Context

The Steel Ministry has initiated efforts to develop a thorough green steel policy to reduce carbon emissions. 

• This policy will include defining the production processes, necessary skills, funding availability, and other pertinent aspects.

What is Green Steel?

• Green steel is steel manufactured through eco-friendly and sustainable practices.
• It’s done by using energy from renewable sources, creating less carbon dioxide, and managing waste better.
• Its manufacturing uses no fossil fuel. 
• Objective: To make steel production more eco-friendly and lessen its impact on the climate.

Techniques to Reduce Carbon Footprints

• Carbon-based materials: Carbon footprints can be decreased by using less carbon-based materials and recycling more steel.
• Green Hydrogen: Green hydrogen is a solution that emits only water when it’s burned.
• • It’s produced by using water and renewable electricity.
    • This process is called electrolysis.
• Green hydrogen offers a clean and sustainable alternative for various industries, including steel manufacturing.
• Blue Hydrogen: Blue hydrogen is another option that’s low in carbon emissions.
  • It’s produced using fossil fuels, but with a technology called carbon capture.
• This technology helps capture and store the carbon emissions, making blue hydrogen cleaner than traditional fossil fuels.
• Blue hydrogen serves as a transitional solution towards cleaner energy sources.
• Electric arc furnaces: Electric arc furnaces are also used, but they’re not always powered by renewable energy, so the steel they make might not be completely green.

Benefits and Drawbacks of Green Steel

Steps Taken for Green Steel Making in India

• 13 task forces: Thirteen task forces were previously established to address various modalities of green steel-making.
• 14 task forces: Recently, a fourteenth task force was formed to investigate the use of biochar or biomass as alternatives in blast furnace operations to reduce carbon emissions.
• Pilot Projects and Hydrogen-based Technology
• • Pure-hydrogen- DRI: India is exploring its own pure-hydrogen-based Direct Reduction of Iron (DRI) technology.
    • A consortium-led pilot project for a hydrogen-based DRI facility is also being explored.
  • Collaboration: The proposed pilot plant involves collaboration between integrated steel players, secondary players, and the Council for Scientific & Industrial Research (CSIR) Lab.
  • Use of hydrogen: Industrial-scale hydrogen-iron making, known as Direct Reduction of Iron (DRI), uses hydrogen instead of high carbon-emitting fossil fuels, with water as the waste product.

Overview of Indian Steel Sector

• This industry is a deregulated sector. 
• Categorisation: The Indian steel industry is categorized into major, main, and secondary producers.
• Production Statistics
  • India ranks as the world’s second-largest crude steel producer, with 125.32 MT output in FY23.
  • Finished steel production stood at 121.29 MT during the same period.
• Key Drivers of growth
  • Raw Materials (Availability of iron ore): India has rich reserves of iron ore, a key ingredient in steel production. T
  • Cost-effective labor: India has a large workforce, and the steel industry can benefit from a readily available pool of skilled and unskilled labor. 
    • The steel industry significantly contributes to India’s overall manufacturing output.

Status of Greenhouse Gas Emissions in the Steel Sector

• India’s domestic sector contribution: Official data shows that India’s domestic steel sector contributes 12% to the country’s greenhouse gas emissions.
• Intensity of Emission: The emission intensity is around 2.55 tonnes of CO2 per tonne of crude steel, higher than the global average of 1.9 tonnes.