India sets sights on Green Steel with pilot projects and mission to define low-carbon standards

Sub: Env

Sec: Climate change

Green Steel Mission:

Objective: India’s Steel Ministry is working on its first-ever Green Steel Mission to promote the production of low-carbon steel.
- The focus is on defining and standardising “green steel” and expediting pilot projects using hydrogen in steel-making.
There is no universally accepted definition of “green steel.”
- It is broadly understood as steel produced using low-carbon energy sources like renewables or electric arc furnaces.
The Ministry aims to establish a clear definition by the end of the year.

Defining Green Steel:

The Ministry is considering defining green steel based on percentage terms of emission intensity, with a benchmark of 2.2 tonnes of CO₂ emissions per tonne of crude steel produced.
There may be a grading system based on the emission levels to classify steel as “green.”

Public Procurement Policy:

Green steel is expected to be costlier than conventional steel.
The Ministry is deliberating a public procurement policy that might incentivize the use of green steel despite the higher costs.

Hydrogen Pilot Projects:

National Green Hydrogen Mission: As part of this initiative, the Ministry approved three pilot projects with a financial outlay of ₹347 crore to use hydrogen in steel production.
Pilot Project Components:
- 100% Hydrogen for DRI (Direct Reduced Iron) via vertical shaft.
- Use of hydrogen in blast furnaces to reduce coal/coke consumption.
- Injection of hydrogen in vertical shaft-based DRI units.

Selected Pilot Projects:

Matrix Gas and Renewable Ltd Consortium:
- Capacity: 50 TPD (Tonnes Per Day)
- Members: Gensol Engineering Ltd, IIT-Bhubaneswar, Metsol AB (Sweden)
Steel Authority of India Ltd (SAIL), Ranchi:
- Capacity: 3200 TPD
Simplex Castings Ltd Consortium:
- Capacity: 40 TPD
- Members: BSBK Pvt Ltd, Ten Eight Investment, IIT Bhilai
- Estimated Cost: ₹230 crore (with 70% funding or ₹161 crore from government support)

Key Technologies to produce Green Steel:

Hydrogen-based Production:
- Using green hydrogen instead of coal as a reducing agent
- H2 reacts with iron ore to produce iron and water vapor
- Requires renewable energy to produce green hydrogen
Electric Arc Furnaces (EAF):
- Uses electricity instead of coal for heating
- Can be powered by renewable energy
- Often used with recycled steel/scrap metal

Major Global Initiatives:

National Green Hydrogen Mission:

The National Green Hydrogen Mission (NGHM) is India’s significant initiative toward a clean energy transition.
Launched: January 2023
Budget Allocation: ₹19,744 crore ($2.3 billion) until 2030
Primary Goal: Make India a global hub for green hydrogen production and export

Key Targets by 2030:

Strategic Components:

Source: TH_BL