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

  • November 18, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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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:

  1. Matrix Gas and Renewable Ltd Consortium:
    • Capacity: 50 TPD (Tonnes Per Day)
    • Members: Gensol Engineering Ltd, IIT-Bhubaneswar, Metsol AB (Sweden)
  2. Steel Authority of India Ltd (SAIL), Ranchi:
    • Capacity: 3200 TPD
  3. 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:

  1. HYBRIT (Sweden):
  • Partnership between SSAB, LKAB, and Vattenfall
  • First fossil-free steel delivery in 2021
  • Plans for commercial-scale production by 2026
  1. H2 Green Steel (Sweden):
  • Large-scale green steel plant under development
  • Plans to produce 5 million tonnes annually by 2030
  1. ArcelorMittal:
  • Multiple decarbonization projects across Europe
  • Investing in various technologies including hydrogen-based production

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:

  1. Production Capacity:
  • 5 million tonnes of green hydrogen annually
  • Development of at least 125 GW of renewable energy capacity
  • Creation of over 6 lakh jobs
  1. Manufacturing Capabilities:
  • Establish domestic manufacturing for electrolyzers
  • Target: 60-100 GW of electrolyzer capacity

Strategic Components:

  1. Green Hydrogen Production:
  • Focus on renewable energy-powered electrolysis
  • Development of production hubs and infrastructure
  • Integration with existing industrial clusters
  1. Strategic Interventions:
  • SIGHT Program (Strategic Interventions for Green Hydrogen Transition)
  • R&D initiatives
  • Public-private partnerships
  • Pilot projects and demonstrations
  1. Financial Support:
  • Production-linked incentive schemes
  • Viability gap funding
  • Infrastructure development support
  • Research funding

Source: TH_BL

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

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