‘Govt working on green steel policy’
The Steel Ministry has begun work on formulating a comprehensive green steel policy that includes defining the manufacturing process, the skillset required and availability of funding support, sources told businessline.
A complete decarbonisation strategy (policy) is in the works, a senior official of the Ministry said.
In layman’s terms, green steel refers to steel made with lowcarbon emissions.
Previously, some 13odd task forces had been formed to determine the various modalities around green steelmaking, including a definition of the offering. Quite recently, a 14th task force was set up to explore the option of using biochar or biomass (as an alternative in blast furnace) in steelmaking, thereby bringing down carbon emissions during the manufacturing process.
“The Steel Ministry is working on a detailed decarbonisation strategy. The reports of the committees are at various stages of discussions. We are synthesising these documents into a coherent report,” the official said, adding that it will “soon” start consultation across Ministries, post which this report (green steel policy) will be put up in the public domain.
According to official data, the domestic steel sector accounts for 12 per cent of India’s greenhouse gas emissions with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel produced, compared with the global average of 1.9 tonnes of CO2.
PILOT PROJECTS
India is also exploring the process of having its own purehydrogen based DRI (direct reduction of iron) technology and the detailed project report so prepared “is under scrutiny”.
“A consortiumbased pilot for hydrogen based DRI facility is also being explored,” the official added.
According to those aware of discussions, a pilot plant (where pure hydrogen based DRI making) so proposed involves integrated (steel) players, secondary players and CSIR Lab (the Council for Scientific & Industrial Research) for development of technology, “and IP (intellectual property) in the area of hydrogenbased DRI making”.
Industrialscale hydrogeniron making, also known as direct reduction of iron (DRI), is where the oxygen is removed from the ironore. But instead of using high carbon emitting fossil fuels, it is done through the use of hydrogen with the waste gas being water.
So far, there are two prominent avenues of hydrogenusage in steel making.
The first involves injection of hydrogen in a nozzle through which air is forced into a smelter of the blast furnaces as partial substitution of pulverised coal injection.
The second involves mixing or blending or partial use of hydrogen with natural gas or fossil fuelbased reductants in the DRI furnace.
FUNDING SUPPORT
The Ministry of New and Renewable Energy (MNRE) has allocated ₹455 crore for piloting the use of hydrogen in steel making and has already formulated a scheme.
This will happen through injection of hydrogen in blast furnaces and DRI furnaces, as partial substitute of PCI and natural gas, respectively.
According to the official, some Indian steel players have already drawn up detailed plans to switch over to renewable energy fully or partially by 2023031.
And the industry is being encouraged to opt for green steelmaking processes, “particularly in the primary sector”.