Green Steel Policy

• 05 Apr 2024

Source: TH

Why in News?

The Steel Ministry is developing a comprehensive green steel policy, encompassing the manufacturing process, required skill set, and funding support, as part of a complete decarbonization strategy.

What is Green Steel?

• About:
  • Green steel is the eco-friendly production of steel with lower greenhouse gas emissions, possibly reducing costs and enhancing quality compared to traditional methods.
• Need:
  • High Coal Consumption in Blast Furnace: The steel manufacturing process, involving blast furnaces, basic oxygen furnaces, and electric arc furnaces, is a major global source of carbon emissions, primarily due to the high coal and coke consumption in blast furnace operations.
    • A study suggests that with steel demand projected to rise through the 21st century, there is a strong incentive to seek low greenhouse gas (GHG) emission alternatives for steel production.
    • India's domestic steel sector contributes 12% of the country's greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO₂ per tonne of crude steel, higher than the global average of 1.9 tonnes of CO₂.

• As a Low-Grade Carbon Production Method:
  • It Includes carbon capture and storage (CCS), using Green/Blue hydrogen, high biomass utilization, and artificial iron units (AIUs) for reducing carbon emissions and producing high-grade steel.

• Global Initiatives:
  • First Movers Coalition:
    • It is an initiative of the World Economic Forum to decarbonize industrial sectors like steel.
    • The Coalition announced it had expanded, with 55 companies and nine countries now committed to purchasing a proportion of the industrial materials and transport they need from suppliers using near-zero or zero-carbon solutions.
  • The Industrial Deep Decarbonization Initiative (IDDI):
    • It encourages governments to report environmental data and use low-emission and near-zero emissions cement/concrete and steel in construction projects, with nine countries, including the U.S., having joined and set to declare their pledges.
  • SteelZero and ConcreteZero:
    • The Climate Group’s SteelZero and ConcreteZero initiatives are corporate partnerships with 25 and 22 companies respectively committed to using net-zero steel and low- and net-zero emission concrete — and effectively cement, as its key ingredient.
  • European Union:
    • By 2030, the European Union is projected to host nearly 50 green and low-carbon steel projects, driven in part by policies like the European Union’s Carbon Border Adjustment Mechanism.
  • Sweden:
    • Hybrit supplied Volvo with the first coal-free "green steel," while H2 Green Steel is constructing a fossil fuel-free steel plant in Sweden with a sustainable hydrogen facility, both striving for environmentally friendly steel production.

• India’s Initiative:
  • The Steel Ministry is developing a green steel policy, including process definition, required skills, and funding, with a focus on complete decarbonization.
  • Already 13-odd task forces had been formed to determine the various modalities around green steel-making, including a definition of the offering.
  • Recently, the 14^th task force was set up to explore the option of using biochar or biomass (as an alternative in blast furnaces) in steel-making, thereby bringing down carbon emissions during the manufacturing process.
  • India is exploring its own pure-hydrogen-based DRI (direct reduction of iron) technology, with the project report currently under scrutiny, and also considering a consortium-based pilot for a hydrogen-based DRI facility.
    • The Ministry of New and Renewable Energy has allocated ₹455 crore for piloting the use of hydrogen in steel making.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? (2015)

(a) Coal production
(b) Electricity generation 
(c) Fertilizer production 
(d) Steel production

Ans: B

Q. Consider the following statements: (2009)

1. MMTC Limited is India’s largest international trading organization.
2. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of Orissa.

Which of the statements given above is/are correct?

(a) 1 only 
(b) 2 only 
(c) Both 1 and 2
(d) Neither 1 nor 2

Ans: C