Greening

the Steel
Sector in India
Roadmap and Action Plan
GREENING THE STEEL SECTOR IN INDIA

2|
 Greening
the Steel Sector in India
Roadmap and Action Plan
September 2024

©Ministry of Steel, Government of India

Greening the Steel Sector in India Roadmap and Action Plan

Authors:
Ms. Neha Verma, Director, Ministry of Steel, (GOI), Deepak Yadav (CEEW), Karthik Shetty (CEEW), Rudhi Pradhan
(CEEW), Karan Kothadiya (CEEW), Rishabh Patidar (CEEW), Hemant Mallya (CEEW), Sobhanbabu PRK (TERI),
Dr. Souvik Bhattacharjya (TERI), Dr Manish Kumar Shrivastava (TERI), Arupendra Nath Mullick (TERI),
Mayank Aggarwal (TERI), Mandavi Singh (TERI)

Citation:
Ministry of Steel, Government of India. (2024) Greening the steel sector in India: Roadmap and action plan.
Neha Verma, Deepak Yadav, Karthik Shetty, Rudhi Pradhan, Karan Kothadiya, Rishabh Patidar, Hemant Mallya,
Sobhanbabu PRK, Souvik Bhattacharjya, Manish Kumar Shrivastava, Arupendra Nath Mullick, Mayank Aggarwal,
Mandavi Singh (Authors).
GREENING THE STEEL SECTOR IN INDIA

|I
GREENING THE STEEL SECTOR IN INDIA

II |
GREENING THE STEEL SECTOR IN INDIA

| III
GREENING THE STEEL SECTOR IN INDIA

IV |
GREENING THE STEEL SECTOR IN INDIA

ACKNOWLEDGMENT
The Ministry of Steel (MoS) extends its deepest appreciation to Shri H. D. Kumaraswamy, Minister of Steel;
Shri Bhupathiraju Srinivasa Varma, Minister of State for Steel; Shri Sandeep Poundrik, Secretary, MoS; Shri
Vinod K. Tripathi, Joint Secretary and Shri Ashwini Kumar, Economic Advisor, MoS, for their exceptional
leadership in the development of this report. The Ministry also acknowledges the invaluable contributions

Adviser; Shri Devidatta Satapathy, Director; and Shri Subhash Kumar, Deputy Secretary, whose dedicated
efforts were instrumental in bringing this report to fruition. Further appreciation is extended to the Young
Professionals, Shri Harsh Jape and Shri Chandrabhal Chakraborty, and Consultant, Ms. Rashi, for their

including Shri Jyotiraditya Scindia, former Minister of Steel; Shri Faggan Singh Kulaste, former Minister of
State for Steel; Shri Nagendra Nath Sinha, former Secretary, MoS; and Ms. Ruchika Chaudhry Govil, former
Additional Secretary, for their visionary leadership, which laid the foundation for this report.

The Ministry is particularly grateful to the Chairpersons of all the 14 task forces for their invaluable insights,
unparalleled expertise and contributions that have profoundly shaped this report. These include Shri
Saraswati Prasad (Former Special Secretary, MoS); Shri R. P. Gupta (Former Secretary, MoEFCC); Smt. Aruna
Sharma (Former Secretary, MoS); Shri Ashok K. Tripathi (Independent Director, SAIL); Shri Aniruddha Kumar
(Former Additional Secretary, MNRE); Dr. Anup K. Pujari (Former Secretary, Ministry of Mines); Shri Indu
Shekhar Chaturvedi (Former Secretary, MNRE); Dr. V. K. Saraswat (Member, NITI Aayog); Dr. Indranil Chattoraj

to the PM); Shri Sunil Mehta (Chief Executive, IBA); Shri Ajay Bisaria (Former Indian High Commissioner to
Pakistan); Smt. Sunita Sanghi (Former Principal Advisor, MSDE); and Shri Sanak Mishra (Former President of
the Indian National Academy of Engineering). Further, sincere thanks are due to all the members of these
task forces for their time, effort and expertise. Further, sincere thanks are due to all the members of these
task forces for their time, effort and expertise.

The Ministry acknowledges the contribution of Council on Energy, Environment and Water (CEEW) as a key
knowledge partner for development of the overall report and providing crucial support to the formation
of task forces. Apart from the authors, contributions from Sanyogita Satpute, Kartheek Nitturu, Pratheek

Introduction, Taxonomy, Demand Generation, Renewable Energy, Green Hydrogen, CCUS, Process Transition
for DRI, RD&D, Governance Framework, Action Plan, and Roadmap. Additionally, the Ministry recognizes
The Energy and Resources Institute (TERI) for its valuable contributions as a knowledge partner to the task

appreciates the continuous support from Shakti Sustainable Energy Foundation (SSEF) in advancing green
transitions within the steel sector.

Finally, the Ministry extends its sincere thanks to all others who contributed to the development of this
report.

|V
Table of
CONTENTS

Executive summary .......................................................................................................................................................1

1. Introduction...........................................................................................................................................................24

1.1. Indian steel industry at a glance.......................................................................................................................... 26

1.2. Overview of the global steel industry................................................................................................................. 36
1.3. Review of CO2 Emissions in the steel sector .................................................................................................... 38
1.4. Government of India’s initiatives to combat climate change in the iron and steel sector................41
1.5. Initiatives by the Indian steel industry .............................................................................................................. 49

2. Developing Taxonomy for Green Steel .........................................................................................................52

2.1. Introduction .................................................................................................................................................................53
2.2. Developing taxonomy for green steel..................................................................................................................53
.................................................................. 54
2.4. Indian scenario of green taxonomy .................................................................................................................... 58
2.5. Challenges.................................................................................................................................................................... 58
...................................................................................... 60
............................................................................... 60
........................................... 64
2.9 Action Plan................................................................................................................................................................... 64

3. Monitoring CO2 emissions .................................................................................................................................66

3.1. Introduction .................................................................................................................................................................67
3.2. Global Scenario...........................................................................................................................................................67
3.3. Indian scenario............................................................................................................................................................72
3.4. Challenges.....................................................................................................................................................................74
3.5. Proposed approach ...................................................................................................................................................74
3.6. Action Plan....................................................................................................................................................................77

4. Demand Generation ............................................................................................................................................78

4.1. Introduction .................................................................................................................................................................79
4.2. Global and Indian scenarios..................................................................................................................................80
4.3. Challenges.....................................................................................................................................................................87
4.4. Evolution of GPPP in India...................................................................................................................................... 89

VI |
GREENING THE STEEL SECTOR IN INDIA

4.5. Measures to increase private demand for green steel...................................................................................97

4.6. Action plan...................................................................................................................................................................98

5. ............................................................................................................................................... 100
5.1. Introduction ...............................................................................................................................................................101
5.2 Global Scenario.........................................................................................................................................................101
5.3 Indian Scenario ........................................................................................................................................................ 102
5.4 Benchmarking energy consumption of iron and steel industry..............................................................................103
5.5 Best Available Technologies for the iron and steel industry .....................................................................107

projects ........................................................................................................................................................................112
5.7 CAPEX required for implementing BATs ............................................................................................................113
5.8 Action plan..................................................................................................................................................................113

6. Renewable Energy Transition ........................................................................................................................ 116

6.1. Introduction ............................................................................................................................................................... 117
6.2. Global Scenario: Renewable Energy................................................................................................................... 117
6.3. Indian Scenario: Renewable Energy ..................................................................................................................118
6.4. Electricity Requirement of the Steel Sector.....................................................................................................122
6.5. Challenges Faced by the Steel Players in RE Integration.............................................................................125
6.6. Projection of Electricity Requirement for Steel Sector in 2031..................................................................131
6.7. State-wise RE Requirement in the Captive Electricity Demand in the Steel Sector ..........................133
6.8. Reduction in CO2 Emissions due to RE Penetration ..................................................................................... 134
6.9. Capex Requirement for RE Penetration in the Captive-based Steel Sector..........................................135
6.10. Modes of RE Uptake in the Steel Sector ..........................................................................................................135
6.11. Landed Cost Comparison and Cost Implications of Energy Transition.................................................. 138
6.12. Recommendations.................................................................................................................................................. 144

7. .............................................................................................................................................152

7.1. Introduction ...............................................................................................................................................................153

..............................................................................................................................................................153
7.3. Pelletisation .............................................................................................................................................................. 158
7.4. Scrap utilisation........................................................................................................................................................161

8. Green Hydrogen..................................................................................................................................................166
8.1. Introduction ...............................................................................................................................................................167
8.2. Global and Indian scenario for using green hydrogen in the steel sector ............................................167

| VII
GREENING THE STEEL SECTOR IN INDIA

8.3. Challenges...................................................................................................................................................................174
8.4. Green Hydrogen Use in the Steel Industry: Cost Implications and Emissions Reductions..............175
8.5. Possibilities for International and Multilateral Cooperation on Green Hydrogen ............................. 186
8.6. Action plan ................................................................................................................................................................ 188

9. Carbon capture, utilisation and storage (CCUS).......................................................................................190

9.1. Introduction ...............................................................................................................................................................191
9.2. Global scenario .........................................................................................................................................................192
9.3. Indian Scenario .........................................................................................................................................................192
9.4. Challenges with CCUS ............................................................................................................................................ 199
9.5. CO2 capture ................................................................................................................................................................ 201
9.6. Carbon capture and utilisation technologies ................................................................................................205
9.7. Carbon capture and Storage (CCS)...................................................................................................................... 211
9.8 Action Plan and proposed studies..................................................................................................................... 222

10. Process Transition for DRI Industry .............................................................................................................224

