Tata Steel is exploring the possibility of using nuclear energy to produce green steel, considering the deployment of approximately 200 Bharat Small Reactors (BSRs), each with a capacity of 220 MW, according to a report by Hindu Business Line. This would potentially result in a total power generation capacity of 45 GW. Tata Steel, which operates four plants in India with a combined production capacity of 21.6 million tonnes of steel annually, is reportedly interested in adopting this technology to reduce carbon emissions from its steel production process.
The shift towards green steel comes as the European Union’s Carbon Border Adjustment Mechanism (CBAM) is set to take effect in 2026, imposing tariffs on imported goods, including steel, based on their associated carbon emissions. While Tata Steel exports limited quantities to Europe, the company is considering the environmental benefits and potential future regulatory requirements.
The development of BSRs is part of a broader initiative supported by the Indian government, which has expressed interest in partnering with the private sector for the deployment of small modular reactors (SMRs) as part of its energy transition strategy. In her recent budget speech, Finance Minister Nirmala Sitharaman emphasized the role of the private sector in advancing nuclear technologies, including BSRs.
The BSR technology, derived from India’s existing 220-MW Pressurised Heavy Water Reactors (PHWRs), is being redesigned by the Department of Atomic Energy and Tata Consulting Engineers. These reactors are intended to be modular, scalable, and aligned with post-Fukushima safety standards. According to Amit Sharma, CEO of Tata Consulting Engineers, the redesigned reactors will allow for standardization and efficient deployment across industries, particularly in steel, aluminum, copper, and cement production, which currently rely on captive thermal power plants.
India’s long-term goal is to achieve net-zero emissions by 2070, and SMRs are expected to contribute significantly to this effort. The government has plans to deploy 40-50 SMRs over the next seven to eight years, primarily to replace existing thermal power plants in energy-intensive industries.
To date, India’s Nuclear Power Corporation has constructed 16 PHWRs with a capacity of 220 MW, two 540-MW reactors, and two 700-MW reactors, with further projects under development. The proposed changes to the Atomic Energy Act would allow private ownership and operation of nuclear power plants, a necessary step for the broader deployment of BSRs.