JSW Steel, Bharatia and Carbon Iceland Join Hands to Explore Large-Scale Green Methanol Project in India!
JSW Steel Limited, Bharatia, and Carbon Iceland International have signed a strategic Memorandum of Understanding (MoU) to jointly explore the development of a large-scale green methanol project in India, marking an important step toward industrial decarbonisation and the adoption of low-carbon fuel technologies. The proposed initiative aims to transform industrial carbon emissions into valuable green fuel while supporting India’s long-term climate goals and energy transition strategy.
The agreement was signed during the 3rd India–Nordic Summit held in Oslo, Norway, highlighting the growing collaboration between India and Nordic nations in areas such as clean energy, climate technology, industrial sustainability, and carbon reduction solutions. The signing ceremony was witnessed by Icelandic Prime Minister Kristrún Frostadóttir and Minister Benedikt Höskuldsson, underscoring the strategic importance of the partnership and the strengthening ties between India and Iceland in advancing sustainable industrial development.
Senior representatives from the participating organisations, including Sanmit Ahuja, Naresh Lalwani, Hal Oskarsson, and Björn I. Victorsson, were also present during the signing ceremony, reflecting the commitment of all stakeholders toward developing innovative solutions for low-carbon industrial growth.
Under the proposed collaboration, the partners will evaluate the feasibility of establishing a 300 KTPA (Kilo Tonnes Per Annum) green methanol, or eMethanol, production facility in Raigad district, Maharashtra. The project is designed around the concept of carbon capture and utilisation (CCU), a technology that captures carbon dioxide emissions from industrial operations and converts them into useful products rather than releasing them into the atmosphere.
The planned facility will utilize carbon dioxide generated from JSW Steel’s manufacturing operations and combine it with green hydrogen produced using renewable energy sources to create green methanol. This approach not only reduces industrial carbon emissions but also produces a sustainable fuel that can be used across multiple sectors seeking alternatives to conventional fossil fuels.
Green methanol is increasingly gaining global attention as a versatile low-carbon fuel and feedstock. It has applications in shipping, chemicals, power generation, and industrial processes, making it one of the most promising solutions for sectors that are difficult to decarbonise. As global industries face increasing pressure to reduce emissions, green methanol is emerging as a key component of future clean energy ecosystems.
The proposed project is expected to serve as a model for carbon capture and utilisation within the steel industry, demonstrating how industrial emissions can be transformed into commercially valuable products. By integrating carbon capture with green hydrogen production and e-fuel manufacturing, the initiative aims to create a scalable framework that can be replicated across other industrial sectors.
In the initial phase, the partners will assess the utilization of an existing high-purity carbon dioxide stream available at JSW Steel’s facility. They will also evaluate opportunities to capture additional emissions generated throughout the broader steel manufacturing process. This comprehensive assessment will help determine the technical, economic, and operational feasibility of scaling the project to commercial levels.
Each partner brings unique expertise to the collaboration. JSW Steel, one of India’s leading steel producers, will contribute its large-scale industrial infrastructure, operational experience, and access to carbon dioxide streams generated through steel production. The company has been actively pursuing sustainability initiatives and has committed to reducing its carbon footprint through investments in cleaner technologies and renewable energy.
Bharatia will play a key role in project development, financing strategies, stakeholder engagement, and ecosystem integration. Its involvement is expected to support the commercial viability of the project while helping establish partnerships required for long-term success.
Carbon Iceland International will provide specialized expertise in carbon capture technologies, e-fuels development, and sustainable energy systems. Drawing on Iceland’s experience in renewable energy and carbon management, the company will contribute technical knowledge critical to designing and implementing the green methanol production process.
The initiative aligns closely with global efforts to accelerate industrial decarbonisation and develop alternative fuels capable of reducing greenhouse gas emissions. As countries and industries work toward achieving net-zero targets, projects that combine carbon capture, renewable energy, and low-carbon fuel production are becoming increasingly important.
For India, the proposed green methanol facility supports national objectives related to energy security, sustainable industrial growth, and carbon emissions reduction. The project also complements the country’s ambitions to become a global leader in green hydrogen and emerging clean fuel technologies.
If successfully implemented, the collaboration could demonstrate how traditional heavy industries such as steel manufacturing can play a central role in the clean energy transition. By converting industrial emissions into sustainable fuel, the project has the potential to create a circular carbon economy model that balances economic growth with environmental responsibility.
The partnership between JSW Steel, Bharatia, and Carbon Iceland International represents a forward-looking approach to industrial sustainability, combining advanced climate technologies with large-scale manufacturing capabilities. As demand for low-carbon fuels continues to grow globally, the proposed green methanol project could emerge as a landmark initiative that showcases India’s ability to lead in innovative and scalable decarbonisation solutions.
