Tata Steel Ushers in a New Era of Energy Innovation

In a landmark development for India’s energy-intensive metallurgical sector, Tata Steel announced the implementation of the country’s first Waste Heat Recovery project within the ferrochrome industry. The project will be commissioned at the company's state-of-the-art Ferro Alloys Plant in Athagarh, Odisha, under its Ferro Alloys and Minerals Division. This initiative not only strengthens Tata Steel’s sustainability credentials but also sets a powerful precedent for environmentally conscious industrial operations across India.

The project was formalized through a Memorandum of Understanding signed in Bhubaneswar on May 30, 2025, with Comfit Enersav Private Limited and Yantra Harvest, both pioneers in energy-saving technologies. It aims to repurpose the vast amounts of heat released during ferrochrome smelting operations to reduce dependence on fossil fuels, particularly furnace oil, used in the drying of chrome ore fines.

Strategic Alliance for Smart Energy Deployment

The tripartite collaboration brings together three entities with complementary expertise: Tata Steel, a global steel manufacturing leader with a strong commitment to responsible production; Comfit Enersav, a thermal engineering specialist known for WHR and energy optimisation systems; and Yantra Harvest, an innovator in industrial sustainability solutions.

Pankaj Satija, Executive In-Charge of FAMD at Tata Steel, signed the agreement with Ganesh Bhat, Technical Director at Comfit Enersav, and Gaurang Bhatt, Technical Director at Yantra Harvest.

“We all are aware about interconnectedness of energy, climate change, water and biodiversity,” said Satija. “With this process of heat integration, we are capturing the value which would otherwise be released to the atmosphere. This partnership marks a significant step forward in our journey towards sustainable operations with reduction in CO₂, higher energy efficiency and lower energy cost.”

Capturing Thermal Energy from Smelting Operations

The WHR system will harness high-temperature exhaust gases generated during the smelting of chrome ore in the submerged arc furnaces. Traditionally, this thermal energy is discharged into the atmosphere. However, through advanced engineering and flue gas handling systems, the WHR unit will divert this waste heat to specially designed chrome ore dryers.

Currently, chrome ore fines are dried using furnace oil, a costly and carbon-intensive fuel. By replacing this process with WHR-powered drying, Tata Steel expects to eliminate a substantial quantity of furnace oil use annually, resulting in both financial and environmental gains.

Initial projections indicate annual savings of around ₹3 crore ($360,000), excluding potential gains from avoided carbon penalties or emissions credit trading in the future.

Environmental Dividends: Slashing Emissions, Boosting Efficiency

The WHR system is expected to drastically reduce direct CO₂ emissions from the Athagarh plant. In ferroalloy manufacturing, drying accounts for a significant portion of auxiliary energy consumption. By replacing furnace oil, which emits approximately 3.15 kg of CO₂ per litre burned, with recycled heat, the company will significantly shrink its carbon footprint.

Though the company has not released precise emissions estimates, experts suggest potential reductions of 500 to 800 metric tons of CO₂ annually. The plant may also see reductions in volatile organic compounds, particulate matter, and thermal discharge to the local environment, supporting biodiversity and air quality.

This directly supports Tata Steel’s broader sustainability goals and aligns with India’s national decarbonization targets under the Paris Agreement and Long-Term Low Emissions Development Strategy (LT-LEDS).

A First-of-Its-Kind Performance-Based Energy Model

The WHR project will be implemented under the Energy Savings Companies model, following a Build, Own, Operate framework. Under this structure, Comfit Enersav and Yantra Harvest will fund and install the system, then operate it and recover their investment through a share of the energy cost savings over an agreed period.

Such a model ensures a performance-linked payout mechanism: if the system underperforms, payments are reduced, aligning incentives between technology providers and the plant operator. This also minimizes financial risk for Tata Steel, which benefits from immediate energy gains without incurring capital expenditure.

The BOO structure is increasingly popular in energy infrastructure and is expected to gain more traction as industries transition to cleaner, low-carbon operations.

Key Takeaways

• Tata Steel, Comfit Enersav, and Yantra Harvest are jointly implementing India's first WHR project in the ferrochrome sector at the Athagarh plant in Odisha.

• The system will recover furnace waste heat to dry chrome ore fines, replacing costly furnace oil and saving around ₹3 crore ($360,000) annually.

• Implemented under a Build, Own, Operate model, the project enhances energy efficiency, reduces CO₂ emissions, and sets a new sustainability benchmark in India's heavy industry.