Indian Institute of Management

Lucknow

JSW Challenge 2023

National Winner Case Deck
TECHNOLOGY STRATEGY FOR
SUSTAINABLE STEEL

TEAM HELLEVATORS
 TEAM HELLEVATORS – IIM LUCKNOW

RAJESH AAYUSH DEEKSHA

KUMAR SAXENA KHATWANI

Specialization: Strategy, Operations Specialization: Strategy, Operations Specialization: IT, Operations

& IT & Finance

Dual degree (B.tech + M.tech) in Dual degree (B.tech + M.tech) in B.tech in IT from NIT Allahabad
Mining engineering from IIT (ISM) Aerospace engineering from IIT (2016-20)
Dhanbad (2013-18) Kharagpur (2013-18)
Driving a sustainable future: Harnessing enablers to combat the emissions challenge across entire value chain, with
real-time monitoring and carbon offset via our integrated dashboard
CO2 emission (per ton of steel) Our Digital Solution: Sustainability Dashboard to track emissions across value
10% chain with integrated Carbon offsetting, Scrap monitoring & CCUS monitoring
2.55 tonnes (INDIA) Of Total CO2 Emission
1.85 tonnes (GLOBAL) from Steel Sector
Truck, Rail, Pipeline, Ship Truck, Rail, Ship
CBAM “Carbon Tax” by EU on Steel Imports
ISSUES

• Introduced in May 2023, applied on steel imports having higher carbon

foot-print than EU-ETS Benchmark Raw Material INTEGRATED Customers
• Will make Indian Steel exports uncompetitive, resulting in a profit (Iron Ore, Coking Coal, etc. STEEL PLANT (End Users, Dealers etc.)
decrease of $60-165/MT between 2026-2034

Metallurgical coke accounts for ~20% of total cost of Steel Making

• Import dependency • Supply-Chain disruption • Price fluctuation

Scrap Usage SUSTAINABILITY Carbon Offsetting & Capture

Internal + External DASHBOARD Internal + External
EMISSIONS MONITORING ACROSS THE VALUE-CHAIN
TARGETS

Net Zero 42% reduction 50% Scope 1 : Direct emissions from Scope 2 : Emissions from the Scope 3 : Emissions from the activities
sources owned or controlled by JSW – production of energy source used by that JSW is indirectly responsible for,
by 2070 by 2030 by 2047 Mines, BF Operations, Mills etc. JSW for its operations up and down its value-chain
Ministry of Emission target India’s Scrap
Carbon Offsetting & Capture (Internal + External) Scrap Usage (Internal + External)
Steel, India JSW Group usage Target
• Track & Manage internal carbon offsetting and capture • Extensively track Scrap/Waste generated from
processes (Tree Planting + CCUS) processes across the value chain (CRM, HRM, Scrap
• Onboard external Carbon Positive NGOs for offsetting CO2 produced at customers’(factories) end)
emissions through Afforestation and Investment in • Onboard 3rd party Scrap aggregators to source scrap
climate action projects. from landfills & Users/Factories
ENABLERS

• Onboard other Carbon Negative and Positive firms on the • Track and Manage Scrap Usage to increase its
dashboard to create a market-place for Carbon Credits percentage in steel making process

Resource Green Scrap Extensive

Gen-AI Based Recommendations Improved Visibility & Reporting
efficiency Hydrogen Usage Monitoring To improve sustainable practices across the For intervention by top-management and
value-chain compliance requirements
Sustainability Dashboard: Create data driven tool leveraging IoT, Cloud and GenAI for comprehensive tracking and
reporting, unlocking value for all stakeholders
VALUE PROPOSITIONS SUSTAINABILITY DASHBOARD
MEASURE, MANAGE and REPORT

Sustainability Dashboard Customization options

Plant-level Aggregate-level Choose from required
EMISSIONS Granularity of detail, plant
Standardise & Navigation menu Plant Period- From Period- To
Data Unification Vijayanagar Works 01-04-2022 12-04-2022 location and period
Automate • Choose from range of
across plants & COMPLIANCE
emission data options to navigate the Day-wise emissions Day-wise CCUS tracker Current Scope 1 emissions
geographies
collection dashboard DOCUMENTS Emissions overview
• Collates important
• Display snapshots of
insights including option SCRAP
PRODUCED emissions during the
to view scrap
selected period
generation data, REPORTS
Current Scope 2 & 3 emissions Track Carbon Offset Scrap to iron ore ratio • Select on a tile to view
emissions tracker and
Simplified Quick statistics in detail
important alerts ALERTS
Self Partners Current Target

Internal tracking & compliance tracking & • Generate alerts for

reporting data accessibility emissions crossing the
Emission alerts target level
• Generate alerts when
emissions increase Generate Summary
Reports generation
above target level Emissions from truck transport of Iron Ore exceeds Generate summary, pollution
Generate Pollution Report
emission targets by 12.8%
• Provide Act now: Explore Rail Transport
reports for State Pollution
Generate Sustainability Report
recommendations Control Board, and
Diagnostic & Easy
using Gen AI to reduce sustainability reports
Predictive Alerts reporting for
emissions
monitoring emissions government approvals

