcelorMittal’s earlier 1 GW renewables project that began supplying AMNS India earlier this year, the strategy points to a deliberate effort to anchor steel production growth to long-term clean power availability rather than short-term renewable procurement contracts.
At the corporate level, ArcelorMittal has framed the projects as economically grounded rather than symbolic. Chief executive Aditya Mittal has emphasized that the company is prioritizing investments that are both financially viable and aligned with its energy transition objectives. That positioning reflects broader industry realities. While hydrogen-based steelmaking and direct reduced iron technologies remain central to long-term decarbonization narratives, near-term emissions reductions in India are more likely to come from greening electricity supply and improving energy intensity.
Beyond India, the company is pursuing similar renewable energy strategies in Brazil and Argentina through joint ventures. Once fully operational, ArcelorMittal’s renewable projects across India, Brazil, and Argentina are expected to reach a combined capacity of 3.3 GW. The geographic spread suggests a replicable model in emerging markets where industrial growth, grid carbon intensity, and renewable resource availability intersect.
