1. Report on “Greening the Steel Sector in India: Roadmap and Action Plan"
Ministry of Steel released a comprehensive Report titled “Greening the Steel Sector in India: Roadmap and Action Plan” on 10th September, 2024, which is based on the recommendations of 14 Task Forces comprising of stakeholders from Ministries/Departments, industries, technology providers, experts, academia, think tanks and innovators etc.
This report provides a comprehensive overview of steel sector, discuss the various pathways for the decarbonization of the steel sector and chalks out the strategy, action plan and roadmap on various key levers for Green Transition such as Energy Efficiency, Renewable Energy, Green Hydrogen, Material Efficiency, Process Transition from coal based DRI to Natural Gas based DRI, Carbon Capture, Utilisation and Storage (CCUS) and the use of Biochar in steel industry.
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2. Taxonomy of Green Steel
“Green Steel” has been defined in terms of percentage greenness of the steel, which is produced from a steel plant with CO2 equivalent emission intensity less than 2.2 tonnes of CO2e per tonne of finished steel (tfs). The greenness of the steel shall be expressed as a percentage, based on how much the steel plant’s emission intensity is lower compared to the 2.2 t-CO2e/tfs threshold. Based on the greenness, the steel shall be rated as follows: Five-star green-rated steel: Steel with emission intensity lower than 1.6 t-CO2e/tfs shall be defined as five-star green-rated steel. Four-star green-rated steel: Steel with emission intensity between 1.6 and 2.0 t-CO2e/tfs shall be defined as four-star green-rated steel. Three-star green-rated steel: Steel with emission intensity between 2.0 and 2.2 t-CO2e/tfs shall be defined as three-star green-rated steel. Steel with an emission intensity higher than 2.2 t-CO2e/tfs shall not be eligible for green rating. The threshold limit for defining the star rating of Green Steel shall be reviewed every three years.
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3. Green Hydrogen in Iron and Steelmaking
Green hydrogen offers an avenue for fossil-free steelmaking. At present, the available technology for hydrogen-based production of green steel is not commercially viable in the country. Hence, the Government is supporting pilot projects for the use of Green Hydrogen in the steel sector.
Ministry of Steel has awarded five pilot projects under the National Green Hydrogen Mission for the use of hydrogen in steelmaking.
These projects focus on two key areas:
(i) partial substitution of natural gas with hydrogen in vertical shaft-based DRI production
(ii) injection of hydrogen into existing blast furnaces to reduce coal and coke consumption.
Various initiatives are also being undertaken by the Private Sector. Renewable energy sources like solar and wind are key to producing green hydrogen, making the shift to sustainable practices more feasible for the steel industry. The adoption of renewable energy in green hydrogen production is expected to accelerate the transition to a low-carbon economy.