Lok Sabha Question No. 1365 (UNSTARRED), answered on 2024-07-30
Subject: Policies to Promote Decarbonisation in Steel Industry
Ministry: STEEL
Asked by: Shri Raju Bista

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 1365

FOR ANSWER ON 30.07.2024

## POLICIES TO PROMOTE DECARBONISATION IN STEEL INDUSTRY

## 1365. SHRI RAJU BISTA:

Will the Minister of STEEL be pleased to state:

- (a) the current initiatives and policies in place to promote decarbonisation in the steel industry supported by relevant data on their impact;
- (b) the progress made towards reducing carbon emissions in the steel industry over the past five years including year-wise emission reduction statistics;
- (c)  the  specific  targets  and  timelines  set  by  the  Government  for  achieving  further decarbonisation in the steel sector; and
- (d) the role of green hydrogen and other innovative technologies in the decarbonisation strategy for the steel industry including any pilot projects or largescale implementations?

## ANSWER

## THE MINISTER OF STATE IN THE         (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)to(c): The  policies  and initiatives taken by Government  for  promoting decarbonisation in steel industry are as under:-

- (1) 14  Task  Forces  had  been  constituted  with  engagement  of  industry, academia, think tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate and recommend upon different levers of decarbonisation of steel sector. The findings have been compiled into a consolidated report "Greening the Steel sector in India - Roadmap and Action plan" which outlines the strategy, action plan and roadmap for the steel sector in India.
- (2) Steel Scrap Recycling Policy, 2019  enhances  the availability of domestically generated scrap to promote circular economy and green transition of the steel sector. It provides a framework to facilitate and promote establishment of metal scrapping centers in India for scientific processing and recycling of ferrous scrap  generated  from  various  sources  and  a  variety  of  products.  The  policy provides  standard  guidelines  for setting  up  dismantling  centre  and scrap processing centre, roles of aggregators and responsibilities of the Government, manufacture  and  owner.  The  policy,  inter-alia,  also  provides  framework  for scrapping of ELVs (End-of Life vehicle).

(3) Ministry  of  New  and  Renewable  Energy  (MNRE)  has  announced National Green Hydrogen Mission for green hydrogen production and usage. The steel is also a stakeholder in the Mission.

(4) Motor  Vehicles  (Registration  and  Functions  of  Vehicles  Scrapping Facility)  Rules,  2021  have  been  notified  under  the  framework  of  the  Motor Vehicles  Act,  1988  and  Central  Motor  Vehicle  Rules,  1989  under  Vehicle Scrapping  Policy.  It  envisages  to  increase  availability  of  scrap  in  the  steel sector.

(5) National  Solar  Mission  launched  by  Ministry  of  New  and  Renewable Energy in January 2010 promotes the use of solar energy and also helps to reduce the emission of steel industry.

(6) Perform, Achieve and Trade (PAT) scheme, under National Mission for Enhanced  Energy  Efficiency,  incentivizes  steel  industry  to  reduce  energy consumption.Till the  completion of Cycle-III of  the scheme  in  2020, the 167 Units from steel sector have saved 5.583 MTOE total energy and resulted in equivalent emission reduction of 20.52 Million Tonne CO2.

(7) Japan's New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement have been implemented in steel plants. Four Model Projects have been implemented to reduce the impact on environment:-

- i.  Blast Furnace Hot Stoves Waste Gas Recovery System at Tata Steel Limited.
- ii. Coke Dry Quenching (CDQ) at Tata Steel Limited.
- iii.  Sinter Cooler Waste Heat Recovery System at Rashtriya Ispat Nigam Limited.
- iv. Energy Monitoring and Management System in Steel Authority of India Ltd.

(8) The Carbon Credit Trading Scheme (CCTS) has been notified by the Central Government on 28 th  June 2023, which provides an overall framework for the functioning of the Indian Carbon Market and includes detailed roles and responsibilities of stakeholders towards operationalization of the scheme. The objective  of CCTS  is  to  reduce  or  avoid  greenhouse  gases  emissions  from various sectors of  Indian  economy  by  pricing  the  emissions  through  a carbon credit  certificate  trading  mechanism.  CCTS  is  intended  to  facilitate public and private sector companies to lower their cost emission reduction.

CO2 emission intensity of the Indian steel sector has been reduced from around 3.1 tonnes of CO2 per tonne of crude steel in 2005 to around 2.5 tonnes of CO2 per tonne of crude steel in 2022 by various initiatives.

To  decarbonise  steel  sector  in  the  country  in  short  term  (FY  2030), reduction of carbon emissions in steel industry through promotion of energy and resource efficiency and enhanced use of renewable energy are the focus. For the medium term (2030-2047), Green Hydrogen based steel making and Carbon Capture, Utilisation  and Storage  are  the  focus  areas.  For long term (2047-2070),  disruptive  alternative  technological  innovations  can  help  in achieving the transition to net-zero.

(d) Green Hydrogen, Carbon Capture Utilization and Storage (CCUS), and Biochar as  alternative  fuels  hold  significant  potential  for  decarbonizing  India's  steel  sector. Although  there  are  currently  no  large-scale  implementations,  the  following  pilot projects have been established:-

(a)  Tata Steel commissioned a 5 tonnes per day (TPD) carbon capture plant at its Jamshedpur Works.

(b)  Jindal Steel Works (JSW) has implemented carbon capture and storage facility with 100 tonnes per day (TPD) capacity at its Direct Reduced Iron (DRI) plant at Dolvi. The captured carbon is to be utilized in food and beverages industry.

(c)    Jindal  Steel  and  Power  Ltd.  (JSPL)  has  installed  3000  TPD  capacity Carbon Capturing Unit at Angul, Odisha.

(d)    Tata  Steel  has  successfully  injected  around  6Kg/(ton  of  hot  metal)  of Hydrogen resulting in 7-10% of CO2 emission reduction per tonne of crude steel(tcs).

(e)    Jindal  Stainless  Limited  has  commissioned  long-term  off-take  green hydrogen plant with the production capacity of 78 tonnes per year of green hydrogen, to be used for annealing process.

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