India's Tata Steel inks deal to cut carbon emissions with Germany's SMS group

NEW DELHI (Reuters) - India's Tata Steel signed an agreement with Germany's SMS group on Wednesday to collaborate on a technology that aims to cut carbon emissions from the steel-making process by more than 50%, the steelmaker said in a statement.

Steel production generates up to 9% of global carbon emissions, according to the World Steel Association, and producers across the globe are investing in technology that can help reduce their share of pollution.

The two companies will hold technical discussions and demonstrate a decarbonisation technology developed by the SMS group at a blast furnace in Tata's Jamshedpur plant in eastern India as part of the agreement, Tata Steel said.

The objective of the demonstration will be to reduce carbon dioxide emissions by more than 50% from the blast furnace's baseline operation, it added.

"India being the second largest steel producer in the world also places a huge responsibility on large manufacturers like Tata Steel to lead the country's decarbonisation journey," Tata Steel Chief Executive Officer T.V. Narendran said.

The company said it has set a target of achieving net zero carbon emissions by 2045.

(Reporting by Neha Arora; Writing by Shivam Patel; Editing by Pooja Desai)