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Global Shift towards Green Steel

For years, the steel industry has been a major contributor to greenhouse gas emissions due to the use of coal and other fossil fuels in traditional steel production, leading to climate change and air pollution. However, in recent times, the industry has started to move towards a more sustainable approach with the advent of green steel.

Green steel is steel produced with renewable energy sources or reduced carbon emissions. Unlike traditional steel that uses coal and emits high amounts of carbon, green steel uses alternative energy such as wind, solar, hydro, or hydrogen. This lowers carbon emissions and helps fight climate change, making it a promising solution for reducing carbon footprint and achieving net-zero emissions targets

This notorious steel industry has a staggering amount of carbon footprint. For every tonne of traditional steel produced, an average of 1.8 tonnes of carbon dioxide emissions are generated. The good news is that green steel can significantly reduce emissions by up to 95%. How? By using renewable energy sources such as wind, solar, hydro or hydrogen. Not only does green steel production reduce carbon emissions, but it also slashes energy consumption by up to 80% compared to traditional steel production.

But that's not all. The recycling of scrap steel in green steel production can lower energy consumption by up to 75% and reduce water usage by up to 40%. And the numbers couldn't be more significant as the global demand for steel is projected to reach 2.5 billion tonnes by 2050. If the industry fails to adopt sustainable production methods like green steel, the steel sector could contribute up to 15% of global greenhouse gas emissions by 2050.


Impact on Environment due to traditional steel

  • Traditional steel production, which involves using coal to reduce iron ore to pig iron, is a significant contributor to global greenhouse gas emissions, accounting for 6% to 7% of the total.
  • The steelmaking process requires high temperatures and energy consumption, usually from fossil fuels, to shape steel into useful geometries.
  • Coal has been the primary reagent used in steelmaking to bind with oxygen and access pure iron, resulting in the production of CO2 as a by-product.
  • The steel industry is projected to consume 50% of the remaining 1.5°C carbon budget by 2050.
  • Apart from CO2 emissions, traditional steel production also contributes to other types of pollution, such as air and water pollution.

How Green steel is changing the industry?

  • Reducing Carbon Emissions: Green steel production emits fewer greenhouse gases than traditional steel production. This means that the industry can reduce its carbon footprint and contribute to global efforts to mitigate climate change.
  • Encouraging Investment: The shift towards green steel is encouraging investment in renewable energy and clean technologies, which are critical to achieving net-zero emissions targets.
  • Driving Innovation: The development of green steel requires innovation in areas such as renewable energy, hydrogen production, and carbon capture and storage. This is driving the development of new technologies and creating opportunities for businesses to develop new products and services.
  • Improving Brand Reputation: Companies that produce green steel can improve their brand reputation by demonstrating a commitment to sustainability and reducing their environmental impact.
  • Stimulating Economic Growth: Green steel production can stimulate economic growth by creating new jobs and opportunities in industries such as renewable energy and clean technologies.


India’s Contribution towards Decarbonising Steel Industry

  • According to a recent report by The Energy and Resources Institute (TERI), India could reduce its carbon footprint by up to 45% by adopting green steel production technologies by 2050.
  • The Ministry of New and Renewable Energy's National Green Hydrogen Mission seeks to promote green hydrogen production and usage, with the steel sector included as a stakeholder.
  • India's Ministry of Steel has also set a target to produce 300 million tonnes of steel annually by 2030, and plans to achieve this target by increasing the use of scrap and adopting green technologies.
  • Tata Steel, one of India's largest steel producers, has announced a target to become a carbon-neutral company by 2050 and is investing in green steel production technologies such as hydrogen-based direct reduction.
  • JSW Steel, another major steel producer in India, is also investing in green steel technologies, with plans to use hydrogen in its steelmaking process and to produce 20 million tonnes of green steel annually by 2030.
  • The Indian government has launched a program called 'Green Steel for a Green India' to promote the use of green steel in various sectors, including infrastructure, construction, and automotive.


 In Conclusion, we can say that Green Steel is changing the global perspective on the steel industry by offering a more sustainable alternative to traditional steel production, which has been a significant contributor to greenhouse gas emissions. As more and more countries and companies are committing into reducing their carbon footprint and achieving net-zero emissions, the demand for green steel is expected to increase. This has led to significant investments in research and development of low-carbon steel production technologies, as well as the implementation of policies and initiatives to promote the adoption of green steel. Ultimately, the shift towards green steel production is expected to contribute to a more sustainable future for the global steel industry and help mitigate the impact of climate change.

"Say goodbye to traditional steel production and hello to a greener, more sustainable future with Green Steel”

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Aniket Ashok Gawande