Tata Steel, one of the world’s leading steel manufacturers, is exploring the possibility of utilizing nuclear energy to produce green steel. According to sources within the atomic energy industry, the company is assessing the feasibility of deploying around 200 Bharat Small Reactors (BSRs), each with a capacity of 220 MW, totaling approximately 45 GW.
When approached for comment, Tata Steel stated that “there is nothing to discuss at the moment.” Insiders suggest that Tata Steel is highly interested in green steel production, despite its limited exports to Europe, where the ‘carbon border adjustment mechanism’ (CBAM) is expected to be implemented on January 1, 2026.
The CBAM imposes a duty on certain imported goods, including steel, based on the greenhouse gas emissions associated with their production, aiming to level the playing field for European manufacturers against imports. Other steel producers are reportedly also considering BSRs, but Tata Steel is particularly enthusiastic about the potential.
Government Collaboration with Private Sector
In her Budget speech on July 23, Finance Minister Nirmala Sitharaman highlighted the government’s intent to collaborate with the private sector in establishing BSRs. While the global conversation revolves around ‘small modular reactors,’ India sees itself as a pioneer in this field, given that the state-run Nuclear Power Corporation of India (NPCIL) has operated 15 pressurized heavy water reactors (PHWRs) of 220 MW each for many years.
Recently, R. B. Grover, a member of the Atomic Energy Commission, informed journalists that the 220-MW PHWRs are being upgraded, with the modified versions to be known as BSRs. The government plans to license this technology to the private sector.
Sources indicate that Tata Steel is likely to use electricity generated by BSRs to power electrolysers for green hydrogen production, which could then replace coking coal in steelmaking. However, the implementation of this plan would require amendments to the Atomic Energy Act to permit private ownership and operation of nuclear power plants in India. The government is reportedly considering the necessary changes to the legislation.
