India’s steel industry is poised for a major transformation with the integration of green hydrogen as a sustainable solution to tackle its decarbonisation challenge, according to a recent report jointly published by Deloitte and FICCI titled “India Steel 2023: Amrit Kaal Journey – Facilitating the Indian Growth Story.”
Addressing a Decarbonisation Challenge
The report highlights a critical issue: the steel sector’s emissions currently account for a substantial 12% of the total CO2 emissions in India. Shockingly, for every tonne of steel produced in the country, a staggering 2.55 tonnes of CO2 are emitted, in contrast to the global average of 1.85 tonnes.
Rising Emissions and Urgent Need
These findings come at a time when India’s steel industry is responsible for approximately 240 million tonnes of carbon emissions annually. This figure is projected to double by 2030, largely due to the Indian government’s ambitious infrastructure development targets. This alarming trend underscores the pressing need for steel producers to swiftly adopt decarbonisation strategies.
Green Hydrogen as a Game Changer
In response to this challenge, the Indian government has identified green hydrogen-based Direct Reduction Iron (DRI) as a revolutionary alternative to conventional steelmaking methods, which heavily rely on fossil fuels, particularly coal and natural gas. The incorporation of hydrogen in the steelmaking process not only enhances energy efficiency but also reduces operational costs and improves the quality of the steel produced.
Significant Emission Reduction Potential
Experts in the industry, as highlighted in the Deloitte report, assert that replacing fossil fuels with hydrogen in the DRI process can potentially slash emissions by an impressive 90%.
Government’s Vision for Green Hydrogen
To realize this potential, the Indian government has initiated the National Green Hydrogen Mission, which aims to catalyze the development of a robust hydrogen infrastructure. This mission aligns with the global shift towards sustainable energy sources and signifies a significant step forward in addressing India’s industrial emissions and advancing the country’s sustainable growth story.
