India Embarks on Ambitious Green Steel Consortium to Develop Indigenous Technology

India has launched initiatives to form a consortium with stakeholders to develop indigenous technology for green steel. The government is negotiating with international providers to reduce costs and has floated tenders to support green steel-making projects. The goal is to decrease carbon intensity in steel production significantly.

India's effort to create a consortium aimed at developing indigenous technology for green steel has officially begun, according to a senior official.

The government has urged international technology provider Danieli to reduce the cost of the clean energy-based Direct Reduced Iron (DRI) plant, making it more affordable for steel companies during this transition period.

Steel Secretary Nagendra Nath Sinha announced that labs, IITs, steelmakers, and equipment manufacturers have initiated steps to form a consortium focused on indigenous green technology for steelmaking.

In June, the Steel Ministry floated tenders worth Rs 455 crore under the National Green Hydrogen Mission, seeking industry participation to pilot green steel-making projects with partial financial support.

A consortium led by the Institute of Minerals and Materials Technology (IMMT) has expressed interest in piloting India's first green steel-making initiative using a 100 per cent hydrogen-based DRI production method.

The government has requested technology provider Danieli to reduce the cost of the hydrogen-based DRI plant from Rs 800 crore to Rs 400 crore to make it affordable for steel companies. A decarbonization roadmap is also in preparation to reduce the steel sector's significant carbon footprint, emphasizing increased hydrogen use and carbon capture technologies.

Energiron direct reduction technology, developed by Tenova and Danieli, promises energy efficiency, product quality, and environmental compliance using hydrogen. Other countries like China and Sweden are also moving towards 100 per cent fossil fuel-free DRI production.

In the short term, India aims to reduce carbon intensity in steel production by about 20 per cent from the current 2.5 tonnes of carbon per tonne of steel.

(With inputs from agencies.)