JSW Steel on Thursday said it has signed a pact with BHP and Carbon Clean to accelerate the deployment of carbon capture technology in the steelmaking process. India's steel sector accounts for 12% of India's greenhouse gas emissions, with an emission intensity of 2.5 tonnes of CO2 per tonne of crude steel compared to the global average of 1.9 tonnes of CO2 per tonne of crude steel, as per official estimates.

"JSW Steel, BHP and Carbon Clean are collaborating to accelerate deployment of carbon capture technology for steelmaking decarbonisation.

"Under the agreement, the parties will commence joint studies to explore the feasibility of Carbon Clean's CycloneCC modular technology to capture up to 1 lakh tonne per year of CO2 emissions," JSW Steel said in a statement.

There are several challenges with the adoption of carbon capture technology in the steel industry, including capital expenditure and ongoing operating costs, as well as the integration of new equipment into an existing operations site with space limitations.

On Monday, SAIL said it has signed an agreement with a global resources company to work on strategies for low-emission steel manufacturing technologies.