Explained: What Is Green Steel And How Can It Reduce Carbon Emissions In The Steel Industry?

The Ministry of Steel aims to reduce carbon emissions in the steel industry by promoting Green Steel. The steel industry is a major consumer of energy and resources, and it also produces a significant amount of carbon dioxide (CO2) emissions.

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Given the goals set forth at the Conference of the Parties (COP26) on climate change, the Indian steel sector must take measures to significantly decrease its CO2 emissions by 2030 and strive to achieve net-zero carbon emissions by 2070.

What is Green Steel?

Green Steel refers to the production of steel without relying on fossil fuels. Instead, alternative low-carbon energy sources such as hydrogen, coal gasification, or electricity are used in place of traditional coal-fired plants, which results in reduced greenhouse gas emissions, lower costs, and improved steel quality.

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The use of low-carbon hydrogen, including blue and green hydrogen, can further decrease the carbon footprint of the steel industry.

In order to make primary production processes cleaner, various alternatives are being considered. One such alternative is Carbon Capture, Utilization, and Storage (CCUS) which aims to reduce carbon emissions.

Another alternative is using low-carbon hydrogen as a substitute for conventional energy sources. Direct electrification through the electrolysis of iron ore is another method for cleaner primary production processes.

Steel production in India

India is currently one of the leading producers of crude steel in the world, standing as the second largest producer with a production of 120 Million Tonnes (MT) during the financial year of 2021-2022.

The majority of the country's steel reserves, more than 80%, are located in the states of Odisha, Jharkhand, West Bengal, Chhattisgarh and the northern regions of Andhra Pradesh.

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These areas are important steel-producing centres and are home to some of the largest steel factories in the country, including Bhilai (Chhattisgarh), Durgapur (West Bengal), Burnpur (West Bengal), Jamshedpur (Jharkhand), Rourkela (Odisha), and Bokaro (Jharkhand).

In addition to being a significant producer of crude steel, India is also one of the largest consumers of finished steel. In 2021, India consumed 106.23 MT of finished steel, making it the second largest consumer in the world, just behind China, according to the World Steel Association.

The country's growing steel demand is driven by its growing economy, infrastructure development and increasing population.

Government steps to promote decarbonisation in steel industry

The government has taken various steps to promote decarbonisation in the steel industry. The Steel Scrap Recycling Policy, 2019 increases the availability of domestically generated scrap to reduce the use of coal in steel production.

The National Green Hydrogen Mission, launched by the Ministry of New and Renewable Energy (MNRE), focuses on green hydrogen production and usage, with the steel sector being a stakeholder.

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The Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules from September 2021 aim to increase scrap availability in the steel sector. The National Solar Mission, launched in January 2010 by the MNRE, promotes the use of solar energy and reduces emissions in the steel industry.

The Perform, Achieve and Trade (PAT) scheme incentivize the steel industry to reduce energy consumption. The steel sector has also adopted the Best Available Technologies globally in modernization and expansion projects.

JapanĄ¯s New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement have been implemented in steel plants.