New Delhi, Apr 3 (KNN) The Steel Ministry is formulating a comprehensive green steel policy to decarbonise the steel industry and bring down greenhouse gas emissions.

The policy will define green steelmaking processes, required skills, funding support, and other key aspects, reported businessline.

Green steel refers to steel produced with low carbon emissions compared to conventional methods. It aims to lower the environmental impact of a highly polluting industry.

Official data shows India's steel sector accounts for 12 per cent of the country's greenhouse gas emissions. The emission intensity is 2.55 tonnes of CO2 per tonne of crude steel produced, higher than the global average of 1.9 tonnes.

Over a dozen task forces have been evaluating various facets of green steelmaking like defining the processes, using biomass in blast furnaces, and more.

The ministry is now synthesizing these reports into a comprehensive decarbonisation strategy. One key focus is developing India's own hydrogen-based direct reduced iron (DRI) technology.

A pilot plant involving integrated mills, secondary players and CSIR labs is being explored. Hydrogen can substitute fossil fuels in blast furnaces and DRI units, drastically reducing emissions.

The MNRE has allocated Rs 455 crore to pilot hydrogen use in steelmaking through injection in blast furnaces and DRI units.

Some Indian steel players already have plans to transition fully or partially to renewable energy by 2030-31. The government is encouraging the industry, especially primary producers, to adopt green steelmaking processes.

The comprehensive green steel policy aims to provide a clear roadmap for decarbonising one of India's most emissions-intensive sectors through clean technologies and sustainable practices.

(KNN Bureau)