India can cut steel emissions before coal plants lock them in, Pg II

Key Highlights:

• India's steel sector contributes nearly 12% of the country's total greenhouse gas emissions, with emissions approximately 32% higher than the global average.
• The Indian government has launched a ₹5,000-crore scheme and the National Mission on Green Steel to accelerate decarbonization efforts.
• India was the world's second-largest steel producer in FY 2025-26, with an output of around 160 million tonnes.
• The National Mission on Green Steel aims to reduce the steel sector's emissions intensity to 2.2 tonnes of carbon dioxide-equivalent per tonne of crude steel by 2029-30.
• The European Union’s Carbon Border Adjustment Mechanism (CBAM) has come into effect, impacting India's steel exports to the EU.
• The Union Ministry of New and Renewable Energy is funding pilot green hydrogen projects to advance low-carbon steel production.

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Detailed Insights:

• The traditional Blast Furnace-Basic Oxygen Furnace (BF-BOF) method, which is highly carbon-intensive, accounts for 43% of India's crude steel production.
• Greener steel production pathways involve utilizing steel scrap, Electric Arc Furnaces (EAFs), and Direct Reduced Iron (DRI), potentially powered by green hydrogen.
• Globally, 70.4% of steelmaking still relies on BF-BOF, whereas EAF methods offer significantly lower emissions intensity.
• A substantial 43 million tonnes per annum of India's blast furnace capacity is scheduled for relining before 2030, risking long-term carbon lock-in.
• Redirecting investments from new BF-BOF plants to DRI-EAF could nearly halve global committed steel emissions without requiring additional capital.
• ArcelorMittal Nippon Steel India was the first integrated steel producer to receive green steel certification, with 89 units certified by March 2024.
• JSW Energy has commissioned India's largest commercial-scale green hydrogen plant in Karnataka to supply JSW Steel's DRI unit.

Key Concepts Involved:

• National Mission on Green Steel: A government initiative focused on reducing carbon emissions and promoting sustainable practices in the Indian steel industry.
• Blast Furnace-Basic Oxygen Furnace (BF-BOF): A conventional, coal-intensive steel production method that involves smelting iron ore in a blast furnace and refining it in a basic oxygen furnace.
• Electric Arc Furnace (EAF): A modern steelmaking technology that uses electricity to melt scrap steel or direct reduced iron, offering a less carbon-intensive alternative.
• Direct Reduced Iron (DRI): A form of iron produced from iron ore without melting, often used as a raw material in EAFs, and can be made using natural gas or green hydrogen.
• Green Hydrogen: Hydrogen produced through the electrolysis of water using renewable energy sources, offering a near-zero emission fuel for industrial processes like steelmaking.
• Carbon Border Adjustment Mechanism (CBAM): A European Union policy designed to put a fair price on the carbon emitted during the production of carbon-intensive goods imported into the EU.