10.1. Introduction .............................................................................................................................................................. 225

10.2. Global Scenario ........................................................................................................................................................ 226
10.3. Indian Scenario .........................................................................................................................................................227
10.4. Comparison of various DRI processes ..............................................................................................................230
10.5. Challenges in Indian DRI making........................................................................................................................ 233
10.6. Transition in coal based DRI ................................................................................................................................ 235
.................................................................................................... 236
10.8. Natural gas efforts and plant for the Indian steel sector............................................................................237
10.9. Coke oven gas uptake for DRI production.......................................................................................................240
10.10. Hydrogen-based DRI production plans............................................................................................................ 243
10.11. Risks associated with coal and natural gas-based supply chains ........................................................... 244
10.12. Action plan................................................................................................................................................................. 244

11. Biochar for the iron and steel industry ......................................................................................................246

11.1. Introduction ...............................................................................................................................................................247

11.2. Global Scenario .........................................................................................................................................................247
11.3. India Scenario........................................................................................................................................................... 249
11.4. Categorisation of Biomass and surplus availability..................................................................................... 249
11.6. Suitability of Biochar for the Iron and Steel Industry ................................................................................. 254
11.7. Emission reduction potential of biochar in steel industry........................................................................258
11.8. Abatement accounting........................................................................................................................................... 259

VIII |
GREENING THE STEEL SECTOR IN INDIA

11.9. Cost-effectiveness of Biochar utilisation for the steel industry .............................................................. 259
11.10. Projection of bio-char demand in iron and steel industry .......................................................................260
11.11. Challenges Associated With Biochar Availability ...........................................................................................261
11.12. Action plan.................................................................................................................................................................. 262

12. Research, Development & Demonstration (RD&D) ............................................................................... 266

12.1. Introduction ...............................................................................................................................................................267
12.2. Technologies in steel manufacturing.................................................................................................................267
12.3. RD&D scenario in green steel technologies ...................................................................................................268
12.4. RD&D roadmap for the Indian steel sector......................................................................................................275
12.5. Institutional mechanism for oversight of green steel RD&D in India ....................................................288
12.6. Action plan for RD&D .............................................................................................................................................289

13. Finance.................................................................................................................................................................. 290

13.1. Introduction ...............................................................................................................................................................291
13.2. Potential pathways for decarbonisation .....................................................................................................291
13.3. Barriers to Accessing Finance ............................................................................................................................. 292
13.4. Action plan ................................................................................................................................................................299

14. International Focus............................................................................................................................................314

14.1 Introduction ...............................................................................................................................................................315
14.2 State of Play: Steel Sector Decarbonisation in Major Countries...............................................................315
14.3 Global platforms for collaboration: Steel Sector Decarbonisation.........................................................330
14.4 Indian Steel Players with Global Partnerships................................................................................................331
14.5 Challenges on international collaboration by Indian Steel Producers for decarbonising the steel
sector........................................................................................................................................................................... 332
14.6 Strategic areas for international collaboration ............................................................................................ 332
14.7 Key Lessons for India and Areas of Intervention .......................................................................................... 334
14.8 Action plan..................................................................................................................................................................337

15. Skill Development............................................................................................................................................. 340

15.1 Introduction ...............................................................................................................................................................341

15.2 Global Scenario.........................................................................................................................................................341
15.3 Indian Scenario .........................................................................................................................................................341
15.4 Mapping green jobs and greening of jobs in value chain .......................................................................... 342
15.5 Skill requirements in Indian Iron and Steel sector ...................................................................................... 343
15.6 Skill Infrastructure................................................................................................................................................... 345

| IX
GREENING THE STEEL SECTOR IN INDIA

15.7 Projections for skilling/reskilling/upskilling requirements in iron and steel sector.................................. 346
15.8 Challenges for skill development in the iron and steel sector ................................................................ 349
15.9 Framework for skilling/reskilling/upskilling pathways ..............................................................................350
15.10 Action Plan.................................................................................................................................................................351

16. Governance Framework ...................................................................................................................................356

16.1. Introduction ...............................................................................................................................................................357
16.2. Governance Framework..........................................................................................................................................357
16.3. Roles and responsibilities of the committees ...............................................................................................358
16.4. Conclusion ................................................................................................................................................................. 363

17. Action plan and roadmap ............................................................................................................................ 364

17.1. Introduction .............................................................................................................................................................. 365

17.2. Major targets ............................................................................................................................................................. 365
17.3. Strategy for Transition ...........................................................................................................................................366
17.4. Emissions intensity trajectory for the steel sector.......................................................................................368
17.5. Roadmap ....................................................................................................................................................................369
17.6. Action Plan................................................................................................................................................................. 370
17.7. Nodal agencies for all the action items ............................................................................................................372
17.8. Implementation Mechanism.................................................................................................................................379
17.9. Review & Monitoring ...............................................................................................................................................379

18. List of Abbreviations........................................................................................................................................ 380

19. Annexures............................................................................................................................................................ 385

20. References............................................................................................................................................................395

X|
GREENING THE STEEL SECTOR IN INDIA

EXECUTIVE SUMMARY
India is currently one of the fastest-growing economies in the world. However, several challenges confront
India’s development agenda, including climate change. It is seen that India’s historical contribution to the
accumulation of GHGs is about 4%, even though it is home to 17% of the global population. Nevertheless,
India is committed to combating climate change by making development choices that can ensure economic
growth along the low-carbon pathways. Further, India has revised its nationally determined contributions
(NDCs) and has achieved considerable progress in deploying renewable energy (RE) capacity and greening
the grid. However, achieving the aggressive climate goals such as 2070 net zero targets will also require India
to decarbonise its industrial sector, including steel.

India is the second largest crude steel producer in the world, with a capacity to produce 179.5 million tonnes
of crude steel and the largest production capacity of sponge iron in the world at 55 million tonnes in FY 2023
-24. However, the per capita steel consumption in India is only 97.7 kg in FY 2024 compared with the global
average per capita consumption of 221.8 kg in 2022. The National Steel Policy 2017 aims to increase the per
capita consumption to 160 kg by 2030. Therefore, given India’s lower per capita steel consumption, it is
expected that India’s steel sector will continue to grow rapidly even beyond 2030.

have a higher share of scrap in total steel production, pellet uptake is high, the grid is less carbon-intensive,
and low-carbon fuels like natural gas are available at affordable prices. Conversely, India has a limited scrap

whose usage increases overall energy consumption and emissions. In addition, integrated steel plants (ISPs)

than cleaner grids in developed countries. In summary, the Indian steel industry is constrained to use coal-
based blast furnaces and rotary kilns for steelmaking due to a lack of affordable alternatives. Consequently,
the emission intensity of steel produced in India, at 2.54 T CO2/T Crude Steel (tCO2
higher than the global average of 1.91.

The steel industry accounts for 10-12% of India’s total emissions. Therefore, the sector’s decarbonisation is
imperative for India to meet its climate goals. In response to India’s climate commitments and in a bid to
create a globally competitive and sustainable steel industry, the Ministry of Steel constituted 14 task forces that
cover the pertinent aspects of decarbonisation of the steel industry. The initiative, summarised in Figure ES1,
focuses on three key pillars: the incentivisation and ecosystem development for green steel, levers to enable

14 task forces and contains a harmonised action plan for steel decarbonisation in the country.

Executive summary |1
GREENING THE STEEL SECTOR IN INDIA

Figure ES1: List of task forces constituted by the Ministry of Steel

Incentivisation and ecosystem development

policy for decarbonising the sector and creating demand for products with green attributes. Globally, there

producing ‘fossil-free’ and ‘near-zero emissions’ steel is prohibitively high today. Further, the disparity in
the availability of resources like natural gas, scrap, etc. and different milestone years across countries for

across various production pathways and creating an ecosystem equipped with monitoring, reporting

decarbonisation of the sector.

deliberation would be to have scrap-agnostic or scrap-centric targets on the emission intensity of steel
that can be further used to estimate the amount of green steel. Further, given the heterogeneity of India’s
steel industry, the emissions intensity targets could either be production route agnostic or production route

emissions intensity can be considered for categorising steel based on emissions intensity. The future targets
on emissions intensity of steel could either be dynamic, implying that it can be changed in the future based
on the progress achieved, or it can be a static value where, irrespective of the progress made by the sector,
the targets for future years will not be changed.

2| Executive summary
GREENING THE STEEL SECTOR IN INDIA

Figure ES2:

There are also deliberations on whether green steel should be ‘near-zero emissions’ and ‘fossil-free’ steel
based on absolute emissions intensity values or should India incentivise incremental decarbonisation of
existing production pathways based on the targeted emissions intensity. Further, the scope of emissions
accounting for both downstream and upstream processes is also a critical aspect. For downstream processes,
the key design consideration would be on whether there should be product-level emissions intensity
accounting or emissions intensity should be measured only till crude steel. On upstream emissions, the
key deliberation could be on whether complete or limited scope 3 emissions be considered. India has an

that aligns with its larger climate goals.

of green steel in India.

Monitoring CO2 emissions

While there are multiple methodologies proposed for CO2 emissions monitoring globally, the integrated
steel plants (ISPs) in India follow the World Steel Association (WSA) methodology for voluntary emissions
disclosure as a part of their sustainability practice. Although steel plants report and monitor their scope 1
and scope 2 emissions, scope 3 emissions, which include upstream (procurement of raw materials, shipping)
and downstream (transport, warehouse management, scrap processing) emissions, are complex due to lack
of data and clarity and thus, scope 3 emissions are not fully adopted internationally. There are a number of
challenges for monitoring CO2 emissions in the Indian iron and steel industry, such as a complex network of

Executive summary |3
GREENING THE STEEL SECTOR IN INDIA

for GHG calculations; primary data sources, often maintained on multiple platforms (interoperability)
within the organisation, not integrated or accessible to all stakeholders; lack of adequate infrastructure for
measuring and monitoring the data; lack of skilled experts who can perform carbon measurement, life cycle
analysis, data management and established data quality processes.

