ArcelorMittal Unveils $900 Million Green Energy Blitz in India; Targets 2GW Capacity by 2028
By Axel Miller | 22 Dec 2025
ArcelorMittal has announced a definitive $900 million (approx. ₹7,500 crore) investment to develop three large-scale renewable energy projects across India. The move marks the second phase of the steelmaker’s aggressive decarbonization roadmap, designed to insulate its joint venture, AMNS India, from volatile energy costs and looming carbon taxes.
The fresh capital will fund 1 gigawatt (GW) of nominal solar and wind capacity, effectively doubling ArcelorMittal’s renewable footprint in the country to 2 GW. This follows the successful commissioning of its initial 1 GW project in Andhra Pradesh earlier this year.
Strategic Deployment Across Three States
The new capacity is strategically distributed to leverage state-specific weather advantages and grid infrastructure, with phased commissioning planned between 2027 and 2028:
- Rajasthan (Bikaner): A massive 400 MW solar facility integrated with a 500 MWh battery energy storage system (BESS). Targeted for completion by H1 2028, this unit focuses on stabilizing supply during peak manufacturing hours.
- Gujarat (Bachau): An integrated “hybrid cluster” combining 250 MW of wind, 300 MW of solar, and a 300 MWh battery system, also scheduled for H1 2028. Notably, this project will operate in tandem with a separate 550 MW project being developed directly by AMNS India in the same region.
- Maharashtra (Amravati): A 36 MW solar project expected to come online first, by H1 2027.
Powering ‘Green Steel’ Ambitions
Once fully operational in 2028, these assets will supply electricity exclusively to AMNS India (ArcelorMittal Nippon Steel India), the 60:40 joint venture with Japan’s Nippon Steel. The initiative is critical for lowering the “Scope 2” emissions of the Hazira steel plant, which is currently undergoing a massive expansion to 15 million tonnes per annum.
Aditya Mittal, CEO of ArcelorMittal, emphasized the dual benefits of the strategy: “We are doubling our renewable energy capacity in India, providing a secure supply of clean energy to our Indian steelmaking operations while strengthening our global footprint in clean power. These investments show how climate responsibility and business performance can go hand in hand.”
Global Context: The 3.3 GW Vision
India has emerged as the anchor of ArcelorMittal’s global energy transition. When combined with ongoing projects in Brazil and Argentina, the company’s captive renewable portfolio is set to reach 3.3 GW. This vertical integration is seen as a hedge against future regulatory mechanisms like the European Union’s CBAM (Carbon Border Adjustment Mechanism), which will penalize carbon-intensive steel imports starting in 2026.
Summary
ArcelorMittal will invest $900 million to build three renewable energy projects in Rajasthan, Gujarat, and Maharashtra, adding 1 GW of capacity backed by extensive battery storage. Scheduled for completion between 2027 and 2028, these projects will double the company’s Indian renewable assets to 2 GW, directly powering AMNS India’s steel operations to reduce carbon intensity and energy costs.
FAQs
Q1: What are the specific locations and capacities of the new projects?
- Bikaner, Rajasthan: 400 MW Solar + 500 MWh Battery.
- Bachau, Gujarat: 250 MW Wind + 300 MW Solar + 300 MWh Battery.
- Amravati, Maharashtra: 36 MW Solar.
Q2: When will these projects be operational?
The Maharashtra project is targeted for H1 2027, while the larger Rajasthan and Gujarat facilities are scheduled for completion by H1 2028.
Q3: How does this impact AMNS India’s total green power usage?
Combined with the existing 1 GW Andhra Pradesh project (commissioned in 2025), these new additions will bring the total dedicated renewable capacity to 2 GW, covering a significant portion of the Hazira plant’s electricity needs.
Q4: Why is Battery Energy Storage (BESS) included?
Steel production requires 24/7 power. The 800 MWh of combined battery storage (500 MWh in Rajasthan + 300 MWh in Gujarat) allows the company to store solar energy generated during the day and use it during night shifts, ensuring “Round-the-Clock” (RTC) green power supply.
Q5: Is AMNS India building its own projects too?
Yes. In parallel to ArcelorMittal’s $900M investment, AMNS India is developing its own 550 MW renewable project in Bachau, Gujarat, which will share infrastructure with the new ArcelorMittal cluster.