Ministry of Steel’s Decarbonization Drive: Focusing on Renewable Energy Adoption in India’s Steel Sector

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The Ministry of Steel in India has undertaken a steadfast commitment to decarbonize the country’s steel sector. To achieve this ambitious goal, the ministry has identified specific focus areas, spanning short, medium, and long terms.


In the short term, by the fiscal year 2030, the primary emphasis will be on reducing carbon emissions in the steel industry through measures such as promoting energy and resource efficiency and increasing the adoption of renewable energy sources.


For the medium term, spanning 2030 to 2047, the focus areas are Green Hydrogen-based steelmaking and Carbon Capture, Utilization, and Storage (CCUS). These innovative solutions are expected to play a crucial role in driving the decarbonization efforts during this phase.


Looking further into the long term, from 2047 to 2070, the ministry acknowledges the potential of disruptive alternative technological innovations to aid in achieving the ultimate transition to a net-zero carbon steel sector.

The government has already taken significant steps to promote decarbonization in the steel industry. Thirteen Task Forces have been established, comprising industry stakeholders, academia, think tanks, scientific and technological bodies, and various ministries, to collaborate and recommend effective decarbonization strategies for the steel sector.

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Additionally, policies like the Steel Scrap Recycling Policy of 2019 have been introduced to enhance the availability of domestically generated scrap, thereby reducing the reliance on coal in the steelmaking process.

The Ministry of New and Renewable Energy (MNRE) has launched the National Green Hydrogen Mission to bolster green hydrogen production and usage, with the steel sector being actively engaged as a stakeholder in this initiative.

Furthermore, schemes like the National Solar Mission and the Perform, Achieve, and Trade (PAT) scheme under the National Mission for Enhanced Energy Efficiency have been instrumental in promoting solar energy utilization and incentivizing energy consumption reduction in the steel industry.

The ministry has also fostered international collaboration, implementing Japan’s New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement in steel plants.

Continuous engagement with various stakeholders underscores the ministry’s dedication to facilitating the decarbonization journey of India’s steel sector.

Union Minister of State for Steel, Faggan Singh Kulaste, highlighted these endeavors in a written reply to a question posed in Rajya Sabha, affirming the government’s resolute commitment to steer the steel industry towards a sustainable, low-carbon future.

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