National Green Hydrogen Mission Supports Steel Sector’s Green Transition
In an era where sustainability is not just a choice but a necessity, the steel industry, known for its significant greenhouse gas emissions, is on the brink of a green revolution. The Indian Government has taken several pivotal steps to catalyse this transformation, aiming to reduce emissions and enhance the sustainability of steel production processes. These initiatives span technological advancements, policy-making, and the promotion of energy efficiency.
Decarbonisation and Green Technology Initiatives
A cornerstone of these efforts is the establishment of 14 Task Forces, involving a holistic engagement of stakeholders across industry, academia, think tanks, and various ministries. These task forces have provided comprehensive recommendations on decarbonisation levers including energy efficiency, renewable energy, green hydrogen, and material efficiency, among others. Specific attention is given to transitioning processes from coal-based Direct Reduced Iron (DRI) to Natural Gas based DRI, alongside technologies for Carbon Capture, Utilisation, and Storage (CCUS) and the deployment of biochar in the steel industry.
National Green Hydrogen Mission
The Ministry of New and Renewable Energy (MNRE) has launched the National Green Hydrogen Mission, signifying a landmark move towards green hydrogen production and usage. The steel sector, being a significant stakeholder in this mission, is poised to benefit from the utilisation of green hydrogen in iron and steel making, marking a significant leap towards emission reduction.
Renewable Energy Initiatives and Energy Efficiency
Moreover, the inception of the National Solar Mission by the MNRE in January 2010 augments the use of solar energy, significantly contributing to emission reductions in the steel industry by fostering the uptake of renewable energy. The Perform, Achieve, and Trade (PAT) scheme, falling under the National Mission for Enhanced Energy Efficiency, further incentivizes the steel industry to diminish their energy consumption, highlighting a pragmatic approach towards energy conservation.
Adoption of Best Available Technologies (BAT) globally, in modernization and expansion projects, exemplifies the sector’s commitment to enhancing operational efficiency and environmental compliance. International collaborations like the Japan’s New Energy and Industrial Technology Development Organization (NEDO) Model Projects for energy efficiency improvement have also been instrumental. Projects implemented include innovative systems for waste gas recovery, coke dry quenching, and waste heat recovery in various steel plants across India, showcasing an integrated approach to environmental sustainability.
Carbon Credit Trading Scheme
The recent notification of the Carbon Credit Trading Scheme (CCTS) by the Central Government, as of 28th June 2023, defines a groundbreaking framework for the Indian Carbon Market. It aims at reducing or avoiding greenhouse gas emissions across various sectors of the Indian economy by establishing a carbon credit certificate trading mechanism, thus incentivizing emissions reduction by steel companies.
Promotion of Recycled Steel
In addition to measures aimed at reducing emissions, the Government is fostering a circular economy within the steel sector through the promotion of recycled steel. The Steel Scrap Recycling Policy, 2019 is a testament to this, aiming at enhancing the availability of domestically generated scrap and promoting the establishment of metal scrapping centres in India. This initiative is complemented by the Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules, 2021, under the Vehicle Scrapping Policy, which aims at increasing the availability of scrap in the steel sector, further reinforcing the industry’s green transition.
The collective impact of these policies, initiatives, and technological advancements positions the Indian steel sector on a sustainable path forward. By embracing green technologies and practices, the sector is not just aligning with global sustainability goals but also setting a benchmark for industries worldwide in the transition towards a greener future.
