The International Energy Agency in its Stated Policies Scenario predicted that India steel production will double by 2030 and quadruple by 2050. Curbing CO2 emissions and meeting a growing steel demand seems to be a dilemma for policy and industry decision makers. The Institute for Energy Economics and Financial Analysis in a recent report said that recent announcements by global steel companies in India highlight how important India’s steel technology path will be to achieving global decarbonisation of the steel sector but the announcements have, to varying extents, promised the use of green steel technology without providing any detail. The lack of steel technology detail in these announcements is in contrast to those made in developed nations whenever companies want to highlight their shift towards low carbon steel. IEEFA I awaiting details of the technology intended to be used as global steel decarbonisation will be difficult if low-carbon steel capacity is built in developed nations whilst older, carbon-intensive technology is built in developing nations where much of the steel demand growth can be expected. Tata Steel, JSW, SAIL, JSPL & AM/NS India are among the largest producers in India. In addition, POSCO is planning steelmaking investment in India after four unsuccessful attempts in the last 17 years.Tata steel – 20 million tonne to 35-40 million tonneSAIL - 21 million tonne to 50 million tonneJSW - 18 million tonne to 45 million tonneJSPL – 70-8 million tonne to 15.9 million tonneAM/NS India - 10 million tonne to 30 million tonne In 2020, 56% of India’s steel output was produced via electric furnaces from which less than half was attributed to electric arc furnaces and the rest was produced on induction furnaces. These furnaces are mostly fed with direct reduced iron (DRI). India has a high share of steel production based on DRI utilizing gasified thermal coal which produces more emissions than DRI based on natural gas. The balance of 44% was produced via blast furnace route, using coking coal. Indian steel demand growth has led to significant investment in new blast furnace capacity in recent years. Hence, the Indian iron and steel sector is the most significant contributor to industrial energy demand, with a high reliance on coal (85% of energy inputs). Currently the steel industry represents almost 23% of total energy inputs and 30% of the industrial carbon dioxide missions in the industrial sector. The main reasons for the higher energy intensity of India’s steel sector compared to the global average include its high reliance on coal, lower share of scrap steel recycling, a fragmented and low performance casting sector, and the number of old blast furnaces.
The International Energy Agency in its Stated Policies Scenario predicted that India steel production will double by 2030 and quadruple by 2050. Curbing CO2 emissions and meeting a growing steel demand seems to be a dilemma for policy and industry decision makers. The Institute for Energy Economics and Financial Analysis in a recent report said that recent announcements by global steel companies in India highlight how important India’s steel technology path will be to achieving global decarbonisation of the steel sector but the announcements have, to varying extents, promised the use of green steel technology without providing any detail. The lack of steel technology detail in these announcements is in contrast to those made in developed nations whenever companies want to highlight their shift towards low carbon steel. IEEFA I awaiting details of the technology intended to be used as global steel decarbonisation will be difficult if low-carbon steel capacity is built in developed nations whilst older, carbon-intensive technology is built in developing nations where much of the steel demand growth can be expected. Tata Steel, JSW, SAIL, JSPL & AM/NS India are among the largest producers in India. In addition, POSCO is planning steelmaking investment in India after four unsuccessful attempts in the last 17 years.Tata steel – 20 million tonne to 35-40 million tonneSAIL - 21 million tonne to 50 million tonneJSW - 18 million tonne to 45 million tonneJSPL – 70-8 million tonne to 15.9 million tonneAM/NS India - 10 million tonne to 30 million tonne In 2020, 56% of India’s steel output was produced via electric furnaces from which less than half was attributed to electric arc furnaces and the rest was produced on induction furnaces. These furnaces are mostly fed with direct reduced iron (DRI). India has a high share of steel production based on DRI utilizing gasified thermal coal which produces more emissions than DRI based on natural gas. The balance of 44% was produced via blast furnace route, using coking coal. Indian steel demand growth has led to significant investment in new blast furnace capacity in recent years. Hence, the Indian iron and steel sector is the most significant contributor to industrial energy demand, with a high reliance on coal (85% of energy inputs). Currently the steel industry represents almost 23% of total energy inputs and 30% of the industrial carbon dioxide missions in the industrial sector. The main reasons for the higher energy intensity of India’s steel sector compared to the global average include its high reliance on coal, lower share of scrap steel recycling, a fragmented and low performance casting sector, and the number of old blast furnaces.
