India's Ministry of Steel is exploring potential collaborations with Japan to address carbon emissions in the steel-making industry. According to an internal note obtained by BusinessLine, the ministry is considering the implementation of specific technologies with project funding from Japanese institutions.

Currently, two decarbonisation projects are in progress. The first project involves the utilisation of green hydrogen as an alternative fuel to partially replace coal. The second project focuses on developing new coke-making technologies that use less coking coal and demonstrate higher oven productivity.

India's steel-making sector has one of the highest carbon emissions globally due to its reliance on raw materials like iron ore and coal instead of alternatives such as scrap. The ministry is contemplating mechanisms to introduce these advanced technologies in India through funding from Japanese institutions, as indicated in the internal note.

Documents from the ministry reveal that the carbon dioxide emissions from the steel-making process in India range from 2.2 to 2.7 tonnes per tonne of crude steel produced (T/TCS), compared to the global average of 1.8 to 2 T/TCS. Although there has been a slight reduction in emissions in FY23 compared to the previous fiscal year, the ministry is actively seeking ways to further mitigate environmental impact.

Despite being the second-largest crude steel producer globally, with an installed capacity of 161 million tonnes (mt) and a production output of 122 mt, India recognises the need to adopt sustainable practices and collaborate internationally to address carbon emissions in its steel industry.