GREEN STEEL POLICY

GREEN STEEL POLICY

News: The Steel Ministry is in the process of developing a comprehensive green steel policy that will cover the manufacturing process, necessary skill sets, and funding support, as part of a holistic decarbonization strategy.

About:
• Green steel refers to the environmentally friendly production of steel with significantly reduced greenhouse gas emissions, potentially leading to cost savings and improved quality when compared to conventional methods.

Need:
• High Coal Consumption in Blast Furnace:
o The steel manufacturing process, which involves blast furnaces, basic oxygen furnaces, and electric arc furnaces, represents a significant global source of carbon emissions, mainly due to the substantial consumption of coal and coke in blast furnace operations.
• Steel Demand and Greenhouse Gas (GHG) Emissions:
o A study indicates that as steel demand is expected to increase throughout the 21st century, there is a strong motivation to explore low greenhouse gas emission alternatives for steel production.
• Indias Steel Sector Emissions:
o Indias domestic steel industry contributes 12% of the countrys greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel, exceeding the global average of 1.9 tonnes of CO2 per tonne.
• Low-Carbon Steel Production Methods:
o Low-grade carbon production methods include:
o Carbon capture and storage (CCS) technologies.
o Utilization of Green or Blue hydrogen.
o Increased utilization of biomass.
o Integration of artificial iron units (AIUs) to reduce carbon emissions and produce higher-grade steel.

Global Initiatives: 
• First Movers Coalition:
o The First Movers Coalition, initiated by the World Economic Forum, aims to drive the decarbonization of industrial sectors such as steel.
o The Coalition recently announced its expansion, with 55 companies and nine countries committed to sourcing a portion of their industrial materials and transportation needs from suppliers using near zero or zero-carbon solutions.
• Industrial Deep Decarbonization Initiative (IDDI):
o The IDDI advocates for governments to disclose environmental data and prioritize the use of low-emission or near-zero emissions cement and steel in construction projects.
o Nine countries, including the U.S., have joined this initiative and are poised to declare their commitments.
• SteelZero and ConcreteZero:
o The Climate Groups SteelZero and ConcreteZero initiatives are corporate partnerships involving 25 and 22 companies, respectively, committed to utilizing net-zero steel and low- or net-zero emission concrete (including cement). 
• European Union:
o By 2030, the European Union is expected to host nearly 50 green and low-carbon steel projects, driven partly by policies such as the European Unions Carbon Border Adjustment Mechanism.
• Sweden:
o Hybrit, a project in Sweden, supplied Volvo with the first coal-free green steel, showcasing a shift towards environmentally friendly steel production.
o Additionally, H2 Green Steel is constructing a fossil fuel-free steel plant in Sweden, equipped with a sustainable hydrogen facility, exemplifying the commitment to sustainable steel production practices.
Indian Initiative:
• The Steel Ministry is developing a green steel policy, encompassing process definition, required skills, and funding, with a strong emphasis on achieving complete decarbonization.
• Thirteen task forces have already been established to address various aspects of green steel-making, including defining the scope of the initiative.
• Most recently, the 14th task force was formed to investigate the feasibility of incorporating biochar or biomass as alternatives in blast furnaces to reduce carbon emissions during steel manufacturing.
• India is actively exploring its own technology for pure hydrogen-based Direct Reduction of Iron (DRI), with the project report currently under review. Additionally, there are considerations for establishing a consortium-led pilot project for a hydrogen-based DRI facility.
• The Ministry of New and Renewable Energy has allocated ₹455 crore to pilot the use of hydrogen in steelmaking, highlighting a significant investment in advancing sustainable steel production methods.