The upcoming India Carbon Market (ICM) will necessitate mandatory emissions monitoring of all obligated
entities, including the iron and steel sector. BEE is the nodal agency for implementing ICM in India and
will publish the Compliance Procedure for the obligated entities along with the monitoring, reporting and

be covered, development and implementation of the monitoring plan, collection of activity data, application
of emission factors, fuel quality testing to determine the emissions factors, calculation of absolute emissions

(MRV) in the Indian steel industry. In this regard, the Ministry of Steel may coordinate with BEE to develop
a protocol for measuring emissions from all the sector steel plants, including those that are not covered as
Obligated Entities under CCTS. Further, the Ministry of Steel may coordinate with BEE to develop a dataset
for default emission values for all those input materials where the data is not available, with the help of the
industry stakeholders.

Demand generation
There is a need to create a demand-side pull for green steel in India to accelerate the decarbonisation of
the sector. This can be achieved by developing a consumer base in the public and private sectors that can
pay a premium for green steel. While globally, there are many initiatives for green public procurement (GPP)

few initiatives have been able to create demand for green steel (or any other related terminology) amongst
consumers in the private sector, including a few from India. However, it has not led to any green steel offtake,
given that most signatories have committed to consuming green steel by 2030-31 and beyond.

There are multiple challenges to the public and private consumption of green steel in India. For the public
sector, any premium on green steel is likely to impact the pace of infrastructure deployment in the country.
Further, the decentralised nature of public procurement in India will be a challenge in the implementation
of GPPP. The macroeconomic implications of GPPP are not fully understood for a developing economy like
India. India is also a price-sensitive market. Any increase in the cost of a white good or an automobile due
to the procurement of green steel might affect the competitiveness of the manufacturer, and it risks losing

to create a big market for green steel in India. There are also ecosystem challenges related to the MRV

The total steel consumption by the public sector in India is expected to increase from 25 MT in 2022-23 to 67 -73
MT by 2030-31. As shown in Table ES1, steel consumption constitutes only ~18% of the total cost of infrastructure

Figure ES3, even a 30% premium on green steel and 20% replacement of conventionally produced steel with
green steel will increase the cost of infrastructure projects by only 1.1%. Similarly, based on global studies, the
impact on private sector goods like automobiles and white goods is also expected to be minimal at 0.5-1%.

4| Executive summary
GREENING THE STEEL SECTOR IN INDIA

Table ES1: Budgetary Impact of public procurement of green steel

With green With green With green

Base case
Unit steel premium steel premium steel premium
(FY 2023)
@10% @20% @30%

Steel Cost INR/tonne 55000 60500 66000 71500

Government steel
consumption for MT 25 25 25 25
infrastructure in 2023

Total cost of steel INR lakh

1.38 1.51 1.65 1.79
procurement crore

INR lakh
Infrastructure expense 7.5 7.5 7.5 7.5
crore

Steel cost as share of

% 18% 20% 22% 24%
total infrastructure cost

Budget Impact % - 1.83% 3.67% 5.50%

Figure ES3: Impact of green steel procurement on infrastructure sector

The Ministry of Steel is keen to create a demand for green steel in India by developing the framework for
the Green Public Procurement (GPP) policy for the steel sector, which could then be taken up by the Ministry
of Finance for development and action. The Ministry of Steel may set up an agency along the lines of EESL
for bulk procurement of green steel to facilitate consumption in both public and private procurement. The
Ministry of Steel may also prioritise developing an ecosystem for green steel production and consumption by
creating a robust MRV system for emissions accounting, a registry of green steel production and consumption,

through voluntary disclosure of scope 3 emissions by end-users of steel, reviewing of green building codes,
enhanced Environmental, Social and Corporate Governance (ESG) rating points for green steel consumers
and other measures on these lines.

Executive summary |5
GREENING THE STEEL SECTOR IN INDIA

Decarbonisation levers

capture utilisation and storage (CCUS) and biomass are key levers to decarbonise India’s steel industry.

of production. The perform, achieve and trade (PAT) scheme, implemented by BEE, has been instrumental in

of 6.137 million tonnes of oil equivalent (Mtoe) up to Cycle V (2019-22) exceeding the targeted energy savings
of 4.575 Mtoe and contributed to 24% of total energy savings achieved in the country under the PAT scheme.

route in India is 6.0-6.5 Gcal/tcs, whereas the global average SEC is 4.5-5.0 Gcal/tcs. The theoretical SEC for the
BF-BOF plant is 4.0 Gcal/tcs. Similarly, as shown in Figure ES5, the average SEC of Indian coal direct reduced iron

Gcal/tcs for the average DRI-EAF plant

Figure ES4:

Figure ES5:

6| Executive summary
GREENING THE STEEL SECTOR IN INDIA

Energy consumption in the steel sector can be reduced by adopting the best available technologies (BATs).
There are many proven BATs for the BF-BOF and the DRI- EAF/IF route that can help achieve the global best
energy consumption norms. However, the average penetration rate of the BATs in ISPs is only ~50-60%, and
it is much lower than 50% for the secondary steelmaking processes. Figures ES4 and ES5 depict the potential

different sub-processes in both production routes.

EE technologies within existing units due to layout/space constraints. In a few cases, steel plants prioritise

faces challenges due to the high capital cost of EE technologies, lack of awareness of potential gains from

The Ministry of Steel is keen on promoting the deployment of EE technologies in the steel sector. In this
regard, the Ministry of Steel may work towards developing mandates for the implementation of BATs in the

set benchmarks and energy-saving targets for different steelmaking routes. The Ministry of Steel may also
work with BEE to increase the number of obligated entities (OE) of the iron and steel industry under the CCTS
scheme from the present level. Furthermore, the Ministry may also develop a policy to promote the adoption

(AI), Machine Learning (ML) and advanced analytics for medium/ big steel plants. Additionally, The Ministry
of Steel may strengthen national institutes and industry associations to provide technical support for the

Renewable energy

the existing production process. Electricity consumption in the steel sector is expected to increase from 94
TWh in 2021-22 to 184 TWh by 2030-31. ISPs are expected to account for 53% of the total power consumption,
while SSIs will account for the remaining 47%. As of FY 22, renewable energy (RE) penetration is estimated to
be 7.2% of the total electricity requirement in the steel sector. The share of RE power in the ISP’s electricity
requirement is around 3% owing to higher reliance on thermal captive power and around 11% in SSIs due to
higher reliance on grid power with higher RPO (Renewable Purchase Obligation) compliance.

penetration in the captive sources (0.39%) and RPO target of 43.33% in the grid power (BAU scenario), the RE
penetration in the steel sector will rise to 16.3% (from the current level of 7.2%), and at 30% penetration of
RE in the captive sources the steel sector will achieve 35% of RE penetration. The steel sector would require a
capex of INR 73,861 crores to achieve the overall RE penetration of 43.33 per cent by 2030-31. This will lead to
a reduction in CO2 emissions with an overall decrease in the electricity emission intensity (tCO2/MWh) from
0.85 in 2021-22 to 0.78 in 2030-31 in the BAU scenario and to 0.60 with 30 per cent RE penetration in captive
sources. As shown in Table ES2, the RE penetration will lead to a reduction in the emission intensity of the
steel sector (tCO2/tcs) from 2.54 in 2023 -24 to 2.46 in 2030-31 in the BAU Scenario, to 2.41 in Scenario 1, to 2.38
in Scenario 2 and to 2.35 in case of Scenario 3. With 43% RE penetration in the steel sector by 2030-31 will
lead to an emission reduction of 8% from 2.54 to 2.35 tCO2/tcs

Executive summary |7
GREENING THE STEEL SECTOR IN INDIA

Table ES2: 2

Scenario 1 Scenario 2 Scenario 3

Sr. No. Parameters for 2030 Scenario BAU (20% RE in (30% RE in (43.33% RE in
Captive) Captive) Captive)

1 Grid power 53,878 MU

2 Grid RE penetration 43.33%

3 Grid CO2 factor 0.46 tCO2/MWh

4 CO2 from grid 24.9 mn tCO2

5 CPP power 91,741 MU

6 CPP RE penetration 0.39% 20% 30% 43.33%

7 CPP CO2 factor 0.96 tCO2/MWh 0.77 tCO2/MWh 0.68 tCO2/MWh 0.55 tCO2/MWh

8 CO2 from CPPs 88.5 mn tCO2 71.0 mn tCO2 62.2 mn tCO2 50.3 mn tCO2

9 Total CO2 113.3 mn tCO2 95.9 mn tCO2 87.0 mn tCO2 75.2 mn tCO2

0.78
10 Overall CO2 factor 0.66 tCO2/MWh 0.60 tCO2/MWh 0.52 tCO2/MWh
tCO2/MWh

Emission intensity
11 2.46 2.41 2.38 2.35
of steel (tCO2/tcs)

Among the various modes of RE power procurement, the cost of RE power is lowest in the intrastate captive
RE plant procurement mode due to low transmission losses and waiver on open access charges. Declining
trends in the cost of renewable energy have reduced the price of power from the new RE plant as compared

lack of consistency and long-term visibility of policies and lack of awareness among the SSIs.

