Steel Ministry’s Initiative Towards Green Steel Policy and Decarbonization

Context:

The Steel Ministry is in the process of formulating a comprehensive green steel policy aimed at complete decarbonization of the steel industry. This holistic approach will cover various aspects including the manufacturing process, necessary skill sets, and financial support mechanisms. By focusing on green steel production, the ministry aims to reduce carbon emissions and promote sustainable practices within the steel sector.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

1. Green Steel: An Overview
2. Significance of Green Steel for the Indian Steel Industry
3. Status of Steel Production in India
4. Global and India’s Initiatives Towards Green Steel Production

Green Steel: An Overview

Definition:

• Green steel refers to the sustainable and environmentally friendly production of steel, aiming to significantly reduce greenhouse gas emissions, while potentially improving cost-efficiency and product quality compared to conventional steel production methods.

Need for Green Steel:

Environmental Impact of Traditional Steel Production:

• The conventional steel manufacturing process involves various methods such as blast furnaces, basic oxygen furnaces, and electric arc furnaces, which are significant contributors to global carbon emissions.
• The primary environmental concern arises from the high consumption of coal and coke in blast furnace operations, leading to substantial greenhouse gas emissions.

Growing Steel Demand and Environmental Concerns:

• With the global demand for steel expected to increase significantly throughout the 21st century, there is a pressing need to adopt more sustainable and low greenhouse gas (GHG) emission alternatives for steel production.
• India’s steel sector, for instance, accounts for 12% of the country’s total greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel, surpassing the global average of 1.9 tonnes of CO2.

Green Steel Production Methods:

Low-Grade Carbon Production Techniques:

• Carbon Capture and Storage (CCS): Involves capturing carbon dioxide emissions at the source and storing them underground or utilizing them in other industrial processes to prevent their release into the atmosphere.
• Green/Blue Hydrogen: Green hydrogen is produced using renewable energy sources through water electrolysis, while blue hydrogen is derived from natural gas with carbon capture technology. Both can serve as clean energy sources in steel production, reducing carbon emissions significantly.
• High Biomass Utilization: Utilizing biomass, such as agricultural residues and waste wood, as a renewable source of carbon in the steel production process to replace fossil fuels and reduce carbon emissions.
• Artificial Iron Units (AIUs): Involves the use of alternative iron units derived from sustainable sources, such as direct reduced iron (DRI) produced using hydrogen-based processes, to produce high-grade steel with lower carbon footprint.

Significance of Green Steel for the Indian Steel Industry

• The steel industry in India is a major contributor to carbon emissions due to its intensive energy and resource use.
• As per the commitments made at the COP26 climate change conference, the Indian steel industry needs to substantially reduce its emissions by 2030 and achieve net-zero carbon emissions by 2070.
• Green Steel production can play a crucial role in achieving these targets.

Status of Steel Production in India

• India is currently the second-largest producer of crude steel in the world, producing 120 Million Tonnes (MT) crude steel during the financial year 2021-2022.
• More than 80% of the country’s reserves are in the states of Odisha, Jharkhand, West Bengal, Chhattisgarh, and the northern regions of Andhra Pradesh. Important steel-producing centers are Bhilai (Chhattisgarh), Durgapur (West Bengal), Burnpur (West Bengal), Jamshedpur (Jharkhand), Rourkela (Odisha), and Bokaro (Jharkhand).
• India is also the second-largest consumer of finished steel in the world, consuming 106.23 MT of finished steel in 2021, preceded by China as the largest steel consumer, as per the World Steel Association.

Global and India’s Initiatives Towards Green Steel Production

Global Initiatives:

First Movers Coalition:

• Objective: Decarbonization of industrial sectors, including steel.
• Progress: The Coalition has expanded to include 55 companies and nine countries, all committed to sourcing a portion of their industrial materials and transportation from suppliers using near-zero or zero-carbon solutions.

Industrial Deep Decarbonization Initiative (IDDI):

• Objective: Encourage governments to report environmental data and promote the use of low-emission and near-zero emissions cement/concrete and steel in construction projects.
• Progress: Nine countries, including the U.S., have joined the initiative and are expected to declare their pledges soon.

SteelZero and ConcreteZero by The Climate Group:

• Objective: Corporate partnerships aiming for net-zero steel and low- and net-zero emission concrete production.
• Progress: SteelZero has 25 company partnerships, while ConcreteZero has 22, with commitments to sustainable production practices.

European Union:

• Objective: Host nearly 50 green and low-carbon steel projects by 2030.
• Progress: Driven by policies like the Carbon Border Adjustment Mechanism, the EU is on track to achieve its green steel production goals.

Sweden:

• Initiatives:
  • Hybrit: Supplied Volvo with the first coal-free “green steel.”
  • H2 Green Steel: Constructing a fossil fuel-free steel plant with a sustainable hydrogen facility.
• Progress: Both initiatives are making significant strides in promoting environmentally friendly steel production.

India’s Initiatives:

Green Steel Policy Development:

• Objective: Achieve complete decarbonization in the steel sector.
• Progress: The Steel Ministry is formulating a green steel policy that includes process definitions, required skills, and funding mechanisms. Thirteen task forces have been established to determine the modalities around green steel-making.

Exploring Biochar and Biomass in Steel-making:

• Objective: Reduce carbon emissions during steel manufacturing.
• Progress: The 14th task force has been set up to investigate the use of biochar or biomass as alternatives in blast furnaces.

Hydrogen-Based DRI Technology:

• Objective: Develop pure-hydrogen-based Direct Reduction of Iron (DRI) technology.
• Progress: A project report on hydrogen-based DRI technology is under scrutiny, and plans for a consortium-based pilot for a hydrogen-based DRI facility are being considered.

Funding and Support:

• Objective: Promote hydrogen usage in steel production.
• Progress: The Ministry of New and Renewable Energy has allocated ₹455 crore for piloting the use of hydrogen in steel-making, indicating a strong commitment to advancing green steel production in India.

-Source: The Hindu