GREEN STEEL AND ITS SIGNIFICANCE

Introduction

Steel is one of the most used materials in the world. With more than two million tonnes of this iron alloy manufactured every year, it is one of the key components involved in the manufacture of cars, buildings machine tools, utensils among others. Steel industry provides direct employment to over six million.

But it is also one of the most polluting and energy-hungry industries on the planet contributing for approximately 8 % of all the CO₂ emissions produced by humankind worldwide.

As the world moves toward sustainable practices, steel industry is also undergoing radical transformations. As a result, green steel is emerging as a revolutionary alternative, offering a low-carbon or carbon-neutral solution to steel production.

What is Green Steel?

Green steel refers to process of manufacturing steel using environmentally friendly practices that significantly reduce or minimises carbon emissions. Green steel is manufacturers use electric furnaces (EF) as against traditional coal-based blast furnaces, using renewable energy and carbon reduction technologies.

Importance of Green Steel

Reduces carbon footprint: Green Steel has a much smaller carbon footprint than traditional steel because it uses renewable energy and non-fossil fuels. Green steel production helps to reduce greenhouse gas emissions and climate change.

Integration of renewable energy: Using renewable energy sources like solar and wind power for steel production, green steel helps reduce the usage of fossil fuel

Improved air and water quality: Green steel plants with its lower emissions can lead to cleaner air and water around the manufacturing pants, benefiting local population.

Maximise resource efficiency: Better resource utilization is assured as green steel production involves recycling of more scrap metal

Market demand and economic benefits: Growing consumer demand for sustainable products can drive market growth for green steel, potentially creating new jobs in clean energy and technology sectors.

Compliance with environmental regulations

Industries are better equipped to meet stricter environmental regulations and sustainability goals set by governments by transitioning to Green steel

How green steel is produced:

Electric Furnaces (EFs) or Induction Furnaces

Primarily used in green steel production, EFs are more energy efficient and allow for higher scrap metal usage compared to traditional methods.

Challenges of Green steel

Higher initial cost:  Implementing Green steel technologies can involve significant upfront investment.

Scalability and availability of renewable energy:  Ensuring sufficient renewable energy supply to power large-scale green steel production can be challenging.

Market infrastructure development:  Establishing a robust market for green steel products and incentivizing its adoption may require policy support

Green steel represents a crucial step towards a more sustainable steel industry, offering significant environmental benefits while also presenting potential economic opportunities for the future.

Major challenges in Green Steel production

Technological limitations: New Green steel making technologies are still in development and may not be fully optimized for large-scale production, creating uncertainties in efficiency and cost.

Infrastructure development: Building a robust infrastructure for hydrogen production, storage, and transportation is crucial for widespread adoption of green steel but requires substantial investment.

Supply chain challenges: Securing sustainable raw materials like low-carbon iron ore and green hydrogen can be difficult due to limited availability and potential price fluctuations.

Economic viability:  The transition to green steel may involve significant upfront costs for new equipment and process changes, which could impact the competitiveness of steel producers.

Carbon accounting and standards: Defining clear metrics and standards for “Green steel” is important to avoid greenwashing and ensure accurate carbon footprint assessment.

Major Green Steel Initiatives

The Green steel initiative is a set of policies and technologies to reduce the carbon footprint of steel production in India. The initiative includes:

• Green steel taxonomy: A framework for defining and categorizing low-emission steel
• National Green Hydrogen Mission: A mission to produce and use green hydrogen
• Pilot projects:Projects to use hydrogen in steel production
• Energy efficiency technologies: Technologies to reduce energy use in steel production
• Renewable energy: Technologies to use renewable energy like solar, water & wind turbine in steel production
• Steel recycling: Technologies to recycle steel to reduce emissions
• Carbon capture technologies: Technologies to capture carbon emissions
• Green hydrogen-powered steel production facilities: Facilities that use 100% green hydrogen as an energy source.

The Green steel initiative aims to:

• Make India a leader in the global transition to low-carbon steel
• Create a market for green steel
• Attract investment in green technologies
• Develop a sustainable steel industry
• Reduce emissions from coal-based or blast furnace steel production

The future of Green steel is promising, with growing demand and opportunities across many industries. Green steel can help reduce emissions, improve energy efficiency, and create a more circular economy.

Conclusion

Green steel represents a paradigm shift in steel manufacturing. While challenges exist, the environmental and economic benefits make it an essential part of the global transition to a low-carbon future. Investing in Green steel will not only reduce emissions but also drive long-term sustainability and innovation in the industry.