The Indian government’s announcement of a green steel taxonomy will encourage the adoption of decarbonisation initiatives by the domestic steel industry and help increase usage of scrap as raw material, industry experts said on Tuesday, December 31.
Last week, India’s ministry of steel declared a formula for defining ‘green steel’, classifying it under three categories based on the quantity of carbon emissions per metric ton of the metal produced.
Not only will this propel the decarbonisation initiatives of the industry, but it will also give a clear picture of the competitiveness of Indian steel, according to Steel Authority of India Limited (SAIL) chairman Amarendu Prakash. The star-rated green steel will help all stakeholders in identifying the sustainability features and provide opportunities for increasing steel exports, he said.
Under the Indian government’s green steel taxonomy, steel produced with carbon dioxide emissions of less than 2.2 tonne per metric ton of finished steel would be defined as green steel.
Steel produced with emissions below 1.6 tonnes per metric ton of finished steel would be classified as "five-star green-rated steel, the cleanest of the three.
Steel produced with emissions between 2.0 and 2.2 tonnes per metric ton of finished steel will be classified as "three-star green-rated steel" - the least clean of the lot. This threshold limit for defining the categories will be reviewed every three years.
“Some of the measures steel mills are adopting to reduce their carbon footprint include the transition to green power, reducing fuel cost by partly replacing coke with alternative fuels like hydrogen and coal bed methane, and increasing the use of scrap,” Ritrbrata Ghosh, vice president at rating agency ICRA, said.
The Indian Stainless Steel Development Association (ISSDA) said the establishment of clear emission intensity thresholds and a percentage-based greenness index marks a decisive step towards the decarbonisation of India's steel sector. “We urge our members to proactively embrace these guidelines and strive for higher green ratings, thereby reinforcing India's resolve to build a more sustainable, low-carbon future,” Rajamani Krishnamurti, president of ISSDA, said.
“As against average global GHG (green house gas) emissions of 1.91 t/tcs (tonnes carbon steel) for the steel industry, the same is 2.60 t/tcs for India due to the dominance of coal-based DRI (Direct Reduced Iron) process. Even the average of the BF-BOF route for the top five producers of India is 2.50 t/tcs,” Anil Chaudhary of industry representative body Punjab Haryana Delhi Chamber of Commerce and Industry (PHDCCI) said.