Major India–Iceland Green Methanol Partnership Announced during the 3rd India–Nordic Summit
- Editorial Team
- 14 hours ago
- 4 min read
19 May 2026 | Oslo, Norway JSW Steel, Bharatia and Carbon Iceland International Sign Strategic MoU for Large-Scale eMethanol Development in India.
A major milestone in India’s industrial decarbonisation journey was announced in Oslo, Norway, during the 3rd India–Nordic Summit, as JSW Steel, Bharatia and Carbon Iceland International signed a strategic Memorandum of Understanding (MoU) to jointly explore the development of one of India’s most ambitious green methanol (eMethanol) projects.
The proposed initiative aims to establish a large-scale 300–600 KTPA green methanol platform in Maharashtra by converting industrial carbon dioxide (CO₂) emissions from steel manufacturing into low-carbon eMethanol using green hydrogen produced from renewable energy sources.
The signing ceremony was witnessed by the Prime Minister of Iceland, Hon. Kristrún Frostadóttir, alongside H.E. Benedikt Höskuldsson, Iceland's Ambassador to India, underscoring the growing strategic cooperation between India and Iceland in climate technology, industrial transition and sustainable fuel ecosystems.
The announcement came shortly after the bilateral discussions between Prime Minister Shri Narendra Modi and Prime Minister Kristrún Frostadóttir, where carbon capture and sustainable industrial collaboration were identified as important areas of future cooperation between India and Iceland.
The partnership also reflects the growing momentum generated through the India–EFTA Trade and Economic Partnership Agreement (TEPA), which is expected to unlock new pathways for technology collaboration, industrial partnerships and long-term green investments between India and EFTA member nations.
A New Model for Industrial Decarbonisation
The proposed project intends to utilise industrial CO₂ emissions generated from JSW Steel’s operations in district Raigad, Maharashtra, and transform them into eMethanol through an integrated carbon capture and utilisation (CCU) process.
Green methanol is increasingly emerging as one of the most promising low-carbon fuels globally, particularly for the shipping, chemicals and hard-to-abate industrial sectors. As international maritime regulations tighten and industries accelerate net-zero pathways, demand for scalable green fuel alternatives is expected to increase substantially over the coming decade.
The collaboration aims to establish a replicable industrial decarbonisation model capable of converting industrial emissions into economic opportunity while simultaneously supporting India’s broader energy transition ambitions.
The initiative will initially evaluate the utilisation of existing high-purity CO₂ streams from JSW Steel’s industrial operations while also assessing broader carbon capture integration opportunities across steel manufacturing processes.
Bringing Together Complementary Strengths
The partnership combines industrial scale, technology integration, project development and climate finance expertise across the three organisations.
JSW Steel brings large-scale industrial infrastructure and operational capabilities as one of India’s leading steel manufacturers. The company has consistently demonstrated leadership in sustainability and decarbonisation initiatives within the global steel sector.
Bharatia, operating at the intersection of policy, technology and finance, will support project development, implementation architecture, ecosystem integration and financing pathways. Through its Bharat Technology and Impact Accelerator platform, Bharatia focuses on accelerating deployment-oriented climate infrastructure and industrial transition initiatives across India and emerging markets.
Carbon Iceland International brings specialised expertise in carbon capture integration, eFuel production systems and industrial decarbonisation pathways. The organisation operates as a consortium-led platform combining global expertise across carbon capture, conditioning, eFuel production and scalable industrial implementation.
Together, the parties intend to evaluate a phased development pathway moving from technical validation and feasibility assessment towards potential future commercial-scale implementation.
Scaling Climate Solutions through India–Nordic Cooperation
The MoU represents more than a standalone industrial project. It reflects the emergence of a broader India–Nordic implementation platform focused on deployment, scalable climate infrastructure and long-term industrial transition.
The agreement was among the largest and most strategic partnerships announced during INDICA 2026 in Oslo, which brought together senior government officials, industry leaders, investors, climate technology developers and financial institutions from India and Nordic nations.
The collaboration demonstrates how cross-border partnerships can accelerate deployment of large-scale climate solutions by combining:
Industrial infrastructure from India
Advanced climate technologies from Nordic ecosystems
Long-term project development capabilities
Scalable financing and implementation models
The initiative is also expected to contribute towards:
Accelerating carbon capture and utilisation infrastructure
Supporting maritime and industrial decarbonisation
Expanding scalable eFuel production ecosystems
Creating replicable industrial transition models for the wider Global South
Positioning India as a leading deployment market for climate technologies
India’s Emerging Green Fuel Opportunity
India is increasingly positioning itself as a major future hub for green hydrogen and green fuel development. The country’s renewable energy expansion, industrial scale and growing policy focus on decarbonisation create significant opportunities for low-carbon fuel ecosystems.
Green methanol is expected to play a particularly important role in future maritime transition pathways due to its scalability, storage advantages and compatibility with emerging shipping fuel systems.
As global industries seek commercially viable pathways to reduce emissions, projects integrating carbon capture with renewable hydrogen and low-carbon fuel production are expected to become increasingly important.
The India–Nordic collaboration announced in Oslo reflects a growing shift from climate ambition towards industrial-scale implementation.
At a time when climate discussions increasingly demand execution rather than intent, partnerships such as these highlight how strategic international cooperation can help accelerate the transition from pilot concepts to scalable infrastructure deployment.
The MoU further reinforces the strengthening relationship between India and Nordic nations around climate innovation, clean industrial systems and sustainable infrastructure development — positioning both regions as important partners in the global transition towards low-carbon economies.