"Tata Steel Explores Nuclear Option for Green Steel, Considering 200 Small Modular Reactors"

Tata Steel, one of the world’s largest steel producers, is exploring the possibility of using nuclear energy to produce green steel. According to sources in the atomic energy sector, the company is assessing the feasibility of installing around 200 Bharat Small Reactors (BSRs), each with a capacity of 220 MW, totaling approximately 45 GW.

When approached for comment, Tata Steel stated, "There is nothing to talk about the subject now." The company, which operates four plants in India with a combined annual production capacity of 21.6 million tonnes of steel, is particularly interested in green steel production. This interest persists despite the fact that Tata Steel does not export significant amounts to Europe, where the 'carbon border adjustment mechanism' (CBAM) is expected to take effect on January 1, 2026. The CBAM imposes duties on certain imported goods, including steel, based on their greenhouse gas emissions during production, to prevent European domestic producers from being disadvantaged by imports.

Other steel companies are reportedly also considering BSRs, but Tata Steel appears to be particularly enthusiastic about the prospect.

In her Budget speech on July 23, Finance Minister Nirmala Sitharaman mentioned BSRs, indicating that the government would collaborate with the private sector to establish them.

While global discussions focus on 'small modular reactors,' India believes it already has expertise in this area, as the state-owned Nuclear Power Corporation of India (NPCIL) has been operating 15 pressurized heavy water reactors (PHWRs) of 220 MW each for decades.

Recently, R B Grover, a member of the Atomic Energy Commission, informed journalists that the 220-MW PHWRs are being modified, with the updated versions to be called BSRs, and the technology will be licensed to the private sector.

Sources indicate that Tata Steel may use electricity from the BSRs to power electrolysers for producing green hydrogen, which could then replace coking coal in steel production.

However, for this to happen, the Atomic Energy Act would need to be amended to allow private sector ownership and operation of nuclear power plants in India. It is understood that the government is considering suitable amendments to the act.

HBL