Green Steel and Its Production in India – A Sustainable Revolution

Written By: Editor | Updated: July 02, 2025, 04:43 pm IST | Category: Indian Economy | Views: 203 views

Advertisement

Green Steel has been in news recently. This article brings information on Green Steel and its production in India. The global push for sustainability has placed the spotlight on industries with high carbon footprints, and the steel industry is one of them. As the world transitions toward a net-zero future, Green Steel has emerged as a game-changing innovation. It refers to steel that is produced with minimal or zero carbon emissions, primarily by replacing coal-based production methods with cleaner alternatives such as green hydrogen and electric arc furnaces powered by renewable energy.

Why Green Steel Matters

Traditional steel manufacturing is responsible for nearly 7-9% of global CO2 emissions. As nations strive to meet their climate targets under the Paris Agreement, transforming the steel sector is essential. Green steel not only reduces emissions but also supports a circular economy, drives innovation, and enhances energy security.

Technologies Behind Green Steel Production

  • Hydrogen-Based Direct Reduced Iron (H-DRI): Replaces carbon-based reducing agents with green hydrogen to extract iron from ore.
  • Electric Arc Furnaces (EAF): Use electricity (preferably from renewables) to melt recycled steel scrap or DRI.
  • Carbon Capture and Storage (CCS): Captures CO2 emissions from conventional processes and stores them underground or reuses them.
  • Biomass Substitution: Using biochar or other renewable sources as partial replacements for coal in blast furnaces.

Global Pioneers in Green Steel

Countries like Sweden (HYBRIT Project), Germany (SALCOS), and Australia are leading the way in deploying large-scale green steel plants. These initiatives are backed by robust government support, R&D investments, and public-private partnerships.

Green Steel in India: Current Scenario

India is the second-largest steel producer globally, and its steel industry plays a vital role in economic development. However, it is also one of the highest emitters of industrial CO2. Recognizing this, India has started taking strategic steps toward greener steel production:

  • National Green Hydrogen Mission: Launched to produce 5 MMT of green hydrogen annually by 2030, crucial for hydrogen-based steelmaking.
  • Steel Scrap Recycling Policy: Promotes the use of scrap in Electric Arc Furnaces, reducing the need for raw iron ore.
  • Public and Private Initiatives: Companies like Tata Steel, JSW, and SAIL have started pilot projects exploring hydrogen DRI and carbon capture technologies.
  • Policy Support: Inclusion of green steel in India’s decarbonization roadmap under the Long-Term Low Emissions Development Strategy (LT-LEDS).

Also See: Green Steel in India

Challenges to Green Steel Production in India

Despite the growing momentum, several hurdles must be overcome:

  • High cost and limited availability of green hydrogen.
  • Dependence on coal for electricity and process energy.
  • Insufficient infrastructure for hydrogen storage and transport.
  • Need for substantial investment in R&D and retrofitting of existing plants.

Way Forward and Policy Recommendations

To accelerate the adoption of green steel, India must adopt a multi-pronged approach:

  • Enhance subsidies and incentives for clean steel technology deployment.
  • Invest in green hydrogen production and distribution infrastructure.
  • Foster international cooperation in research and technology transfer.
  • Mandate green procurement in public infrastructure projects.

Conclusion

Green Steel represents a transformative opportunity for India to lead the world in sustainable industrialization. With the right policies, innovation, and investment, the nation can become a global hub for low-carbon steel, aligning economic growth with environmental responsibility. The journey is complex, but the rewards—a cleaner planet, energy resilience, and a green economy—are well worth the effort.

Also See: World Economic Forum: What is green steel and why does the world need more of it?

Advertisement

Avatar for EditorWritten By: Editor

CSEguide.com platform provides information, current events, news, views, analysis, PYQs (Previous Year Questions), MCQs (Multiple Choice Questions), Mock Test Papers, Study Material, Books, Mentors, etc. to UPSC and State Civil Service Exam aspirants. The platform is equally useful for aspirants preparing for various competitive examinations.

See all articles by Editor

Related Stories

India UK Free Trade Agreement FTA

July 24, 2025  |  2523 views

India UK Free Trade Agreement FTA

India UK Free Trade Agreement FTA signed on July 24, 2025 in London, UK by PM Narendra Modi and UK  …

free trade agreement fta

July 24, 2025  |  503 views

Free Trade Agreement India

Free Trade Agreement India is associated with (as of July 2025): India has entered into several bilateral, regional, and comprehensive  …

free trade agreement fta

July 24, 2025  |  260 views

What is a Free Trade Agreement (FTA)

A Free Trade Agreement (FTA) is a treaty between two or more countries to reduce or eliminate barriers to trade  …

india rare earths development plan

June 28, 2025  |  432 views

India Launches Rare Earths Development Plan: A Strategic Move Toward Resource Security

India has taken a major strategic step by launching a comprehensive Rare Earths Development Plan, aimed at reducing the country’s  …

March 26, 2025  |  777 views

Blue Economy in 2025: Facing Climate Challenges with Boldness and Vision

India’s Blue Economy is a heartbeat for millions. Climate change is shaking things up, putting fishermen, fish stocks, and the  …

March 19, 2025  |  820 views

10 MCQs on FDI and Investments in India

Given below are 10 MCQs on FDI and Investments in India along with detailed answers and explanations. There is a  …

Green Steel in India

February 21, 2025  |  933 views

Green Steel in India

Green Steel in India has been in news in recent weeks. This article elaborates on Green Steel and Green Steel  …

corruption perceptions index 2024

February 12, 2025  |  3304 views

Corruption Perceptions Index 2024 by Transparency International

The Corruption Perceptions Index 2024 (CPI 2024) was released by Transparency International on February 11, 2025. The Transparency International observes  …

13th ministerial conference wto

March 9, 2024  |  1505 views

The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO)

The 13th Ministerial Conference (MC13) of the World Trade Organization unfolded in Abu Dhabi, UAE,  from February 26 to March  …

fiscal policy vs monetary policy

March 8, 2024  |  3464 views

Fiscal Policy vs Monetary Policy

Picture a country’s economy as a complex dance, guided by two main players: fiscal policy and monetary policy. Fiscal policy,  …