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.