JSW DAC Initiatives for 2025: Key Projects, Strategies and Partnerships

JSW’s Decarbonization Pivot: Analyzing the Shift to Carbon Capture and DAC

From strategic blueprints to tangible pilot projects, Indian conglomerate JSW Group is navigating the complex landscape of industrial decarbonization. With steel and cement production forming the core of its business, the company’s approach to carbon capture, utilization, and storage (CCUS) and the more nascent Direct Air Capture (DAC) technology serves as a critical indicator for the entire hard-to-abate sector. An analysis of JSW’s activities reveals a deliberate and accelerating transition from high-level strategy to hands-on technological engagement, backed by significant capital and a network of global partners.

From Strategic Exploration to Targeted Implementation: JSW’s Carbon Capture Evolution

Between 2021 and 2024, JSW’s engagement with carbon capture was primarily in the strategic planning phase. The 2022 partnership with Boston Consulting Group (BCG) to formulate a decarbonization agenda for its massive Vijaynagar steel plant exemplifies this initial, roadmap-driven approach. This period was characterized by high-level assessments and collaborations with technology aggregators like SLB Capturi to understand the industrial decarbonization landscape. The focus was on building the “what” and “why” of its carbon strategy.

A clear inflection point occurred in 2025. The company’s focus has demonstrably shifted from planning to implementation and technological diversification. JSW’s transition plan now explicitly identifies Direct Air Capture (DAC) as a key strategy, moving beyond conventional point-source capture. This is further validated by the July 2025 report of a pilot partnership involving JSW, BHP, and Carbon Clean, signaling a move into physical testing. The variety of applications being explored has also expanded, from CCUS in its cement operations to the potential use of DAC for producing e-kerosene and hydrogen injection for green steel. This evolution from a singular focus on abating existing emissions to exploring carbon-tech for new value chains indicates a maturing perspective on broader adoption, presenting opportunities in synthetic fuels and green materials while posing the threat of spreading capital and focus too thinly across unproven technologies.

Capital Commitments to Decarbonization

JSW’s strategic shift is substantiated by significant financial commitments aimed directly at decarbonization and sustainable production. These investments, particularly those announced in 2024 and 2025, provide the financial backbone for its technology pilots and infrastructure overhauls, signaling to the market that its carbon capture ambitions are a core pillar of its future capital expenditure.

Table: JSW’s Decarbonization and Sustainable Technology Investments

Strategic Alliances for Carbon Technology

JSW has strategically moved from relying on consultants for roadmaps to forming partnerships with technology specialists and industry peers for project execution. This progression demonstrates a hands-on approach to de-risking and deploying complex carbon technologies across its operations.

Table: JSW’s Carbon Capture and Decarbonization Partnerships

From Indian Strategy to Global Pilots: The Geographic Expansion

Between 2021 and 2024, JSW’s decarbonization activities were geographically centered on India. The strategic partnership with BCG to create a roadmap for the Vijaynagar plant firmly rooted its initial efforts within its domestic operations. While investments were made in the US, the explicit carbon strategy work was India-focused. Post-2025, the geography of influence and partnership has expanded significantly. The pilot with UK-based Carbon Clean and Australian mining giant BHP, even if located in India, demonstrates a shift toward sourcing global technology and expertise. Furthermore, JSW’s mention in a Vietnam-focused transition finance report and in connection with the global e-kerosene market shows its strategy is now gaining international recognition. This shift from a domestic focus to engaging a global ecosystem of partners is critical for accessing leading-edge technology and de-risking implementation, making regions like Europe and North America key sources of technological innovation for its Indian operations.

A Trajectory from Paper to Pilot: Maturing JSW’s Technology Portfolio

The maturity of JSW’s carbon capture engagement has visibly accelerated. In the 2021–2024 period, the technology was largely at the strategic or pre-commercial stage. The BCG collaboration was a paper exercise to create a “decarbonization agenda,” and the partnership with SLB Capturi was to “advance” this agenda—both steps preceding physical deployment. This was a phase of evaluation and planning.

From 2025 onward, the portfolio has progressed into the pilot and application-specific stage. The Carbon Clean/BHP collaboration is a definitive move into piloting point-source capture. Simultaneously, DAC has graduated from a concept to a “key strategy” being explored for advanced applications like e-kerosene. This dual track—piloting mature CCUS while exploring nascent DAC—shows a sophisticated approach. While no technology is yet at commercial scale, the progression from strategic roadmaps to funded, partner-led pilots represents a crucial validation point for investors, demonstrating that JSW is moving down the technology readiness curve with tangible, real-world projects.

SWOT Analysis: JSW’s Carbon Capture Strategy Evolution

Table: JSW’s Carbon Capture SWOT Analysis

From Pilot to Plant: What to Watch in JSW’s Decarbonization Journey

The most recent data from 2025 signals that JSW is entering a critical execution phase. The year ahead will be defined by the transition from planning to performance. Market actors should closely watch three key signals. First is the progress and data from the Carbon Clean/BHP pilot; concrete metrics on capture rates and operational costs will be the first real validation of its chosen technology path. Second is the formalization of its DAC strategy. Having named it a key pillar, the next logical step is an announced pilot project or a dedicated technology partnership, which would signal a serious commitment to this next-generation technology. Finally, the deployment of the allocated $2 billion for decarbonization will be the ultimate tell. How this capital is divided between CCUS, DAC, and green hydrogen projects will reveal JSW’s true technological priorities and its timeline for scaling from pilot to commercial plant.

Frequently Asked Questions

What is the main change in JSW’s carbon capture strategy since 2025?
The primary change is a significant shift from strategic planning to hands-on implementation. Before 2025, JSW focused on creating roadmaps with consultants like BCG. From 2025, the company has moved to launching physical pilot projects (e.g., with Carbon Clean and BHP), allocating substantial capital ($2 billion for decarbonization), and explicitly identifying advanced technologies like Direct Air Capture (DAC) as a key part of its strategy.

What are the key technologies JSW is investing in for decarbonization?
JSW is pursuing a diverse technology portfolio that includes: 1) Point-Source Carbon Capture (CCUS) for its existing steel and cement operations; 2) Direct Air Capture (DAC) for new applications like creating e-kerosene; and 3) Green Hydrogen, particularly for hydrogen injection in its furnaces to produce green steel.

How is JSW financing its decarbonization pivot?
JSW is backing its strategy with significant capital. The company has allocated $2 billion specifically for decarbonization efforts as of June 2025. Additionally, it plans to invest up to ₹60,000 crore in a new green steel plant that will utilize sustainable technologies.

Why are partnerships with companies like Carbon Clean, BHP, and SLB important for JSW?
These partnerships are crucial for moving from strategy to execution. Collaborating with technology specialists like Carbon Clean and established players like SLB Capturi gives JSW access to proven and emerging carbon capture technologies. Partnering with industry peers like BHP helps de-risk expensive pilot projects and share knowledge, accelerating the deployment of complex solutions in the hard-to-abate steel sector.

What are the next major milestones to watch for in JSW’s decarbonization journey?
The three key developments to watch are: 1) The results and performance data from the Carbon Clean/BHP pilot project, which will validate its technology choice. 2) A formal announcement of a pilot project for Direct Air Capture (DAC), moving it from an ‘explored’ strategy to an active one. 3) The specific allocation of its $2 billion decarbonization fund, which will reveal its true investment priorities between CCUS, DAC, and green hydrogen.

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