India Approves 13 green steel task forces

India approves 13 green steel task forces

In an effort to reduce carbon emissions from the steel industry, the Indian steel ministry has approved 13 task forces to develop the roadmap for green steel.

Jyotiraditya Scindia, India’s steel minister, launched 13 task forces for green steel during a meeting with integrated steel plants and secondary steel sector advisory groups last week. The task forces are organized into four “mission components.” The first component is key enablers, which will define green steel and provide benchmarks, certification, and carbon emissions monitoring from steel facilities.

The second component is to provide a policy framework for increasing demand for green steel in major end-use sectors. 

The third component seeks a supply-side push, which includes improving energy efficiency, transitioning to renewable energy, increasing the use of beneficiation, pellets, and scrap, determining green hydrogen requirements up to 2030, implementing carbon capture, utilization, and storage (CCUS), and exploring interim transition pathways to green steel in direct reduced iron (DRI) production.

The final component focuses on research and development, identifying novel finance mechanisms, identifying green steel manufacturing initiatives used around the world, and examining potential collaborations and skill development.

 “The move is expected to drive the development and adoption of sustainable steel-making practices and technologies in India. This will not only help to reduce the carbon footprint of the steel industry but also contribute to India’s efforts to combat climate change,” the ministry said last week. 

By 2070, India hopes to be carbon neutral. According to data from the country’s steel ministry, the average carbon emission intensity of the Indian steel industry decreased from around 3.1 t/tonne of crude steel (T/TCS) in 2005 to roughly 2.6 T/TCS by 2020. By 2030, the country intends to reduce total carbon emissions by 30-35 percent below 2005 levels.

The Indian Steel Association (ISA) requested policy enablers from the government in January 2022 to drive the production and acceptance of green steel in the country.

The Carbon Border Adjustment Mechanism (CBAM) proposed by the European Commission is set to go into force in October 2023. Importers will be required to report carbon emissions linked with covered products, including steel, under the method. 

Importers will be required to obtain CBAM certificates beginning in January 2026, when the mechanism is fully functioning. For Indian steel mills, Europe is a major steel export destination.

By the end of the decade, India hopes to have reached a steel production capacity of 300 million tonnes per year. However, there are significant problems in creating green steel, including a lack of affordable commercial green hydrogen production.

Scindia also urged that steel producers boost the capacity of their washeries to increase coal output, given the country’s increasing demand for coking coal, and explore new sources for raw material imports. Scindia also directed secondary steel representatives to investigate specialty steel exports to Western markets and to locate additional scrap sources in the country.

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