MoS has taken an ambitious target of RE penetration of 45 per cent by 2030-31. To overcome the challenges
w.r.t RE adoption, the Ministry of Steel may set up a coordination cell to provide support to the SSIs across

opting for captive/third party RE open access through - line of credits from MDBs, GST Reimbursement for
Captive RE Projects, credit from coal cess and setting up of the Payment Security Reserve Fund. Supporting

price or VPPA model are some of the other interventions that the Ministry of Steel may carry out to enhance
RE penetration among the steel industries.

sector. Out of the total iron ore (hematite) availability of 24,058 MT in India, only 12% is high-grade ore while

8| Executive summary
GREENING THE STEEL SECTOR IN INDIA

improves the BF productivity by 2% and reduces the coke consumption by 1%.

units and dispose of tailings through effective management techniques. The Ministry of Steel may also
endeavour to develop a production-linked incentive (PLI) scheme and facilitate public-private partnerships
for joint technology development in a cost-effective manner.

production capacity of 136.7 MTPA, India’s pellet production stood at 84 MT i.e., 61% of the total capacity.
There are challenges with respect to high power cost, infrastructure and logistic challenges for managing

amenable to various ore types. The Ministry of Steel may support the consumption of pellets in the steel
industry by incentivising the integration of pellet-making units within ISPs and large DRI plants, ensuring
water availability while incentivising the uptake of low-water intense technologies and supporting provisions
for land banks near steel plants and ports.

Each ton of scrap saves 1.1 tonnes of iron ore, 630 kg of coking coal, and 55 kg of limestone while cutting
water consumption and GHG emissions by 40% and 58%, respectively, compared to the reduction of iron ore.
However, there are manifold challenges related to scrap utilisation in India. The scrap recycling process in
India relies on manual dismantling and segregation of scrap components, which increases the cost of scrap
processing. Furthermore, the scrap recycling ecosystem operates informally, resulting in fragmentation,
non-compliance with regulations, and low-quality scrap production. India is also import dependent on
scrap availability for its secondary steelmaking units. However, the evolving geopolitical situation regarding
restrictions on scrap exports from developed countries will exacerbate the challenges for incorporating

overcoming these challenges by establishing circular economy parks and recycling zones, incorporating
Extended Producer Responsibility (EPR) and integrating the informal sector by granting industry status to
the recycling sector and developing an e-marketplace for the unorganised sector. Further, the Ministry of

policies to incentivise the adoption of BATs in the recycling sector.

Green hydrogen
Green hydrogen can be used in blast furnaces and gas-based shaft furnaces as a substitute for fossil fuels,
thus reducing carbon emissions. It can also be used to produce 100% hydrogen-based DRI or in-horizon
technologies like hydrogen plasma reduction. Globally, there have been a few pilots on hydrogen injection
either on an experimental or a large capacity blast furnace. Similarly, there have been pilots on replacing
natural gas with green hydrogen up to 90%. Further, there exists one pilot on a 100% hydrogen-based
DRI plant, and many are being planned or implemented. In India, Tata Steel has demonstrated hydrogen
injection in blast furnaces while JSW is planning for hydrogen injection in shaft furnaces. There are also
research efforts on a laboratory scale for hydrogen plasma smelting reduction.

Executive summary |9
GREENING THE STEEL SECTOR IN INDIA

The Indian steel industry can theoretically consume 1.8 MTPA of green hydrogen in 2023-24, which can
potentially increase to 3.5 MTPA by 2030-31. As indicated in Figure ES6, hydrogen injection in BFs is limited
to ~15 kg/tcs and can reduce coke consumption by 45-60 kg and decrease the emissions by ~190 kg CO2/tcs

at 0.48-0.88 USD/kg for a coking coal price of USD 180-260/tonne. Similarly, as indicated in Figure ES7, for
shaft furnaces, green hydrogen can replace 60-70% of the total gas consumption and reduce the emissions
intensity of steel by ~340 kg CO2/tcs. The breakeven price of hydrogen ranges from USD 0.75-2.02/kg for a

utilisation in the blast and shaft furnaces can be attributed to the high capex required for modifying the
furnaces.

Figure ES6:

Figure ES7:

It is expected that under certain aggressive assumptions where green hydrogen reaches a price of 1 USD/
kg and incumbent natural gas at 9.5 USD/MMBtu is commercially viable, the steel industry can potentially
consume up to 1.1 MTPA of green hydrogen by 2030-31. Green hydrogen consumption in the steel sector
faces challenges from the lack of a fully developed ecosystem, geographic hurdles in the availability of
green hydrogen in India’s steel belt and high production costs. Further, green hydrogen has a limited role in

till 2030-31. This is because ISPs are planning for capacity expansion through the blast furnace route, where

10 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

green hydrogen has a limited uptake potential. There are also challenges related to technological maturity,
lack of experience in handling hydrogen by the steel industry and high upfront capital requirements for
setting up green hydrogen plants.

The Ministry of Steel may support pilot projects across all three end-use applications of green hydrogen -
hydrogen uptake in the blast furnace, hydrogen blending in an existing shaft furnace and a 100% hydrogen-

Ministry of Steel may also develop experimental blast furnaces and shaft furnaces in India for trials with
hydrogen injection. Further, the efforts at international and multilateral collaborations may be accelerated

Carbon capture, utilisation and storage (CCUS)

CCUS is essential for the deep decarbonisation of the steel sector. It is estimated that 56% of the emissions
from existing steel production technologies can only be mitigated through the CCUS pathways. CCUS involves
2
on carbon capture exists, and there are a few pilots in the Indian steel industry. The key challenge with CO2
2
to less than 20 USD/tonne CO2. This
2
to some other industrial processes that have higher concentrations. Further, the steel industry today lacks
clarity on steps after carbon capture due to the premium on products obtained with CO2 utilisation and the
lack of ecosystem development on storage.

It is observed that most CCU applications need CO2 purity exceeding 99%, implying that CO2 capture is
inevitable. Another key challenge with CCU is that, as indicated in Table ES3, the cost of mitigation for green
hydrogen-based fuels and chemicals can be prohibitively high, around 300-500 USD/tonne CO2, which
can increase the cost of steel by up to 100%. Therefore, it is expected that CCU will be the least preferred

renewable energy to mitigate their emissions. Consequently, it is important that non-green hydrogen-based
CCU applications like carbonates and new applications like carbon recycling for producing iron from iron
ore are also explored on priority.
Table ES3: Impact of CCUS on steel production cost

CCS CCU*

Base- Best-
Methanol SAF SNG Carbonates
case case

Cost of steel (USD/tcs) 688 688 688 688 688 688 688

Emissions intensity (tCO2/tcs) 2.46 2.46 2.46 2.46 2.46 2.46 2.46

Cost of abatement (USD/tCO2) 64 26 503 508 506 553 42

Share of emission abatement

59% 59% 59% 59% 59% 59% 59%
through CCUS in BF (%)

Increase in cost of steel (USD/

92.89 37.74 730.05 737.31 734.41 802.62 60.96
tcs)

Increase in cost of steel (%) 14% 5% 106% 107% 107% 117% 9%

Executive summary | 11
GREENING THE STEEL SECTOR IN INDIA

India has a theoretical CO2 storage potential of 395-614 GT across saline aquifers (291 GT), basalt (97-316 GT),
enhanced oil recovery (EOR) (3.4 GT) and enhanced coal bed methane recovery (ECBMR) (3.7 GT). Considering
the above-ground challenges, the realisable storage potential is around 101-359 GT. However, there is no
estimate on the true CO2 sequestration potential in India based on actual site characterisation, which creates

ECBMR, sequestered CO2 has limited economic value, CCS will always have a positive cost of CO2 mitigation,
implying that the cost of steel will most likely increase due to CCS. Also, currently, there is no policy for CCS,
and there are no clear governance structures across the value chain. There is also limited experience in the
transportation and storage of CO2 as there are no pilot projects in India.

To overcome the challenges associated with the CCUS ecosystem in India, the Ministry of Steel may
coordinate with NITI Ayog and other Ministries/Departments and extend support in developing a dedicated,
objective-based and dynamic policy for CCU and CCS technology deployment. Further, technology providers

proposals. The Ministry of Steel may also develop an RD&D roadmap for scaling up CCUS technologies
in the steel sector, focusing on indigenising critical value chain components and establishing India as a
leader in manufacturing these technologies. The Ministry of Steel may coordinate with other government

rely on available geological and geophysical data. The Ministry of Steel may also coordinate with other
Ministries to develop policy guidelines for preferential procurement of CCU products manufactured in steel
plants to scale up the technology development and deployment in India.

Process transition
India’s DRI industry is predominantly coal-based, where rotary kilns constitute approximately 80% of the

transition due to no reliable estimate on the injection of alternative fuel in kilns and lack of adoption of

constrained to use domestically high-ash coal and low-grade iron ore, which in turn increases the overall
emissions from the sector.

Natural gas is a potential bridge fuel to

green hydrogen. On a life cycle basis, natural
gas-based steel production has ~30%

rotary kiln-based production processes.

However, access to affordable natural gas
is an impediment to the decarbonisation of
the steel industry. Only 21% of the existing
BF capacity and 5% of the coal-based DRI
capacity have access to gas pipelines (i.e.,
assuming they are within 25 km of a gas
transmission pipeline). Further, the steel
Figure ES8:
industry needs gas at 6-8 USD/MMBtu to be

the location of the end consumer. A natural gas cost curve, shown in Figure ES8, developed based on inputs
by major ISPs suggests that the industry has an appetite to consume 10 BCM of natural gas for a price of 4
USD/MMBtu, reducing to 0.53 BCM for a gas price of 9 USD/MMBtu.