IMPLEMENTATION VALUE FOR CUSTOMERS

Automated data collection Data visualization on BENEFITS
Data Analysis
& consolidation Sustainability Dashboard • Increases
transparency
• Enhances customer
Scan QR code Get redirected View engagement & brand
Cloud based Generate Track emission, from product to JSW website sustainability equity
IOT Edge analytics ML to identify emission CCUS, carbon packaging & report made by • Exhibits corporate
Sensors Computing patterns metrics offset, scrap responsibility
software JSW Banners dashboard
Green Hydrogen in Steel Making: Implement green hydrogen powered DRI + EAF solution leveraging India’s
technological expertise in renewable energy to produce cost effective sustainable steel
Steel Making Processes in India (% Share) India is at the Forefront of Renewable Energy Generation
• H2 can be used to
BF-BOF • Metallurgical coke used as reducing agent 43% 179 GW
replace Natural 4th $0.037/kWh
Gas, SynGas and Levelized Cost of Electricity (LCOE) Renewable Capacity
• Non-coking coal, Natural Gas, SynGas or CO gas as
Globally
Coke-oven gas used as reducing agent in total renewable of Renewable Energy (Solar) (Fastest Growing in the
DRI - EAF/IF 32% reducing agent World)
power capacity (Lowest In the World)
• Electricity for EAF
• Used in Combination with EAF/IF can be generate India’s technological expertise in Renewable Energy Generation with the lowest
EAF (Scrap using H2 fuel cell. levelized costs, can be leveraged to utilize Renewable power in Green H2
• Electricity used to melt the scrap/recycled
Based) Iron 25% Generation in a cost effective and efficient manner
Electricity Generation Green Hydrogen Production PROCESS
H2 Storage Steel Production Using H2 Reduced DRI + EAF
GREEN HYDROGEN POWERED STEEL MAKING

(PV Array/Wind Turbine) (SOEC Electrolyzer) HIGHLIGHTS

Lump Ore Pellets

Short Term: H2 may be bought
from Hydrogen producers.
Long term: Renewable Energy
Capability needs to be built
Water H2 H2
Renewable Energy
Reduction
To Generate Green Hydrogen

Electricity H2
DRI
H2 Storage
Renewable Energy Electrolysis
Generation H2 Scrap Recycled Water
O2 From Fuel-Cell & Waste-water treatment
Industrial O2 recovered H2O
from Electrolysis is refined
to medical grade O2 and
supplied to Hospitals Electric Arc Furnace CRUDE STEEL
Refinery H2 Fuel Cell
Hospitals in (EAF)
Township Medical Oxygen
As a By-product of H2 generation
Green Hydrogen future potential: Partner with technology enablers to decarbonize JSW’s current 27.7 MTPA crude
steel capacity through a total solar power installation of 16.7 GW with a phase-wise implementation
KEY TECHNOLOGY Potential Steel Production Using Green Hydrogen Route (Solar Power)
ENABLERS
1 It takes 40—44 kWh of Electricity to Produce 1 Kg of H2 though Electrolysis via SOEC Electrolyzer

SOLAR
2 50 Kg of Green Hydrogen is required to produce 1 Ton of Crude Steel
Assumptions
Solar/Wind Energy 3

WIND
Average 10 Hrs. of daily output from solar power plant, 3650 Hrs. of output in a Year
Equip. Providers
4 SOEC Electrolyzer with 80% Efficiency

Process To Generate To Produce To Make

Hydrogen
Suppliers (For a 10 GW
Solar Plant) 10 GW 36500 GWh 0.83 MT 16.6 MT
India’s 1st Green Hydrogen Solar Plant Electricity Annually Hydrogen Annually Crude Steel Annually
Electrolyser Gigafactory
To completely De- Building such Solar Capacity
Carbonize JSW’s
27.7 MTPA 16.7 GW would require phase-wise
Electrolyser Will Require
Provider Operations Crude Steel Capacity Solar Power Capacity implementation across 5-6 Years

POTENTIALS OF H2 IN STEEL MAKING LIMITATIONS OF H2 IN STEEL MAKING

Lower Emissions Energy Efficiency Residue O2 High-Quality Steel High Input Costs Infra. Challenges Safe Handling Water Scarcity
Study by McKinsey Acc. to the IEA, direct The O2 captured as Direct reduction Transitioning to H2- H2 is difficult to Producing 1 Kg of H2,
produces high-quality Using H2 to produce
found that H2 could reduction using H2 residue from based steel requires handle in the plant requires 9 Kg of H2O.
Steel is currently much
reduce GHG can reduce energy Electrolysis can be iron that is purer and extensive modification due to its Water Scarcity in the
has lower levels of more costly in India
emissions by up to consumption by refined to produce to plants which can be flammability . Strict country can be a
than using traditional
95% from the steel ~20% compared to medical grade O2 impurities, resulting in costly & time- Safety measures are challenge for Green H2
higher-quality steel. methods
industry traditional BF for hospitals consuming. required production
Making processes future ready: Integrate GenAI in steel making process across the value-chain to improve demand
forecast, reduce process waste and support workers in maintenance activities
Demand Forecasting & Inventory Process Improvement & Quality “KaushalGyan” – GenAI based
Management control Assistant

