Green Steel refers to the production process of steel without the utilization of fossil fuels. Instead, low-carbon energy sources such as hydrogen, coal gasification, or electricity are used as alternatives to conventional carbon-intensive methods typically employed by coal-fired plants. The adoption of Green Steel not only reduces greenhouse gas emissions but also decreases costs and enhances the quality of the steel produced. Low-carbon hydrogen, which includes both blue and green varieties, has been identified as a potential solution to diminish the carbon footprint of the steel industry.
The significance of this lies in the intensity of energy and resources used by the steel industry, making it one of the top CO2 emitters. Given India’s commitment at the Conference of the Parties (COP26) to drastically reduce emissions by 2030 and achieve net-zero carbon emissions by 2070, transitioning towards Green Steel is a necessary step.
Green Steel Production Methods
There are several ways to produce Green Steel, including:
1. Substitution of primary production processes with cleaner alternatives such as Carbon Capture Utilization and Storage (CCUS).
2. Replacement of traditional energy sources with low-carbon hydrogen.
3. Direct electrification through the electrolysis of iron ore.
Review of Steel Production in India
India holds the position of the world’s 2nd largest producer of crude steel, producing 120 Million Tonnes during the fiscal year 2021-2022. The country’s reserves, more than 80% of which are located in states such as Odisha, Jharkhand, West Bengal, Chhattisgarh, and the northern regions of Andhra Pradesh, play a vital role in this. Significant steel-producing centers include Bhilai, Durgapur, Burnpur, Jamshedpur, Rourkela, and Bokaro. In terms of consumption, India was the 2nd largest consumer of finished steel in 2021, surpassed only by China.
Government Initiatives to Support Green Steel
The Indian government has rolled out several initiatives to facilitate the transition towards Green Steel:
1. Steel Scrap Recycling Policy, 2019: This policy aims to increase the availability of domestically generated scrap, thereby reducing the consumption of coal in steel manufacturing.
2. National Green Hydrogen Mission: Launched by the Ministry of New and Renewable Energy (MNRE), this initiative focuses on promoting green hydrogen production and usage, with the steel sector being identified as a key stakeholder.
3. Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules, September 2021: These rules are expected to increase the availability of scrap in the steel sector.
4. National Solar Mission: Initiated by the MNRE in January 2010, it encourages solar energy utilization, which indirectly aids in reducing the emissions of the steel industry.
5. Perform, Achieve and Trade (PAT) Scheme: This incentive scheme motivates steel industries to decrease their energy consumption.
6. NEDO Model Projects: These projects, implemented by Japan’s New Energy and Industrial Technology Development Organization (NEDO) in steel plants, aim to improve energy efficiency.
Environmental Impact of Steel Production
Steel production, often reliant on coal and iron ore, produces pollutants such as Carbon Monoxide (CO), Carbon Dioxide (CO2), Oxides of Sulphur (SOx), and Oxides of Nitrogen (NOx). However, employing technological interventions like air filters and water-saving, power-saving measures, and using closed containers can significantly reduce these emissions.