12 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

technologies, available for large-capacity DRI plants, have primarily been developed for the use of low-
ash coal. Consequently, these technologies face challenges in utilising domestic high-ash coal to produce

furnaces. The Ministry of Steel may support the DRI industry in overcoming challenges for process transition
the action items indicated in Figure ES9.

Figure ES9: Challenges and action plan for ensuring process transition in the DRI sector

Biochar for Iron and Steel sector in India

Heavy reliance on coal and coke in iron and steel-making processes (i.e. for process heat and as a reducing
agent) is the predominant source of carbon emissions. Biochar, which is an alternate renewable resource
produced from biomass and other farm residues, has the potential to lower the carbon footprint in the iron
and steel industry. Additionally, biochar, as an alternate fuel to coal and coke, has comparable metallurgical

Globally, the use of biomass in the production of iron and steel has been steadily rising, though it is still far
less than that of conventional fossil fuels. Several countries across the globe have been utilising biochar in

Executive summary | 13
GREENING THE STEEL SECTOR IN INDIA

facilities. The iron and steel manufacturers in India such as Tata Steel, JSW and power generator NTPC

Biomass, which is a renewable resource used to produce biochar, can be broadly grouped into the following
categories: crop residues, bamboo, forest residues, and bagasse. As per MNRE’s recent study, the total surplus
biomass from crop residue generated annually in the country is 228.52 MT. The surplus biomass generated
could be one of the sources for biochar production, which in turn needs some preprocessing before it is
converted into biochar. The biomass, when subjected to different thermochemical conditions through

line with the requirements of the iron and steel industry. This biochar can be utilised in various processes in
the Iron and steel industry replacing coal and coal as an alternate fuel. The potential applications of biochar
include iron ore sintering, raw material mix in pellet making, coal blend in coke making, PCI replacement in
blast furnaces, coke replacement in blast furnaces, replacing non-coking coal in DRI production in horizontal
rotary kilns, and for utilisation in electric arc furnaces.

Biochar has an emission reduction potential of up to 1.19 tCO2/tcs. To realise the decarbonisation goals of
the iron steel steel industry one of the leavers is the utilisation of biochar. However, there are challenges
associated with the collection of large quantities of biomass to meet the biochar demand of the iron
and steel industry they are inadequate players in the ecosystem i.e (biomass supply chain), the absence

biomass collection. The absence of storage infrastructure & market mechanisms, the data associated with

biochar in the iron and steel industry. Limited schemes and incentives in a few states to promote energy
crop plantations such as bamboo, hence limited participation from the farmer community, are adding to the
development constraint of the supply chain ecosystem of biochar.

To ensure sustainable production, transportation, and utilisation of biochar in the Iron and steel industry, the
Ministry may take certain initiatives to enable the smooth transition to biochar in the Iron and steel industry.
Some of the suggested measures are to support activities to develop and promote indigenous technologies
by providing R&D support for clean technologies, blending mandate, Public-Private-Partnership (PPP) for
strengthening industry, research labs, and academia interface for carrying out coordinated & collaborative
research, developing market mechanisms like MSP (Minimum Support Price) support, working capital
support for biomass aggregator, encouraging cultivators to access priority loans under the non-traditional
plantations option to name a few.

Supporting transitions in the steel sector

the four pillars for supporting transition in the steel sector.

Research, development, and demonstration (RD&D)

RD&D activities are critical for enabling a sustainable transition in the iron and steel sector and positioning
India as a leader in technology development. Hydrogen-based DRI production, aqueous (SIDERWIN) and
molten oxide electrolysis are the key breakthrough technologies for iron production that are important for

14 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

India. However, the use of hydrogen for DRI production is the most prominent research topic worldwide.
The key learning from the analysis of global RD&D efforts in the steel sector is that the industry should

based government funding.

There are multiple challenges for RD&D in the steel sector. The RD&D expenses in India are 0.64% of gross

countries. Further, in India, the private sector contributes only 36% of the total RD&D expense, compared to
59-75% in developed countries. It is seen that the RD&D projects in green steel technologies require large
investments, often exceeding USD 50 million for demonstration projects that the private sector is reluctant to
invest. There is also no umbrella entity within India to coordinate RD&D activities amongst various research
groups and industries. In general, there is a reluctance amongst the steel industries to participate in RD&D
projects in a consortium mode due to challenges related to the sharing of intellectual property (IP) rights,
amongst other issues.

release a detailed RD&D roadmap for the steel sector in consultation with all stakeholders.

Table ES4:

Sr. No. Project domain Number of projects

1 Process transition 3

2 CCUS 6

3 Alternative fuels (H2) 3

4 Miscellaneous 4

5 6

6 1

7 Alternative fuels 2

Total 25

Finance
Global estimates for making the iron and steel sector net-zero range from USD 5.2-6.1 trillion. The existing
steel plants in India alone are estimated to need USD 283 billion investment to become green. The adoption
of best available technologies in the existing SSPs alone is estimated to be more than USD 13 billion and
cost of process transition is an additional USD 150 billion. Irrespective of the accuracy of these estimates, the

Executive summary | 15
GREENING THE STEEL SECTOR IN INDIA

From complexity of production processes and value chains, potentially locked in investments in carbon-
intensive assets, unviability of current low carbon technologies, inadequate experience, high capital costs
and operational expenditure, to high degree of variation in the scale of operations, there are many factors

Simultaneously, it is important to make the distinction between the domestic and international as well as

(particularly extending to the green and sustainability bonds market), expansion of a functional carbon
market under the Carbon Credit Trading Scheme (CCTS) and Carbon Contracts for Difference (CCfD) and
providing for technical assistance mechanisms as well as setting up dedicated funds to address both demand

availability. It would require strategic partnerships and collaborations with the multilateral banks and other

guarantee mechanisms, etc. In addition, careful utilization of the cooperative approaches as well as market-
based approaches under the Article 6 of the Paris Agreement can play a potentially transformative role. While

institutional mechanisms will be required to reduce the barriers of high transaction cost, lack of technical
knowledge, high risk perception and cost of capital.

In addition to creating an enabling environment such as introducing green taxonomy for the iron and steel

CCTS and CCfD, legal protection against risks, government needs to set up dedicated funds for viability gap

In institutionalise form, following interventions can be considered:

National Investment and Infrastructure Fund (NIIF) with equal contributions from government of India

A multi-stakeholder facilitative (technical assistance) platform

Supply chain linked market-based decarbonisation model

International Focus

often highly traded, serves global markets and its net zero transition involves the massive deployment

position the heterogeneity of current steel industries through facilitated discussions on the open and free

16 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

at decarbonising the steel sector.

Major countries where steel is produced including - China, Japan, Republic of Korea, Brazil, Turkey, Germany,
South Africa, Sweden and USA - have developed national policies and commenced research to identify steel
production methods using decarbonisation technologies. Key lessons from global experiences indicate a set
of areas of interventions by the Ministry of Steel.

Global experience illustrates that steel sector decarbonisation calls for higher outlays on public
infrastructure, public research, stimulus for private R&D, and possible deployment subsidies. Through
creating technology demonstration projects, the Ministry of Steel could support domestic steel players

timeline for commercialisation, where the Indian domestic steel players need support to implement such
technologies. As seen through global experiences, the Ministry of Steel may strive to create an innovation
fund for steel decarbonisation. The Ministry of Steel may consult and coordinate with other Ministries
and decide spending on green public infrastructure, public support for innovation, and possibly support
for deployment of existing low carbon technologies where commercially viability is not proven. Global

steel sector in the long run. The Ministry of Steel may consider acting as an anchor to form a consortium,
wherein steel players, academic institutions, research agencies can participate to have focused efforts on
establishing decarbonisation technologies in India.

countries for the abatement costs under an international agreement on decarbonisation and leverage

environmental or social improvement. Sustainability-linked loans and sustainability-linked bonds may be

used to raise money, where the debt is tied to a sustainability target for the issuer e.g. a greenhouse gas
emission reduction goal, as is evident from the global investments in energy transitions.

The Ministry of Steel may establish a global advisory council for India’s Steel Sector decarbonisation. The
proposed Global Advisory Council may enable access to a network of frontrunners for industry transitions,

recognises the need to establish India’s national green steel think tank. Global experiences exhibit that
national institutions and organisations have been key to aid implement the national vision of steel sector
decarbonisation. The Ministry of Steel may consider establishing India’s National Green Steel Think Tank
which may network and collaborate with key national institutions/organisations who are developing new
technologies and undertaking Research & Development in other geographies. The existing Steel Research &
Technology Mission of India (SRTMI) may be leveraged to establish India’s National Green Steel Think Tank.

Skill development
The iron and steel sector directly and indirectly employs about 2.8 million people. The sector is predominated
by small scale units having lower levels of productivity due to low level of skills of workers, usage of old
technology, dominant informal employment in the sector and high GHG emission intensity compared to the
world average. The manpower intensity in smaller units is generally higher compared to large Integrated
Steel Plants (ISPs). At the global level, out of a total 259 million (approx.) jobs in the industry, China accounts
for ~36% followed by India (30%). There are wide variations in labour productivity (330-2200 tonne crude
steel/man/year) across the world.

Executive summary | 17
GREENING THE STEEL SECTOR IN INDIA

The Indian iron and steel sector is currently facing a shortage of skilled manpower. The use of progressive
new technologies would necessitate reskilling and upskilling of existing manpower. It is estimated that
the reskilling and upskilling requirement over the next ten years would be approximately 0.5 million. Total

Rerolling, DRI, Foundry and overseas) is estimated to be 1.1 million in the same period of which 0.84 million
is attributed to decarbonisation and digitalisation. There will be a large number of indirect jobs created for
example in the Renewable Energy sector. The total cost of reskilling and upskilling the workers engaged in
the secondary sector over next 6 years (FY 2024-25 to 2029-30) comes to around Rs 400 Crore.

