Five years from now, 2030 is seen as an important year for Indian steel as the government aims to achieve an ambitious target of the ability to create 300 million tonnes (MNT) annual steel under its National Steel Policy 2017.
Although the demand for green steel in India is currently negligible, it is expected to increase significantly in the coming decades, ‘Unlocking Green Steel Demand: A Assessment of India’s Automotive, Infrastructure and Construction Sectors’ reports have been said.
Steel produced through low carbon emitting process is referred to as green steel.
The report has been prepared in collaboration with WWF-India & CII-Green Business Center (GBC).
“By FY 2029–30, the demand for green steel is estimated to reach 4.49 MNT, mainly operated at 2.52 MNT by the construction area, followed by infrastructure at 1.5 MNT, and automobiles on 0.48 MNT,” Ernst & YouY) -said the Prathenon Report. This will be fuel by a change towards urbanization and sustainable construction practices that grow early lift. The demand is determined by FY35 to reach 24.89 MNT, and FY40 is expected to exceed 73.44 MNT, due to large -scale infrastructure and green infection in motor vehicle manufacturing.
By FY50, the demand for green steel is estimated to be transported to the peak at 179.17 MNT, with construction accounting for more than half, and continues to contribute significantly to infrastructure and automobiles.
To meet this demand, the green hydrogen-based DRI (straight lower iron) technique will need to be widely adopted, as well as with permanent production methods such as electric arch furnaces and melted oxide electrolysis.
Green steel transition is powered by a remarkable price premium due to its high production cost and the effect of carbon pricing on traditional fossil-based steelmaking.
Currently, the premium USD 210 per ton on green steel produced through Hâ‚‚2 DRI (hydrogen-based direct low iron) technology, translates to 3.7 percent increase in construction project costs, 5.2 percent in infrastructure projects and 4.1 percent in motor vehicle construction.
However, such as the cost of green hydrogen declines and the scales of technology increase, the premium is estimated to significantly drop.
By 2030, the Green Steel Premium will fall to $ 7 per tonne, making the cost effects in sectors by 2035–2040. In contrast, continuous use of carbon-intensive BF-Bof Steel will increase increasing costs due to increasing carbon taxes, stating in the report.
