� OPINION �
prioritized . In fact , a smallcapacity CO 2 capture plant is already operational in the country .
One private sector steel producer has taken an innovative step by planting a million mangrove saplings , which are expected to capture approximately 185,000 tonnes of carbon over three decades . Additionally , the use of biochar as a replacement for coal in steel production is being explored .
On a larger scale , a major government-owned steel company is participating in the World Steel Association ' s
CO 2 data collection program to achieve the Climate Action Member certification . Several players have already adopted ResponsibleSteel™ certification and the WSA methodology to account for embedded emissions and meet reduction targets .
The business case for green steel
Producing low-emission steel is undoubtedly more expensive than traditional , fossil fuelbased methods . The costs for setting up green steel plants , particularly first-of-a-kind facilities , can be prohibitive , as steel plants typically require massive investments and decades to break even . The window for switching to loweremission technologies is narrow , but failing to invest in new technologies could lead to even higher costs in the future — or , worse , plant closures .
To make these investments worthwhile , it is essential to engage all stakeholders in the transition . For example , Sweden ’ s Hybrit SSAB partnered with Volvo ( the end user ) to achieve a successful outcome . Volvo became the first company in the world to use fossil-free steel . In India , similar off-take agreements with automakers , white goods manufacturers , and construction companies could accelerate the shift to lowemission steel production .
Very soon , regulatory and voluntary emission targets will need to be met to remain competitive . Early adopters of green steel will be wellpositioned to sustain their business in this evolving market .
Financial and policy support for green steel
Given the substantial investment required , innovative financial instruments will be key . At COP26 , new financial pledges were made to support countries in meeting their emission reduction goals . In India , corporations also need supportive government policies to move forward on the path to low-emission steel production .
About the author
A . Mohan is a seasoned metallurgical engineer with over 35 years of experience in the steel industry , including key roles at SAIL , India , and L & T ' s EPC Metals group . In addition to his engineering background , he holds qualifications in Industrial Engineering and has completed a certificate course on " Energy , the Environment , and our Future " from Penn State , USA . Mohan is also an avid writer , contributing to publications such as The Hindu and Times of India , as well as various other platforms .
As mentioned earlier , achieving green steel production and low-emission targets must be incentivized . Commercial-scale investments should be backed with adequate concessions , such as tax breaks or subsidies . Recently , the Indian government approved the Green Hydrogen Mission to promote the use of green hydrogen as a cleaner energy source . Further announcements , including support for carbon capture infrastructure , are expected . These steps will help transition green steel from a niche premium product to a mainstream offering .
References
• rsdebate . nic . in 33 / 36
• Insights from the Steel Sector Decarbonization Roadmap Workshop , April 2022 , Delhi , India
• Indian steel manufacturers ' websites
44 Green Steel World | Issue 15 | November 2024