Suzlon secures 248.5MW wind order from ArcelorMittal

Indian turbine manufacturer Suzlon Group has secured a 248.85MW wind energy order from ArcelorMittal Group through its Indian entity ArcelorMittal Nippon Steel India.

The order is part of the 550MW hybrid project in Gujarat, which includes 250MW wind, 300MW solar, as well as 300MWh of integrated battery storage.

The project will be used to decarbonise ArcelorMittal Nippon’s steel facilities in the region.

According to Suzlon, this is the company’s fourth major wind order for the purposes of steel decarbonisation, taking its contribution to approximately 1,156 MW of green steel capacity in India.

In a statement, Girish Tanti, Vice Chairman of Suzlon Group, highlighted the need for greener steel manufacturing in the country. "Steel is the backbone of India's infrastructure, yet it remains one of the most energy-intensive industries. As the sector accelerates its journey toward decarbonization, renewable energy has become a competitive and viable contributor.”

Amit Harlalka, Director, ArcelorMittal Sustainable Solutions India, said that the company is committed to supporting the energy transition and securing clean power to decarbonise operations.

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Said Harlalka: "This partnership reflects our shared vision to accelerate green steel production and build a sustainable future for India."

To this end, in December last year, ArcelorMittal announced three new renewable energy projects in India totalling 1GW of solar and wind capacity.

The projects include the 36MW Amaravati project in Maharashtra, the 400MW solar plus 500MWh battery energy storage project in Bikaner, Rajasthan, and another 250MW wind, plus 300MW solar and 300MWh battery storage project in Bachau, Gujarat.

When complete, these three projects will double ArcelorMittal’s renewable energy capacity in India to 2GW and increase the Company’s total global renewable energy capacity to 3.3GW.

Suzlon currently has an installed capacity base of 4.5GW in Gujarat. The company is also looking to expand its EPC portfolio, with this announcement aligning strategically with this goal.

JP Chalasani, Chief Executive Officer of Suzlon Group, commented in a statement: "This project reflects Suzlon's strategic focus on the EPC segment, where we aim to gradually increase its share to 50% of our overall order book. We expect EPC to drive an increasing share of our upcoming order wins."

India’s steel ambitions

The country’s steel sector has the potential to expand rapidly due to the rising demand in construction, automotive, defence, and infrastructure sectors.

According to India’s Ministry of Steel, the country’s crude steel production and finished steel consumption have grown at an annual growth rate of 12% and 14%, respectively, over the last four years. This is significantly higher than the global growth rate, which is less than 1%.

The government’s policies are supporting this growth through the National Steel Policy, which is designed to meet rising demand. By 2030-31, the policy targets a crude steel production capacity of 300 million tonnes, and a significant increase in finished steel consumption per capita to 158kg, compared to the current 97.7kg.

Simultaneously, the country is also focusing on sustainability measures and has committed to reducing the carbon intensity of India’s economy by more than 45% by 2030 and achieving net-zero by 2070.

To support these ambitions, the Ministry has published a report titled Greening the Steel Sector in India: Roadmap and Action Plan, outlining the strategies for the green transition of the steel sector.

Furthermore, the Green Steel Taxonomy for India has been confirmed as a foundational tool for the development of the green steel market and will help drive investments in green technologies.