JSW Steel, Bharatia and Carbon Iceland International sign MoU for green methanol project in India

JSW Steel, Bharatia and Carbon Iceland International have signed a memorandum of understanding (MoU) to explore the development of a large-scale green methanol project in Maharashtra, India.

The proposed project aims to establish a production platform with a capacity of 300,000 to 600,000 tonnes per annum (KTPA) of eMethanol by converting industrial carbon dioxide emissions from steel manufacturing into low-carbon fuel using green hydrogen produced from renewable energy.

Carbon capture and eMethanol production

The initiative will assess the use of high-purity CO₂ streams generated at JSW Steel’s operations in Raigad district, Maharashtra. The captured carbon dioxide would be combined with green hydrogen through a carbon capture and utilisation (CCU) process to produce eMethanol.

The announcement was made during the India–Nordic Summit in Oslo, Norway, and follows recent discussions between Indian Prime Minister Narendra Modi and Icelandic Prime Minister Kristrún Frostadóttir on climate technology cooperation and industrial decarbonisation.

The signing ceremony was attended by Icelandic officials including Ambassador Benedikt Höskuldsson.

Focus on industrial decarbonisation

Green methanol is being increasingly evaluated as a low-carbon fuel for sectors including shipping, chemicals and heavy industry. Demand for alternative fuels is expected to grow as emissions regulations tighten and companies pursue decarbonisation targets.

The project partners said the initiative is intended to support the development of scalable industrial transition models by linking carbon capture systems with renewable hydrogen and fuel production.

JSW Steel will contribute industrial infrastructure and operational capabilities, while Bharatia will support project development, financing pathways and ecosystem integration through its Bharat Technology and Impact Accelerator platform.

Carbon Iceland International will provide expertise in carbon capture integration, eFuel production systems and industrial implementation.

India–Nordic climate collaboration

The agreement also reflects broader cooperation between India and Nordic countries under the India–EFTA Trade and Economic Partnership Agreement (TEPA), which aims to support technology transfer, industrial partnerships and climate-focused investment.

The companies said the project will initially focus on feasibility studies and technical validation before evaluating pathways for commercial-scale deployment. The initiative is also expected to contribute to the development of carbon capture infrastructure, eFuel ecosystems and industrial decarbonisation strategies that could be replicated in other emerging markets.