India's shift to "Green Steel"

India's shift to "Green Steel" may depend on the development of a clean steel industry in the east of the country. 2019 saw the launch of the Pradhan Mantri Urja Ganga Project in Eastern India, which will supply gas to all nearby steel factories as part of a shift toward "Green Steel."

What is Green Steel?

Making steel without using fossil fuels is known as "green steel." In place of the conventional carbon-intensive manufacturing method involving coal-fired facilities, this can be accomplished by employing low-carbon energy sources like electricity, hydrogen, or coal gasification. In the end, it reduces greenhouse gas emissions, decreases expenses, and raises steel quality. The carbon footprint of the steel industry can be decreased through the use of low-carbon hydrogen (blue and green hydrogen). National Hydrogen Energy Mission (NHM) capitalizes on hydrogen for a cleaner alternative fuel option.

Significance & Challenge

The greatest industrial sector in terms of intense energy and resource usage is the steel industry. It is one of the main sources of carbon dioxide emissions (CO2). In order to meet its obligations under the climate change agreements established at the Conference of the Parties (COP26), the Indian steel industry must significantly cut its emissions by 2030 and achieve net-zero emissions by 2070. The iron and steel industry in the nation is currently struggling financially. However, the production of green steel is an expensive process with high costs.

What is the Status of Steel Production in India?

Production: With 120 Million Tonnes (MT) of crude steel produced during the fiscal year 2021–2022, India now ranks second in the world.

Reserves: The states of Odisha, Jharkhand, West Bengal, Chhattisgarh, and the northern parts of Andhra Pradesh contain more than 80% of the nation's reserves. Bhilai (Chhattisgarh), Durgapur (West Bengal), Burnpur (West Bengal), Jamshedpur (Jharkhand), Rourkela (Odisha), and Bokaro are significant steel-producing hubs (Jharkhand).

Consumption: According to the World Steel Association, China would be followed by India as the top user of finished steel in 2021 (106.23 MT).

Way Forward

To decarbonize the steel industry, cost-effective technology must be implemented. Numerous outdated facilities require renovation, and increased investment in energy-efficient manufacturing has promising future prospects. A appropriate infrastructure for recycling and the Steel Scrap Recycling Policy must be built in order to utilise scrap in reducing the energy required to make steel. The public sector and the government should commit to acquiring environmentally friendly green steel in order to increase demand for it. For the market expansion of green steel, the public and private sectors must develop green standards and similar sorts of designations. It is necessary to demolish polluting plant facilities that are old and past their prime.

Source: PIB