Suggestions To Boost Green Steel
Steel

Suggestions To Boost Green Steel

The Indian Steel Association (ISA) and an analyst weigh in on measures to boost green steel. Greening steel is essential to meet India’s COP26 targets. Here are some suggestions from the ISA to make this happen: The ISA proposes preferential public procurement, meaning, manda...

The Indian Steel Association (ISA) and an analyst weigh in on measures to boost green steel. Greening steel is essential to meet India’s COP26 targets. Here are some suggestions from the ISA to make this happen: The ISA proposes preferential public procurement, meaning, mandating that government-funded construction projects source at least a portion of their steel from low-carbon emitting producers. This is along the same lines as renewable energy purchase obligations.Introducing standards for green steel, carbon credit mechanisms for the transfer of technology and financing for introducing breakthrough technologies are also in order. Introducing incentives for companies reducing their CO2 emission intensity below a set baseline, in terms of either subsidisation of a new technology or tax incentives, would help the steel sector to reduce its CO2 emission intensity to 2.4tCO2/TCS capital by 2030, in alignment with India’s Nationally Determined Contributions. For Carbon Capture and Storage, Carbon Capture Utilisation and those combined options, some policy in line with the solar power or the national bio-fuel policies may be introduced to promote the capturing and conversion of carbon into a sustainable fuel. Providing direct incentives would help make those technologies economically viable. Funding demonstration projects, pilot projects for the use of hydrogen in steel plants and the large scale capture, storage and utilisation of carbon would also help. Waiving off renewable power transmission charges would spur planning for new Plants ready for hydrogen or carbon capture and new electric furnaces powered by renewable electricity. Promoting R&D to reduce the price of hydrogen, from $5-10 per kg to $1-2 per kg, and developing the hydrogen ecosystem would boost the transition to green steel. The government could take up the matter of the Carbon Border Adjustment Mechanism at various international platforms until the sector and country is ready for that. What can steelmakers do? India’s current technology mix is skewed towards coal-based Direct Reduced Iron (DRI), induction furnaces and electric arc furnaces due to lower capex, resulting in inefficiency and fragmentation, opines Tanmoy Mandal, Associate Director, Metals & Minerals Practice, Frost & Sullivan. Mandal advises steelmakers to look at realigning their focus from capacity to engineer intelligent, productive and carbon-efficient capabilities for the future with the flexibility to combine direct reduction, blast furnace technology, increase the share of scrap-based arc furnaces, and basic oxygen furnace technology. “This would increase their ability to add incremental capacities at a low lifecycle cost,” he says. “The cost of decarbonisation is a challenge. Additionally, the flexibility to complement clean coal energy sources like commercial coal gasification using Swadeshi Coal can make steel with a lower carbon footprint, ensuring sustained profitability. This allows the operation of plants in uncertain and evolving environments, minimising risk.”

Related Stories

Gold Stories

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 86574 75330

Join us Telegram

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back