The skill infrastructure in the steel sector includes IITs, NITs, BPNSI, NISST, IISSSC, polytechnics and training
institutes run by ISPs. Several skill development programs like PMKVY, DDU GKY, NULM are also available for
skilling the manpower for the steel industry. This existing skill infrastructure needs to develop or modify
their courses for the decarbonisation requirement of the steel industry. Lack of availability of robust data
base on skills required in the sector especially secondary sector, shortage of specialised skills in renewable

sustainable transportation, and more rapid technological advancement, interdisciplinary knowledge, limited
training infrastructure, absence of industry institute linkage especially with secondary , competition with
other sectors and transitioning existing workforce are some of the skill challenges in implementation of the
decarbonisation technologies in steel sector.

The Ministry may plan to estimate skill requirements of the secondary sector, strengthen capacity building
for training need assessment, promote industry-academia collaboration, develop a mechanism for training
need assessments, skill matching and course revision mechanism with line ministries. These initiatives
can be funded using various existing government programs and rework the existing policies to bring skill
imparting under CSR activities. The resources from both the government and private sector will help to
skill the manpower in the sector leading to sustainability in the labour market. These skill development
pathways need continuous monitoring and evaluation to support decarbonisation.

Governance framework

A robust governance framework and an

institutional mechanism for monitoring and National Green
implementing action items are essential to ensure Steering
Steel Advisory
the effective implementation of the strategy and Committee
Group
action plan for the decarbonisation of the steel
sector. Figure ES10 represents the governance
framework for driving the green transition of the
Steel Sector in India. The Steering Committee is
Steel Research &
the apex decision-making body on all aspects of Executive
Technology Mission
transition. National Green Steel Advisory Group Committee
of India (SRTMI)
would advise the Steering Committee on the
research and technology front. The Executive Figure ES10:
Committee, reporting to the Steering Committee,
oversees the execution of policy recommendations by the Steering Committee by carrying out policy
formulations as well as coordination with other Ministries. The Steel Research & Technology Mission of
India, an existing Institute under the Ministry of Steel, is envisioned to be transformed into a pioneering
institute of the governance framework for decarbonising India’s steel sector. It will act as the central hub
for innovation, coordination, and implementation of green technologies and practices within the industry.

18 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

Action plan and Roadmap

India aims to become a global leader in green steel production and consumption through the adoption of
clean energy and advanced technologies and by promoting a circular economy to achieve net-zero emissions
by 2070. This will be accomplished by setting incremental decarbonisation targets for the steel industry,
implementing policy interventions for a smooth transition, creating enabling conditions, and ensuring just
transitions. Figure ES11 lists the key targets for ensuring transitions in the steel sector.

Figure ES11:

Figure ES12 shows the key strategies and the levers that are part of the decarbonisation strategy. The strategy

alternate fuels is another critical part of the strategy for the medium term. Natural gas is a bridge fuel to
green hydrogen, biomass is available domestically, while green hydrogen is a fuel for the future. Further, CO2
recycling for producing iron from iron ore offers an opportunity to reduce dependency on fossil fuels.

Figure ES12: Strategies for transition in the steel sector

Executive summary | 19
GREENING THE STEEL SECTOR IN INDIA

Most steel plants in India are geographically located within a few districts, while the SSIs mostly operate
in clusters. Therefore, a cluster-based approach might be suitable for accelerating decarbonisation in the
sector by providing access to alternative fuels like green hydrogen, biochar, syngas and deep decarbonisation
levers like CCS that can facilitate shared infrastructure, innovation, and resource optimisation. This approach

wherewithal to adopt high-cost interventions. Similarly, the aggregator model supports aggregating green
steel demand, the deployment of renewable energy and the uptake of natural gas on a larger scale by
pooling investments and resources. Finally, RD&D initiatives are crucial for driving innovation, developing
indigenous technologies and making India a manufacturing hub for new-age technologies.

India for the obligated entities under the ambit of Indian Carbon Markets through its Carbon Credit Trading
Scheme (CCTS). The proposed industry-wide targets for emissions intensity of steel are indicated in Figure
ES13. It is seen that under the CCTS scheme, it is aimed to reduce the average emissions intensity of steel
from 2.54 TCO2/TCS in 2023-24 to 2.2 TCO2/TCS by 2029-30.

Figure ES13: Proposed emissions intensity targets for the steel sector

The Ministry of Steel may support the steel industry for meeting the targets set by BEE and ensure
decarbonisation of the steel sector in India. Figure ES14 shows the timeline for major action items under each
of the task forces from FY 2025 to 2030. Some actions are immediate and short-term, such as developing a
2
emissions monitoring, set to be completed by

achieving 45% renewable energy penetration, and increasing the use of biochar and circular economy
practices. Certain initiatives, like demonstrating pilots for green hydrogen use and establishing pilot plants
for CCUS, are scheduled to start later in the timeline but are critical for long-term decarbonisation goals.

ensuring just transition, are ongoing efforts that will span across the years, ensuring sustained progress

reducing from 2.54 to 2.2 T/TCS. This may be achieved by the successful implementation of the roadmap.

20 | Executive summary
 GREENING THE STEEL SECTOR IN INDIA

Figure ES14: Roadmap for demand and supply side action items from 2025 to 2030.

Executive summary
| 21
GREENING THE STEEL SECTOR IN INDIA

Figure ES15 illustrates the roadmap for decarbonising the steel industry in India, highlighting key milestones
from 2023 to 2070. The journey begins in 2023 with the establishment of 14 task forces by the Ministry of

framework for green public procurement (GPP) will be developed, followed by initiatives to increase energy

testing of green hydrogen (GH2) and carbon capture, utilisation, and storage (CCUS) technologies. The period
leading up to 2047 involves deep decarbonisation through commercial GH2 steelmaking, advanced CCUS,
and breakthrough technologies like direct electrolysis. Finally, the roadmap aims to retire high-emission
capacity and achieve net zero emissions by 2070.

Figure ES15: Roadmap for net zero transition in India

22 | Executive summary
GREENING THE STEEL SECTOR IN INDIA

Executive summary | 23
CHAPTER 1

INTRODUCTION
GREENING THE STEEL SECTOR IN INDIA

India ranks as the world’s second-largest producer of crude steel, with production capacity of 179.5 million
tonnes (MT). It also holds the top position globally for sponge iron production, with a capacity of 60.5 MT in the
FY 2023-24. Presently, the steel sector contributes approximately 2% to the country’s gross domestic product

indirectly. Furthermore, the steel industry has an output multiplier of 1.4 and an employment multiplier of 6.8.
This sector is crucial for the country’s economic growth and supports its ambitious infrastructural plan.

India is currently one of the fastest growing economies in the world. However, a number of challenges confront
India’s development agenda, including that of climate change1,2. Historically, India’s contribution to the
accumulation of greenhouse gases (GHGs) is about 4%, despite housing 17% of the global population. India’s
per capita emissions are well below the global average and have drawn far less than its fair share of the
global carbon budget. Nevertheless, India is committed to combating climate change by making development
choices that promote the country’s economic growth and development along low-carbon pathways.

Figure 1.1 illustrates India’s broader climate goals as pledged at international forums. At the 26th

target setting up 500 gigawatts (GW) of non-fossil energy by 2030, meeting 50% of energy requirements
by 2030 with renewable energy (RE), reducing the projected carbon emissions by 1 MT by 2030, reducing
the carbon intensity of its economy by 45% by 2030 and achieving net zero emissions by 20703. This
was an enhancement of the earlier nationally determined contribution(NDC) of 2015.

Figure 1.1: India’s 2030 and 2070 targets for decarbonisation

(RE) capacity. Decarbonisation in other sectors, such as mobility, is underway due to multiple policies
formulated by the Government of India. However, the latest climate commitments include targets for 2030
and achieving net zero by 2070, which would necessitate deep decarbonisation of the industrial sector.
Given that the steel industry accounts for 10-12% of India’s total emissions, decarbonisation of the sector is
imperative for India to meet its climate goals.

Aligned with these goals, the Ministry of Steel has already embarked on a journey to meet future steel demand
in a sustainable manner and streamline efforts and strategies to transition towards low carbon emission
steel production, engaging with all the levers of decarbonisation of this sector. However, understanding
the current landscape of the Indian steel industry, as provided in the following sections, is imperative to
effectively plan and implement these crucial initiatives.

Introduction | 25
GREENING THE STEEL SECTOR IN INDIA

1.1. Indian steel industry at a glance

1.1.1 Overview of the Indian steel industry
Figure 1.2 shows an overview of the Indian steel Industry. India produces about approximately 7.4%
of the global steel output4 and is the second largest producer globally. The Indian steel industry has
grown at a compound annual growth rate (CAGR) of 7% since 2004. During FY 2024, the steel production
capacity increased by around 11.3% to 179.5 MT, while crude steel production rose by 13.4% to 144.3
MT. India produced approximately 51.56 million tonnes of sponge iron, making it the largest producer

consumption in India grew by 13.7% to 136.29 MT during FY2023-24. India is a net importer of steel. During

lower than the global average. While the per capita steel consumption in India increased to 97.7 kg in
FY 2023-24 from 86.7 kg in FY 2022-23, the global average per capita consumption was 219.3 kg in 20235.
Therefore, there is a concerted effort to raise the per capita steel consumption in the country, both in
urban and rural areas. The National Steel Policy 2017 aims to increase the production capacity to 300 MT
and consequently increase the per capita steel consumption to 160kg per capita by 2030-31.

