The Ministry of Steel is preparing to introduce a Green Steel Mission, similar to the Green Hydrogen Mission, aimed at promoting environmentally sustainable manufacturing practices.

Steel Secretary Sandeep Poundrik announced that the government is considering a procurement policy to boost demand for ‘green steel' and encourage the industry to adopt decarbonisation strategies.  This initiative comes as global pressure mounts on countries to reduce their carbon footprint in manufacturing.

For example, the European Union is set to implement a 25% 'carbon tax' on steel, aluminium, and other imported goods.   Speaking at the launch of the report ‘Greening the Steel Sector in India: Roadmap and Action Plan’ Poundrik indicated that the Ministry may also introduce incentives, particularly for smaller steel producers, to enhance sustainable practices. He emphasised that the first step will be to define ‘green steel’ based on the 14 reports prepared by task forces.  

The Green Steel Mission will include components such as policies, incentives, and an implementation roadmap, similar to the Green Hydrogen Mission.   H.D. Kumaraswamy, Minister of Steel and Heavy Industries, highlighted that as one of the world's largest steel producers, India must align its industrial growth with global environmental objectives. "Sustainability is no longer a choice; it is a necessary obligation," he said.  

The task force reports recommended both demand and supply-side measures to drive the greening of India's steel sector. The Ministry is keen to create demand for green steel through a ‘Green Public Procurement (GPP)’ policy. It also proposed the establishment of an agency similar to Energy Efficiency Services Ltd (EESL) to facilitate bulk procurement of green steel.  

Additionally, the report suggested prioritising the development of an ecosystem for green steel production and consumption by establishing a robust system for measuring emissions, creating a registry of green steel production, and tracking certifications.   The report further called for government support in piloting green hydrogen projects across three main areas: hydrogen use in blast furnaces, hydrogen blending in shaft furnaces, and a 100% hydrogen-based Direct Reduced Iron (DRI) plant.  

The Ministry of Steel may coordinate with other ministries to extend green hydrogen project benefits, already available to the refinery and fertiliser sectors, to the steel industry. The report also recommended developing experimental blast and shaft furnaces in India for hydrogen injection trials and accelerating international collaborations to adopt green hydrogen in steel production.

 The report, which started in March 2023, is the result of 130 consultation sessions involving over 200 stakeholders. It also addresses four key enablers of this transition: finance, international cooperation, skill development, and R&D.

(mint)