Green Steel in India

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

What is Green Steel?

Green Steel is steel that is produced using environmentally friendly and sustainable methods that significantly reduce or eliminate carbon emissions. Traditional steel production relies heavily on coal-powered blast furnaces, which emit large amounts of carbon dioxide. Green steel production, on the other hand, uses renewable energy sources, recycling waste, and other environmentally friendly practices and focuses on low-carbon or carbon-neutral technologies.

What are Carbon-neutral Technologies?

The carbon-neutral technologies are such as:

1. Hydrogen-based steelmaking (H2-DRI):

• Uses green hydrogen (produced via electrolysis using renewable energy) instead of coal in the direct reduction of iron (DRI) process.
• Emits water vapor instead of CO₂, making it a near-zero-emissions process.

2. Electric Arc Furnaces (EAF) using Renewable Energy

• EAFs melt recycled scrap steel or direct reduced iron (DRI) using electricity from renewable sources (wind, solar, hydro) rather than fossil fuels.
• Much lower emissions than coal-based blast furnaces.
• Companies like Nucor and ArcelorMittal are investing in this technology.

3. Carbon Capture and Storage (CCS)

• Captures CO₂ emissions from conventional steel production and stores or repurposes them to reduce environmental impact.
• Less effective than hydrogen-based methods but a transitional solution.

How is Green Steel made?

Green Steel is made

• Using renewable energy sources like wind or solar power
• Using scrap metal instead of iron ore
• Using green hydrogen instead of carbon-based fuels
• Using electric arc furnaces instead of blast furnaces

Why is Green Steel Important?

• Green steel reduces the impact of steel production on the climate
• Green steel helps to make the steel industry more environmentally sustainable
• Steel accounts for ~7-9% of global CO₂ emissions.
• Sustainable construction and manufacturing demand it.
• Regulatory pressure (EU’s CBAM, carbon pricing, etc.) is increasing.
• Automotive & infrastructure industries are shifting towards low-carbon materials.

Examples of Green Steel Worldwide

• Hybrit (Sweden) – A joint initiative by SSAB, LKAB, and Vattenfall that uses hydrogen-based direct reduction (H2-DRI) instead of coal, aiming for fossil-free steel by 2030.
• H2 Green Steel (Sweden) – A startup building the world’s first large-scale, fully integrated hydrogen-based steel plant.
• Salzgitter AG (Germany) – Their SALCOS (Salzgitter Low CO₂ Steelmaking) project aims to replace coal with hydrogen.
• ArcelorMittal (Europe & North America) – Developing Hydrogen-based steel in Germany and investing in carbon capture and EAF-based steel in Canada.
• Thyssenkrupp (Germany) – Planning to replace blast furnaces with hydrogen-powered DRI and aiming for net-zero steel by 2045.
• POSCO (South Korea) – Developing HyREX technology to produce hydrogen-based steel.
• Nippon Steel (Japan) – Aiming for zero-carbon steel via hydrogen-based and electric arc furnace (EAF) technologies.
• Boston Metal (USA) – Using Molten Oxide Electrolysis (MOE), an innovative carbon-free steelmaking process.

Examples of Green Steel in India

Some of the companies engaged in Green Steel in India are given below.

Tata Steel

• Tata Steel Jamshedpur has successfully trialed hydrogen-based steel production.
• Tata Steel Netherlands is working on phasing out coal-based steel production.

JSW Steel

• Launched India’s first green steel brand, “JSW Neosteel”.
• Investing in electric arc furnaces (EAFs) and hydrogen-based steelmaking.

SAIL (Steel Authority of India Ltd.)

• Partnering with international firms to explore green hydrogen-based steelmaking.
  AM/NS India (ArcelorMittal Nippon Steel India)
• Investing in renewable energy-powered EAFs to reduce carbon footprint.

Jindal Steel & Power (JSPL)

• Exploring coal gasification and hydrogen-based steel production to reduce emissions.

Vedanta & Essar Steel

• Moving towards low-carbon steel production through renewable energy integration.
• India is making significant progress in green steel production, supported by government initiatives like the National Green Hydrogen Mission and carbon reduction policies.

Green Steel in India and Initiatives

India is actively advancing its green steel initiatives to reduce carbon emissions in the steel industry. Here are some key statistical insights on Green Steel in India.

1. Green Steel in India Production and Consumption Projections:

• Current Production: As of now, green steel production in India is in its nascent stages, with limited large-scale commercial output.
• Projected Consumption: Green steel consumption is expected to rise from 2.2 million tonnes in the fiscal year 2026-2027 to 10.6 million tonnes by 2031. This would increase the share of green steel in total procurement from 5% in FY27 to 15% by FY31.

Government Initiatives and Investments for Green Steel in India

• Green Steel Mission: The Ministry of Steel is formulating a ‘Green Steel Mission’ with an estimated investment of ₹15,000 crore (approximately $1.74 billion). This mission aims to assist the steel industry in reducing carbon emissions and progressing towards the net-zero target.
• Incentives for Low-Carbon Steel Production: The steel ministry has requested ₹150 billion from the national budget to incentivize mills to produce low-carbon steel. These incentives are designed to reduce emissions, boost research and development, and encourage the use of renewable energy in steel production.

Also See: Ministry of Steel roadmap on Green Steel in India: Greening the Steel Sector in India: Roadmap and Action Plan

Definition and Classification of Green Steel in India

• India has established guidelines classifying ‘green steel’ as having carbon dioxide emissions of less than 2.2 metric tonnes of CO₂ equivalent per tonne of finished steel.
• Currently, India’s steel production emits approximately 2.55 metric tonnes of CO₂ per tonne of crude steel, which is higher than the global average.

Green Steel Taxonomy

• Released in December 2024, this taxonomy defines green steel and its star rating
• It categorizes steel by its carbon emissions per ton
• The taxonomy encourages cleaner production practices
• It includes three star ratings: three-star, four-star, and five-star
• The star ratings are based on the steel’s emission intensity
• The benchmarks for the star ratings will be reviewed every three years

India Green Steel Network (IGSN)

• Launched in June 2022, this network aims to transition to low-carbon steel
• It includes representatives from business, think tanks, civil society, and more
• The IGSN helps build partnerships and collaboration between stakeholders

Green Steel Mission

• Includes a PLI scheme for green steel, incentives for renewable energy, and mandates for government agencies to buy green steel
• It also integrates the steel sector into the National Green Hydrogen Mission

Also check the Press Release by Ministry of Steel on 30 December 2024 on Green Steel Mission and Green Steel in India.

Articles on Indian Economy.

Also read: Green Steel and Its Production in India – A Sustainable Revolution