Indian Steel Industry Seeks Government Aid For Green Steel Production To Meet Net-Zero Emissions Target By 2070

Major steel manufacturers in India are requesting assistance from the government in their pursuit to manufacture green steel, as they anticipate that the additional expenses incurred in production with this transition will not be absorbed by consumers.

Steel production is an energy-intensive process that accounts for among the highest contributors to carbon emissions worldwide.

Green steel is produced without the use of fossil fuels, with the aim of reducing carbon emissions. While most steelmakers have committed to being net zero on emissions over a period of time, the process will entail significant costs.

Tata Steel's CEO TV Narendran said that transitioning to green energy, such as gas or hydrogen, would require significant capital expenditure and be more costly for at least the next decade, as per Economic Times report.

Tata Steel, a major steel producer in India, recently conducted a hydrogen gas injection trial at its Jamshedpur plant which has an annual steel production capacity of 12 million tonnes.

To replace coal with clean fuel, the cost of hydrogen must be less than $2 per kilo and it must be environmentally friendly, according to Narendran.

However, the hydrogen used for trials cost around $12 per kilo, making it unfeasible on a larger scale.

Furthermore, JSW Group's chairman Sajjan Jindal, while acknowledging the need for sustainable energy, stated that customers won't bear additional costs of producing environmentally-friendly steel.

India has promised to be net zero on emissions by 2070. Following the target, JSW Steel aims for net-zero emissions by 2050, while Tata Steel's target is 2045.

According to a statement made last month, Jyotiraditya Scindia; Union Steel Minister, also suggested that local steelmakers might have to allocate some of their production to green steel.

Earlier this year, the ministry of steel said that in the short-term, up to 2029-30, the focus would be on reducing carbon emissions in the steel industry through the promotion of energy and resource efficiency and renewable energy.

From 2030-2047, the industry is to focus on green hydrogen while disruptive alternative technological innovations are to be prioritised between 2047-2070.

This long-term plan aims to facilitate a transition towards more sustainable steel production.