Figure 1.2: 6

1.1.2. Different Routes of Steelmaking

Primary steel production involves three steps, as shown in Figure 1.3 below. First, raw materials are

depending on the ironmaking process.

In India, there are primarily three routes to iron production: Blast furnaces (BF) that produce hot metal
and two direct reduced iron (DRI) production methods, namely shaft furnaces using natural gas or syngas
or other industrial off gases as fuel and rotary kiln furnaces using coal as fuel. Iron produced is then
converted to steel through three main processes. Typically, the hot metal is converted into steel through
the basic oxygen furnace (BOF) route, while DRI is converted to steel in an electric arc furnace (EAF) and
an induction furnace (IF). Further, scrap steel is converted to crude steel using an EAF or IF. The larger
integrated steel plants (ISPs) typically use the BF-BOF and DRI-EAF pathways, whereas smaller plants use

26 | Introduction
GREENING THE STEEL SECTOR IN INDIA

Figure 1.3: 7

1.1.3. Growth of Iron and Steel Industry in India

The ironmaking capacity has substantially increased over the past two decades. Between 2002 and 2023,
the total ironmaking capacity has grown at a CAGR of 10%. The production of sponge iron, in particular,
has grown at a higher rate of 10.6%, while hot metal production grew at 7% during the same period.
However, the blast furnace remains the most dominant method for primary iron production today. India
has a small number (55) of large-capacity blast furnaces, while there are a large number (344) of small-
capacity sponge iron plants in India.

The growth in steel production is represented in Figure 1.4. Steel production in the country has grown at
a rate of 8% during 2002-2023. A higher growth of 8% and 12% was observed in EAF and induction furnace
routes of steelmaking compared to 7% for the BOF route.

Figure 1.4: 8

in FY 2023-24, as shown in Figure 1.4. There was a dip in the steel consumption during the pandemic in FY
2020-21. However, following a V-shaped recovery, steel consumption has picked up pace in the economy.

Introduction | 27
GREENING THE STEEL SECTOR IN INDIA

1.1.4. Sectoral share of steel demand in India

In India, the bulk of the steel demand comes from growth-driving sectors such as construction (43%),
infrastructure (25%), automobile (9%), white goods like engineering and packaging (22%), and defence
(1%), as shown in Figure 1.5. While the per capita steel consumption in India increased to 97.7 kg in FY
2023-24 from 86.7 kg in FY 2022-23, the global average per capita consumption was 223.7 kg in 2022.
Further, the rural per capita consumption in India is only 23 kg, which is far less than the national average.
Consequently, as India’s economy continues to grow, the demand for steel is also expected to increase

change in the future. About 90-100 % of the consumption in building and construction, engineering
& packaging and automotive sector is by the private sector, and 90-100 % of the consumption in
Infrastructure and defence is through government procurement.
Steel end-use demand segments
Building & construction Infrastructure Engineering & Packaging Automotive Defence

Share in steel demand 43% 25% 22% 9% 1%

Figure 1.5:

1.1.5. Major feedstocks for iron and steel production

Table 1.1 summarises different feedstocks used in iron and steel production in India. Iron ore and scrap
provide the iron source to the iron making industries, while coking coal, thermal coal and natural gas act
as the primary energy sources as well as provide the reducing functionality essential for converting iron
ore to iron.
Table 1.1:

Sr. No. Resource consumption (units) Consumption in FY 24

Iron Sources

1 Iron ore (MT) 225

2 Scrap (MT) 33.36

Energy Sources

3 Coking coal (MT) 72

4 Non-coking coal (MT) 72

5 Natural gas (million standard cubic meters) (MMSCM) 1177

Iron ore is the basic raw material for ironmaking. Hematite and magnetite are the most prominent types of
iron ores found in India. The total reserves of iron ore (hematite) in the country, as of 2020, are estimated at
24,058 MT9, while magnetite reserves are estimated at 11,228 MT10. Given that each tonne of steel production

The steel sector also consumes ore in the form of pellets, which are produced from high grade or

of the processes, therefore it is highly desirable. Out of the total pellet production capacity of 145.09

28 | Introduction
GREENING THE STEEL SECTOR IN INDIA

million tonnes per annum (MTPA), as seen in Figure 1.6 below, India’s pellet production stood at 96.52 MT,
i.e., 66.5% of the total capacity for FY 2023-24. India exported 12.24 MT of pellets, and the balance of 84.28
MT was used domestically in DRI making, blast furnaces and other processes.
100

90 12.24

80
6.43
11.39
70

12.62 14.46
60
9.36
50

84.28
40
72.98
67.05
30
52.26 55.4 55.25
20

10

0
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Year
Consumption Export

Figure 1.6:

In India, there is a limited availability of scrap. Figure 1.7 shows that the total scrap availability in India

scrap recycling policy, 201912 and the vehicle scrappage policy, 202113, have marginally increased domestic

steel industry.
40

35

30
8.69
4.85
25 9.91
4.74 6.56 6.57
5.57
20

15

23.96 24.67
10 19.82 19.02 19.65 19.16 20.39

0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Domestic scrap Imported scrap

Figure 1.7:

For energy sources, the steel sector in India is dominated by coal-based capacities. As summarised in
Table 1.1, the consumption of coking coal in FY 2022-23 was 56 MT, primarily for blast furnaces. In addition,
the steel sector also consumes a sizable amount of non-coking coal at 16.11 MT (both for hot metal and
sponge iron production). Similarly, the gas-based DRI plants in India use a mix of natural gas and other

also being used for producing DRI. It is estimated that the steel sector in India consumes approximately
1 billion cubic meters (BCM) of natural gas in FY 2023-24.

Introduction | 29
GREENING THE STEEL SECTOR IN INDIA

1.1.6. Route-wise share of iron and steel production

The steelmaking processes in India mainly comprise three distinct routes. They are the BF-BOF pathway,
gas-based DRI - EAF pathway, and coal-based DRI - IF pathway. Figure 1.8 illustrates the share of various
production pathways in the production of iron and steel in FY 2023-24. The blast furnace is the most
dominant route for ironmaking in India, followed by coal and gas-based DRI. The BF-BOF route is most
dominant in crude steel production.
Iron production (MT) by route Metallic input (MT) for steel production Crude steel production (MT) by route
(FY2023-24) by route (FY2023-24) (FY2023-24)

30.1, 21%
41.8, 30%
51.1, 35% 61.61, 43%
Total 71.8, 50% Total
Total
138.6 MT 144.3 MT 144.3 MT
87.0, 63% 33.4, 23%
9.8, 7%

8.8, 6% 31.6, 22%

BF Gas DRI Coal DRI BF Gas DRI Coal DRI Scrap BOF EAF IF

Figure 1.8:

The steel industry in India is very heterogeneous, with a mix of different technologies and feedstock distributed
across both iron and steel making. This heterogeneity is clearly evident in the Sankey diagram depicted in

2023-24

Figure 1.9:

As seen from the above diagram and Table 1.2, BOF units use a smaller share of the total scrap consumed
in the country. The majority of the scrap is consumed in standalone IF units with an overall charge mix
of 41% scrap and 59% DRI. It is estimated that about 90% of the total output from coal-based DRI plants,
along with 68% of the total scrap, is used by the IFs. Thus, the coal-DRI sector primarily caters to IFs. EAFs,
on the other hand, are mainly catered to by hot metal from BFs and all the available gas DRI, as EAFs in
India are predominantly owned by ISPs that have co-located gas-based DRI units and blast furnaces for
producing hot metal.

30 | Introduction
GREENING THE STEEL SECTOR IN INDIA

Table 1.2(a): Distribution of feed iron sources in crude steel production route

Feed Iron Source

Crude Steel Production
BF- Hot metal Coal DRI Gas DRI Scrap

BOF 78% 0% 0% 19%

IF 0% 90% 0% 68%

EAF 22% 10% 100% 13%

Total 100% 100% 100% 100%

Table 1.2(b): Distribution of feed iron source across crude steel production routes

Feed Iron Source

Crude Steel Production
BF- Hot metal Coal DRI Gas DRI Scrap

BOF 91% 0% 0% 9%

IF 0% 59% 0% 41%

EAF 49% 28% 11% 13%

Total 100% 100% 100% 100%

Table 1.3 provides an overview of the iron and steel units in India. The bulk of the iron production of
approximately 94 MT, in the country is through the 55 blast furnace units, while 339 DRI units produce
about 41.8 MT of sponge iron. There are about 20 BOF units integrated with blast furnaces. However, there
are over 1032 IF plants spread across the country that are preferred over EAFs due to their modular size
and low capital requirements. Further, a majority of crude steel is converted to long products in a large
number of re-rolling mills that produce long products from the crude steel obtained from IF and EAF
units. Flat products are obtained from hot strip mills mostly housed within ISPs. Nationwide, there are
1091 steelmaking units with a production capacity of 179.5 MT and producing 144 MT of steel.