Analyze past sales, Use GenAI to optimize machine input GenAI-driven app that
market trends, inventory settings integrating with HSM II to improves staff
& supplier data for detect & analyze root cause experience by providing
predictive modelling & occurrences to suggest process information at their
accurate inventory levels improvements fingertips

Industry 24 X 7

SOLUTION
best support
ISSUES

ISSUES
practices to staff

Innovations
Knowledge GenAI
Inaccurate High carrying cost Time-taking defect Redundant machine across
management
forecasting models & obsolete inventory analysis inputs industry

PROCESS FLOW IMPACT

SOLUTION

IMPACT
Analyze existing
machine inputs
Data mining Predictive
to identify GenAI modelling Data-driven Improved Enhanced
patterns & for optimal 2 Track & log defects,
Improved Enhanced
Decision making safety User training
relations inventory analyze root cause
quality control efficiency
USS MineMind GenAI
3

USE CASE
Change machine
IMPACT

First gen AI-driven application powered

inputs, reducing defects
by Google AI that aims to simplify
equipment maintenance by providing
Optimal inventory Waste Cost 4 Improvement in Predictive Cost
optimal solutions for mechanical
problems, saving time and money, and
levels reduction Savings process efficiency Maintenance Savings ultimately improving productivity
Technology adoption: Implement strategies across key operational levers to drive technology integration with focus on
alleviating negative impact on employees with cross training, sequential implementation and On-ground assistance
TRANSITION FRAMEWORK FOR TECHNOLOGY INTRODUCTION STRATEGIES FOR INTERVENTION

Technology Introduction 1 Cross training

Identify employees Cross train them for

who might lose jobs due other jobs with better
to technology person-job fit

Impact on SOCIAL Benefits: maintain employee trust, enhance

employees FACTORS adaptability
Skills Fear of Loss of Resistance
gap job loss autonomy to change 2 Sequential implementation
Next launch for other
Launch technology for
sites and implement
single plant and
best practices learnt
optimize the strategy
Social Factors from pilot plant
PHYSICAL Benefits: identify & address challenges at small
Key SETTING
intervention Organizational Physical scale, smooth transition
Arrangements Setting
areas
3 Increase transparency around digitalization
Technology Explain the working
Collect and incorporate
behind technology to
employee feedback for
employees during
technology integration
training
TECHNOLOGY Benefits: alleviate employee concerns, infuse
sense of ownership
Result of CHANGE IN BEHAVIOR
intervention INCREASED ACCEPTANCE OF TECHNOLOGY 4 On-ground assistance
Create on-ground team- Team will assist
“Saarthi team” with employees at on job
Organizational technology proficient challenges for initial 3
& Individual Organizational Individual workers months post training
improvement Performance Development ORGANIZATIONAL Benefits: boost employee confidence, reduce
ARRANGEMENTS
frustration
 Indian Institute of Management
Lucknow

Thank You
 REFERENCES

1. Scrap usage in primary steel production to grow from 15% to 50% by 2047: Scindia (LIVE MINT)
https://www.livemint.com/news/india/scrap-usage-in-primary-steel-production-to-grow-from-15-to-50-by-2047-scindia-
11675528277329.html

2. Renewable power generation costs in 2022: IRENA

https://mc-cd8320d4-36a1-40ac-83cc-3389-cdn-endpoint.azureedge.net/-
/media/Files/IRENA/Agency/Publication/2023/Aug/IRENA_Renewable_power_generation_costs_in_2022.pdf?rev=cccb713bf8294cc
5bec3f870e1fa15c2

3. U. S. Steel Aims to Improve Operational Efficiencies and Employee Experiences with Google Cloud’s Generative AI
https://investors.ussteel.com/news-events/news-releases/detail/639/u-s-steel-aims-to-improve-operational-efficiencies-and

4. JSW Steel Annual Reports : 2023

https://www.jswsteel.in/investors/jsw-steel-financials-annual-reports

5. Hydrogen Economy: Wikipedia

https://en.wikipedia.org/wiki/Hydrogen_economy#:~:text=However%2C%20current%20best%20processes%20for,50–
55%20kWh%20of%20electricity.

6. Path to sustainability- Green Steel Report – IndusInd Bank

https://indie.indusind.com/content/dam/indusind-corporate/generic/Green-Steel-Indias-Overview-webview-1.pdf