Now is the Time to Decarbonise Steelmaking: Essar’s Approach

Steel is considered the most crucial engineering and construction material. From construction to transportation to machinery to home appliances, steel is used everywhere and is present in many aspects of our everyday lives. However, steel manufacturing is a carbon-intensive process, and every tonne produced creates almost 1.8 tonnes of carbon dioxide. The greenhouse gas emissions from the steel sector alone contribute nearly 7% of annual global emissions. The International Energy Agency’s Net Zero Scenario calls for reducing steel sector emissions by 25% by 2030 and almost 92% by 2050.

The message is clear:

Transitioning heavy industry sectors like steel can significantly reduce carbon emissions. Many conglomerates like the Essar Group have already taken several steps and are investing in the right technologies to promote sustainability and advance decarbonisation.

As we move forward, heavy industries must start making significant strides toward full decarbonisation to stop the rise in global temperature. Currently, the steel industry is among the biggest producers of carbon dioxide. Thus, steel plants are good candidates for decarbonisation.

Government Support and Policy

Governments worldwide have tightened carbon emission requirements. The Ministry of New and Renewable Energy has announced the National Green Hydrogen Mission for green hydrogen production and usage. The steel sector will also be a stakeholder in the mission to promote the utilization of Green Hydrogen in iron and steel making.

Growing Awareness about Sustainability

 The growing threat of climate change makes everyone rethink their choices. Investors are more interested in investing their money into future technologies involving sustainable innovations.   Over the next four years, Essar Group will invest INR 30,000 crore to set up a green hydrogen plant at Jamnagar, Gujarat, focusing on clean energy as a key pillar for its growth and expansion. In the steel sector, it plans to invest US$ 4 bn in developing a Green Steel complex in Saudi Arabia, and ₹12,000 crore to build a 14MTPA pelletisation complex in Odisha, India.

How to Decarbonise Steel Plants?

1. Replacing Coke in the Furnace

Coke, a carbon-rich material, has traditionally been used to generate heat and reduce iron ore in steelmaking. However, the maximum emissions come from this process. To mitigate this emission, the companies can choose lesser polluting alternatives to coke, such as biomass-based, olefin coke, and hydrogen-based blast furnace reduction are being considered. 

2.    Using Renewable Energy Source For Furnaces

Electric arc furnaces are a promising alternative to traditional coal-based methods, significantly reducing CO2 emissions.  Instead of coal-based electricity, steelmakers can opt for green sources, including solar, tidal, and wind to reduce their environmental footprint. Another change can be making the feed carbon-neutral by reducing iron in its solid state using hydrogen.

3.    Replacing Graphite Electrodes

Graphite electrodes are used in electric arc furnaces; they act as conductors for the electric current to melt the iron. However, these electrodes have a high thermal conductivity and pollute the environment. Steel industries can replace graphite with inert metallic electrodes, which can instead be used for the melting process.