John Cockerill India Ltd. plans to invest Rs 6,000 crore in green technologies for the steel industry, electrolysers for green hydrogen, and the defense sector as part of its plan to help companies reduce carbon emissions.
The engineering technology and services provider has partnered with Greenko Group to manufacture electrolysers for green hydrogen production and has partnered with Larsen & Toubro Ltd. to manufacture light weight (less than 25 tonne) turrets for the Indian defence sector.
"This collaboration with Greenko will facilitate the production of green ammonia, a critical component in fertiliser manufacturing," Francois David Martino, chairman of John Cockerill India, told NDTV Profit in an interview.
Of the 1 GW capacity manufacturing plant built by Greenko and John Cokerill India, the latter will provide the initial 640 MW of electrolysers to Greenko from its European facility, while the remainder capacity will be developed in India, Martino said.
The joint venture will set up a 1 GW per annum electrolyser manufacturing plant that can be expanded to 2 GW at a later date, he said.
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Referring to emissions and John Cockerill’s role in abatement of greenhouse gas emissions, Martino said the steel industry is a significant contributor to greenhouse gas emissions, and the European Union's Carbon Border Adjustment Mechanism (CBAM) poses a challenge to Indian steel exporters.
CBAM imposes a carbon tax on imports from countries with less stringent emission regulations. To mitigate this, John Cockerill is focusing on three new trends in steel technologies. First is green steel, which is produced using hydrogen, which reduces emissions significantly. Second is electric steel used in generators, motors, and home appliances, which helps in supporting electrification. And third is advanced high-strength steel that enables lighter, stronger, and more energy-efficient products.
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The chairman states that his company's Volter 1 technology will revolutionise the steel industry by reducing emissions to near zero. “Volter 1, combined with direct reduced iron (DRI) technology, will enable Indian steel companies to comply with CBAM regulations and maintain competitiveness in European markets," Martino said.
"Our evaluation indicates that green steel conversion costs are around Rs 100-120 more per tonne. However, with CBAM, traditional steel production will incur an additional Rs 100 per tonne in taxes. This makes green steel a more viable option," Martino said.
In addition to his steel and energy ventures, John Cockerill is exploring opportunities in India's defense sector. The company is collaborating with L&T to develop light tank turrets for the Indian Army, said Michael Kotas, managing director of John Cockerill India.
John Cockerill's investment will also focus on expanding its manufacturing capacity in India. The company aims to increase its Indian revenue to Rs 3,000 crore by 2030, accounting for one-third of its global revenue," Kotas said.
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