Major India–Iceland Green Methanol Partnership Announced at India–Nordic Summit
A major industrial decarbonisation initiative was announced during the 3rd India–Nordic Summit in Oslo, where JSW Steel, Bharatia and Carbon Iceland International signed a strategic Memorandum of Understanding (MoU) to explore large-scale production of green methanol (eMethanol) in India.
The proposed project aims to develop a 300–600 KTPA eMethanol platform in Maharashtra by converting industrial carbon dioxide emissions from steel production into low-carbon methanol using green hydrogen produced from renewable energy sources. The signing ceremony was witnessed by Iceland’s Prime Minister Kristrún Frostadóttir and Iceland’s Ambassador to India, Benedikt Höskuldsson, highlighting growing climate cooperation between India and Nordic countries.
The initiative is expected to use captured CO₂ from JSW Steel’s operations in Raigad, Maharashtra, as a feedstock for conversion into eMethanol through carbon capture and utilisation processes. Green methanol is increasingly seen as a key low-carbon fuel for hard-to-abate sectors such as shipping and chemicals, with demand expected to rise as global emissions regulations tighten.
The partnership brings together JSW Steel’s industrial manufacturing capacity, Bharatia’s project development and financing expertise, and Carbon Iceland International’s capabilities in carbon capture integration and eFuel production systems. Together, the partners will assess a phased development pathway, moving from technical validation towards potential commercial-scale deployment.
According to the partners, the collaboration is intended to establish a replicable model for industrial decarbonisation that transforms emissions into usable fuels while supporting India’s broader clean energy transition. The project also aligns with growing momentum under the India–EFTA Trade and Economic Partnership Agreement, which aims to expand cooperation in technology and climate-related investment.
The announcement was among the key outcomes of discussions at the summit, which brought together government and industry leaders from India and Nordic countries to accelerate cooperation on climate technologies, industrial transition and sustainable energy systems.
The initiative reflects India’s growing role in green hydrogen and low-carbon fuel development, supported by expanding renewable energy capacity and industrial-scale demand. Green methanol, in particular, is expected to play an increasingly important role in maritime decarbonisation due to its storage advantages and compatibility with emerging shipping fuel systems.
The MoU underscores a broader shift from climate commitments towards large-scale implementation, positioning India and Nordic partners as key actors in the global deployment of industrial carbon capture and clean fuel technologies.
