India's Steel Sector Eyes Greener Future with Hydrogen and Decarbonisation
Key Ideas
  • India's steel production set to exceed 300 million tonnes by 2030 driven by government infrastructure projects and robust economic growth.
  • Ministry of Steel focusing on decarbonisation to reduce the sector's carbon footprint, targeting a 20% reduction in carbon intensity in the short term.
  • Roadmap includes increasing hydrogen use in the steel industry, carbon capture initiatives, and collaboration with various stakeholders for green technology development.
  • Government seeking public opinion on draft roadmap to address challenges like iron ore shortages, cheap steel imports, and accurate reporting of production data.
The steel sector in India is poised for substantial growth, with projections indicating a production milestone of over 300 million tonnes by 2030. This surge in steel output is attributed to the strong impetus provided by government-led infrastructure projects and the country's robust GDP growth. Against the backdrop of escalating concerns about the carbon footprint of the steel industry, the Ministry of Steel is actively engaged in decarbonisation efforts. A key aspect of this initiative is the focus on integrating hydrogen usage and carbon capture technologies into the sector. During a recent address in Kolkata, Steel Secretary Nagaendra Nath Sinha expressed confidence in the sustained demand for steel, underpinned by ongoing infrastructure development endeavors and a resilient economy. The ministry is set to unveil a roadmap aimed at eliciting public feedback to mitigate the carbon emissions associated with steel production, a major contributor to the country's total emissions. The steel industry's recent performance showcased a notable uptick, with finished steel output registering a significant year-on-year growth. To achieve the ambitious 300 million tonnes target, a compound annual growth rate (CAGR) of 12% is imperative. While the sector faces challenges such as iron ore shortages and policy lacunae, the government is actively working on solutions to address these issues. The envisioned decarbonisation roadmap emphasizes a collaborative approach involving multiple stakeholders, including research institutions, steel manufacturers, and technology providers, to harness indigenous green technologies. Furthermore, initiatives to enhance the use of hydrogen in steel production and implement carbon capture mechanisms are pivotal aspects of the government's strategy. An immediate target involves reducing carbon intensity by 20% alongside innovative measures to bolster sustainability. In addition to focusing on green technologies, the steel ministry is also advocating for accurate reporting of production and sales data by industry players. This push for transparency is complemented by measures to curb steel imports and tackle challenges posed by countries like Vietnam in the steel trade. The government's proactive stance on decarbonisation and sustainability underscores a positive trajectory for India's steel industry, signaling a shift towards a greener future.
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