Table 1.3:

Sr. No. of Capacity Actual production for FY

End product Type of Industry
No. Units (MT) 2024 (MT)

1 Blast Furnace- Hot metal 87.04

55 95.8
2 Blast Furnace- Pig Iron 7.36

Iron DRI/Sponge Iron

3 339 48.2 41.8
Producers - Coal based

DRI/Sponge Iron
4 5 12.3 9.8
Producers - Gas based

Total 399 156.3 138.6

Introduction | 31
GREENING THE STEEL SECTOR IN INDIA

Sr. No. of Capacity Actual production for FY

End product Type of Industry
No. Units (MT) 2024 (MT)

Electric Arc Furnace

5 39 39.5 31.61
(Large and Small)
Crude Steel
6 Induction Furnace 1032 68.8 51.08

7 Basic oxygen Furnace 20 71.2 61.61

Total 1091 179.5 144.3

Hot Re-rolling Mills

8 1,224 109.4 80.9
(long products)

Finished steel Hot Strips Mills

9 24 61.4 57.9
products (Flat products)

10 Cold Rolling Mills 77 32.6 21.7

11 Wire Drawing Units 65 2.7 1.7

Total 1390 206 162

1.1.7. Integrated Steel Plants and Secondary Steel Industries

The steel plants in India can be categorised as integrated steel plants

(ISPs) and secondary steel industries (SSIs). Figure 1.10 shows the ratio
of ISPs to SSIs in India’s total steel production capacity, with ISPs having
approximately 56% share and SSIs 44%. ISPs have all facilities housed

fuels. ISPs are typically larger in size and employ many people across
the value chain.
Table 1.4 depicts the distribution of capacities along various ISPs,
the largest one being JSW Steel. The public sector’s share of steel
production capacity stands at 30.93 MT {Steel Authority of India Limited
(SAIL), Rashtriya Ispat Nigam Limited (RINL) and National Mineral
Figure 1.10: Distribution of capacity
Development Corporation (NMDC)} (approximately 31%), while the
private sector accounts for 68.78 MT, which is 69% of the total capacity.
Table 1.4:

Sr. No. Integrated Steel Plants Capacity FY 23 (MT) State

Karnataka/ Chhattisgarh/
1 JSW Steel Ltd 28.08
Maharashtra/ Odisha/Tamil Nadu

2 Tata Steel 21.50 Jharkhand/ Odisha

Karnataka/ Chhattisgarh/ Jharkhand/

3 SAIL 20.63
Odisha/ Tamil Nadu/ West Bengal

4 AM/NS 09.60 Gujarat

5 JSPL 09.60 Chhattisgarh/ Odisha

32 | Introduction
GREENING THE STEEL SECTOR IN INDIA

Sr. No. Integrated Steel Plants Capacity FY 23 (MT) State

6 RINL 07.30 Andhra Pradesh

7 NMDC Steel 03.00 Chhattisgarh

Total 99.71

SSIs comprise smaller units that contribute to the remaining iron and steel production in India. The coal-based

preference for DRI in India can be attributed to the low capital required for setting up small-scale plants

reserves and the inadequate availability of domestic natural gas and coking coal also contribute to India’s

India is the largest global producer of coal-based DRI, with approximately 80% of DRI production
relying on coal, while the remaining 20% employs a gas-based process. The DRI industry consists of
both standalone and composite units. Standalone units produce only DRI, while composite units are

and large players are roughly the same.

Table 1.5: Structure of the DRI industry in India

Sr. No. No. of Units/Location Capacity (MT/year)

1 Total operational DRI Plants 344 60.5

Fuel-wise production capacity

2 Coal-based DRI Plants 339 48.2

3 Gas-based DRI Plants 5 12.3

a) AMNS (NG) Hazira 6.8

Angul 1.8

c) JSW (NG) Dolvi 1.6

d) JSW (NG) Vijayanagar 1.2

e) JSW (NG) Salav 0.9

Capacity-wise distribution

4 67 2.19

5 205 16.93

6 Large (> 0.15 MTPA) 72 41.40

Distribution based on the nature of the operation

7 Standalone 209 33.56

8 Composite 135 26.95

Introduction | 33
GREENING THE STEEL SECTOR IN INDIA

1.1.8. Regional Overview of the Indian Steel Industry

Figure 1.11 shows the locations of iron and steel units in India across various production pathways. The
size of the bubble is proportional to the steelmaking capacity. It can be seen that the primary ironmaking
units (BF and DRI plants) are located in the eastern states of Odisha, Jharkhand and Chhattisgarh.
Consequently, these three states constitute 43% of the total steel produced in India. The state of

steel in India. Maharashtra and Gujarat also have some capacity of steel plants in the coastal areas.

IFs for steel production, while larger players rely on EAFs and BOFs. IF units are either co-located with
DRI plants or run as standalone operations. While DRI plants are mainly located in the southern and
eastern parts of the country due to proximity to iron ore and coal, IF units exist as clusters spread across
the country and are located in areas that have good scrap availability. There are a total of 1032 IF units
spread across the country, with a capacity to produce 68.8 MT of steel as of FY 2023-24, with an average
production of 0.05 MTPA. IFs located in primary ironmaking clusters of Odisha, Jharkhand, Chhattisgarh
and Karnataka use DRI as a key ingredient of the charge mix, whereas those located outside primarily
rely on steel scrap for producing steel.

Figure 1.11: Iron and steelmaking units in India.

Figure 1.12 shows the state-wise production capacity of iron. Given the proximity of supply chains to
raw materials, iron production is the highest in the state of Odisha, which constitutes 24% of the total
production, while Chhattisgarh and Jharkhand constitute 16% and 15%, respectively. Primary ironmaking
in India is concentrated in only twelve states.

34 | Introduction
GREENING THE STEEL SECTOR IN INDIA

Iron production (MTPA)

0 5 10 15 20 25 30 35 40

Odisha 35.61

Chhattisgarh 22.93

Jharkhand 22.72

Karnataka 17.54

West Bengal 13.17

Gujarat 12.55

Maharashtra 12.45

Andhra Pradesh 6.82

Tamil Nadu 1.64

Uttar Pradesh 1.00

Telangana 0.69

Goa 0.23

Madhya Pradesh 0.21

Sponge iron Hot metal

Figure 1.12:

Figure 1.13 shows the state- Steel making capacity (MTPA)

0 5 10 15 20 25 30 35 40
wise production capacity
Odisha 29.1
of crude steel. Crude steel
Chhattisgarh 26.4
is produced in regions Jharkhand 21.8
different from the primary Maharashtra 19.2
Gujarat 15.3
iron production plants. West Bengal 14.8
Therefore, while there are Karnataka 14.8
Andhra Pradesh 9.8
only 12 iron-producing
Punjab 7.4
states in India, there are Tamil Nadu 4.3
28 steel-producing states. Uttar Pradesh 2.5
Himachal Pradesh 2.5
Odisha, Chhattisgarh and Telangana 2.5
Jharkhand are the largest Uttarakhand 1.8
Madhya Pradesh 1.4
iron and steel-producing
Rajasthan 1.3
states in India. Although Haryana 1.1
Maharashtra has limited Bihar 0.8
Goa 0.6
ironmaking capacity, it is Kerala 0.5
the fourth largest steel Puducherry 0.5
producing state due to Dnhdd 0.4
Assam 0.2
access to scrap. Gujarat Meghalaya 0.2
has the largest gas-based Jammu And Kashmir 0.2
Arunachal Pradesh 0.1
capacity deployment Tripura 0.1
in the country. Punjab Delhi 0.0
and Tamil Nadu have a
BOF capacity EAF Capacity IF Capacity

of IF capacity due to the

availability of scrap. Figure 1.13:

Introduction | 35
GREENING THE STEEL SECTOR IN INDIA

1.2. Overview of the global steel industry

The global crude steel industry is
dominated by a handful of countries,
with China leading the way at 54%
of total production. India follows,
contributing 7.4%, as shown in Figure
1.14. The European Union (EU) block of
27 countries collectively accounts for
136.3 MT, which is 7.2 % of the crude
steel production19.

A similar trend is observed with regard

to hot metal production, with China
producing 864 MT, followed by 80
MT in India. Japan, Russia and South
Korea cumulatively produced 158 MT,
while the rest of the world, produced Figure 1.14: 20

200 MT of hot metal. In addition, India and Iran also produced 42.3 MT and 32.9 MT of DRI, respectively.
This is depicted in Figure 1.15

Figure 1.15:

Table 1.6 shows the share of crude steel across different routes. In nearly all countries under
consideration, except India and the United States, the oxygen route dominates, with China topping the
list at approximately 91%, Japan at 73%, and Russia at 65%. In contrast, in India, 54.2% of crude steel
production is through the electric route, and in the United States, this share is even higher at 69%, with
the remaining coming from the oxygen route in both countries. However, for the rest of the world, the
major share of crude steel production is through the oxygen route at 72%.

Table 1.6: 22

Sr. No. Country Million tonnes Oxygen % Electric % Other %

1 China 1019.10 90.1% 9.9% -

2 India 140.80 43.6% 56.4% -

3 Japan 87.00 73.8% 26.2% -

36 | Introduction
GREENING THE STEEL SECTOR IN INDIA

Sr. No. Country Million tonnes Oxygen % Electric % Other %

4 United States 81.40 31.7% 68.3% -

5 Russia 76.00 65.1% 32.0% 2.90%

6 Rest of the world 487.90 71.5% 28.2% 0.4%

Note:

Figure 1.16 shows a plot of the share of iron, steel and metallic inputs across various production pathways
in 2022 across the world. It is evident that the BF route is the most dominant route for ironmaking
globally. The split between coal and gas-based DRI is not available. Therefore, DRI is covered under one
broad category. Similarly, the BOF route is the most dominant route for steelmaking. The share of scrap

Figure 1.16: 23

Figure 1.17 shows the share of scrap in the total steel production across select countries. EU, United States

developing countries like India and China have lower scrap availability, and hence, the share of scrap-

from steelmaking will be higher in developing countries like India, as scrap-based steel production has

Figure 1.17:

Introduction | 37