Synopsis

NMDC shares rallied up to 2% on Monday to Rs 80.85 after setting a target to achieve net-zero operational emissions by 2047. Covering Scope 1 and Scope 2 emissions, the roadmap spans three phases focusing on renewable energy, fleet electrification, energy efficiency, and low-carbon logistics to reduce operational emissions by 90%.

NMDC shares rise 2% on 2047 net-zero operational emission plan

Shares of NMDC rallied up to 2% on Monday to a day's high of Rs 80.85 after the company announced that it has set a target of achieving net-zero operational emissions by 2047, covering Scope 1 emissions from direct fuel consumption and Scope 2 emissions associated with electricity use.

According to a filing with the exchange, the company has taken the decision as part of its commitment to progressively reduce the carbon footprint of its operations and transition towards lower-carbon mining practices.

Also Read | NMDC sets Net Zero target for operational emissions by 2047

The company said that under its net-zero roadmap, it has identified six key strategies: energy efficiency, renewable energy integration, electrification of its fleet, adoption of low-carbon fuels, Carbon Capture, Utilisation and Storage (CCUS), and demand-side management.

The net-zero roadmap has been divided into three phases. The short-term phase will cover FY 2026 to FY 2030, followed by the medium-term phase from FY 2030 to FY 2040, while the long-term phase will run from FY 2040 to FY 2047.

Also Read | NMDC looks to hit 60 MT iron ore production mark this fiscal: Chairman

The company plans to progressively implement the identified measures across these three phases, with energy efficiency, renewable energy adoption and electrification expected to form key components of the initial transition, followed by deeper decarbonisation measures and emerging technologies in subsequent phases.

The company has set an overall target of a minimum 90% reduction in operational emissions as part of its net-zero pathway, with the remaining emissions to be addressed through offsetting measures as the roadmap progresses.

Going beyond Scope 1 and Scope 2, the company's logistics infrastructure is also expected to contribute to its decarbonisation efforts. The upcoming slurry pipeline project is expected to provide a greener downstream transportation solution by reducing dependence on conventional transportation and associated warehousing requirements.

Further, NMDC plans to increase the movement of iron ore through rail freight, supported by the doubling of railway lines and other supply infrastructure being developed around its operations. Greater use of rail transportation is expected to help reduce the carbon intensity associated with the movement of minerals.

NMDC has already undertaken several initiatives aimed at increasing the share of renewable energy and reducing dependence on conventional energy sources. These include a 10.5 MW wind energy facility at Chitradurga and solar power installations across its projects.

In the last one month, shares of NMDC fell 5% and are down nearly 4.09% in the current calendar year. In the last one year, the stock has gained 4.85%. The stock has gained 67.24% in the last three years and 74.32% in the last five years.

Disclosure: This article has been written by Surbhi Khanna, who is not a SEBI-registered Research Analyst or an investment advisor . Surbhi Khanna does not hold any financial interest in Economic Times as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.

Read More News on

...moreless

...moreless