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Steel Industry – Current challenges, National Steel Policy 2017, etc

Carbon Capture to Drive India’s Green Steel Transition

Why in the News

The Prime Minister shared an article highlighting the role of Carbon Capture, Utilisation and Storage in decarbonising India’s steel sector, aligning with India’s Net Zero 2070 commitment.

India’s Steel Sector at a Glance

  • India is the world’s second largest crude steel producer.
  • Production: Around 152 million tonnes in FY 2024-25.
  • Target under National Steel Policy 2017:
    • 300 million tonnes by 2030-31
    • 500 million tonnes by 2047

Note: Steel production contributes nearly 10 to 12 percent of India’s total greenhouse gas emissions due to coal based blast furnace and direct reduced iron routes.

What is CCUS

Carbon Capture, Utilisation and Storage involves:

  • Capturing carbon dioxide from industrial processes
  • Utilising it for industrial applications or
  • Storing it underground to prevent atmospheric release

It helps address process emissions that cannot be eliminated through energy efficiency or renewable power alone.

Government Measures

  • Green Steel Taxonomy:Defines emission intensity benchmark: Less than 2.2 tonnes of CO2 equivalent per tonne of finished steel
    • Introduces star rating framework
  • National Green Hydrogen Mission: ₹455 crore allocated for pilot projects in steel sector
  • Union Budget Allocation: ₹20,000 crore for piloting CCUS across five sectors including steel

Significance

  • Helps decarbonise existing steel plants without immediate asset replacement
  • Enhances global competitiveness amid carbon border measures
  • Supports Net Zero 2070 target
  • Encourages industrial ecosystems around carbon transport and storage
[2023] Consider the following heavy industries: 

1. Fertilizer plants 

2. Oil refineries 

3. Steel plants 

Green hydrogen is expected to play a significant role in decarbonizing how many of the above industries? 

(a) Only one (b) Only two (c) All three (d) None

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