2. DSP
What is net zero?
Net zero means cutting GHG emissions to as close to zero as possible, with any
remaining emissions re-absorbed from the atmosphere, by oceans and forests .
The Target is to
Net Zero
• Reduce Emissions Intensity of its GDP by 45 percent by 2030
• Achieve about 50 % cumulative electric power installed capacity from non-fossil by 2030
(Present level – 25.44 % 2022-23)
•To create an additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent through
additional forest and tree cover by 2030
( One matured tree can absorb approx. 22 Kg of CO2 in a year)
4. DSP
GDP Intensity (t CO2/1000 $) & Growth
GDP Intensity 2005
World : 0.33
China: 0.79
USA : 0.34
EU : 0.21
India : 0.31
JAPAN : 0.24
•The world economy could more than double in size by 2050, far outstripping population growth,
due to continued technology-driven productivity improvements
•Emerging markets (E7) could grow around twice as fast as advanced economies (G7) on average
•As a result, six of the seven largest economies in the world are projected to be emerging
economies in 2050 led by China (1st), India (2nd) and Indonesia (4th)
GDP Intensity 2021
World : 0.26
China: 0.45
USA : 0.21
EU : 0.13
India : 0.25
JAPAN : 0.20
8. DSP
Sector / Industry-wise CO2 emissions
Iron & Steel
29%
Cement
27%
Chem & P
chem
14%
Aluminium
3%
Pulp &
paper
2%
other
Industry
25%
Power Coal
42%
Transport
23%
Industry
26%
Buildings
9%
Sector wise CO2 emissions Industry wise CO2 Emissions
9. DSP
What is Green Steel
Essentially, green steel is the manufacturing of steel without the use of fossil fuels.
So-called “green hydrogen” is one solution that could help reduce the steel industry’s carbon footprint.
“When burned, hydrogen emits only water. And if that hydrogen is produced via electrolysis using just
water and renewable electricity, then it is completely free of CO₂ emissions,”
11. DSP
68
57 55 58 63
47
32
43 45 42 37
53
0
20
40
60
80
100
120
Before 2021 Since 2021 Under
Construction
Announced Net Zero
Target 2030
Net Zero
Target 2050
EAF Route BF-BOF Route
Changes in Steel-making Capacity: Route wise (%)
13. DSP
Country Carbon
Commitment
BF-BOF Steel
Capacity ( MTPA)
under development
China Net Zero 2060 147
India Net Zero 2070 154
Indonesia Net Zero 2060 23.5
Vietnam Net Zero 2050 22.4
Malaysia Net Zero 2050 11.6
Mynmar Net Zero 2050 4
Cambodia Net Zero 2050 3.1
Bangldesh Net Zero 2050 2.0
Nigeria Net Zero 2060 1.3
STRANDED ASSETS IN THE STEEL
INDUSTRY
Stranded assets are assets that have lost anticipated
Economic value as the result of changes in market
conditions
and regulations adopted as part of decarbonizing the
global economy.
BF-BOF steel plants will be vulnerable to stranded
asset risk if the cost of carbon is realized through
carbon pricing (i.e., taxes) or emission
standards, and a conventional steel plant may be
unable to price competitively with low-carbon steel
production plants.
To avoid stranded asset potential, BF-BOF retrofits
for low-carbon steelmaking would need to be
developed and brought to market in a fraction of
the time predicted in steel decarbonization
roadmaps
Net Zero targets & Steel Capacity addition
20. DSP
• All three East Asian steelmakers have rolled out plants to expand their presence overseas, preparing for a more
diverse value chain in a net–zero future. Securing metallic feedstocks and clean power is a key motive in overseas
expansion. This makes the Middle East, Australia, Brazil and Canada popular destinations, with excellent renewable
resources and rich iron ore reserves.
• JFE Steel has agreed with Emirates Steel Arkan to explore producing direct–reduced iron (DRI) or hot briquetted
iron (HBI) in Abu Dhabi. Production will use the low–cost and abundant local natural gas as a reducing agent to
replace coal, and the high–grade iron ore supplied by Itochu.
• Nippon Steel recently started considering a $700 million investment in a hydrogen–based steel project, potentially
in Australia and Brazil.
• In 2022, POSCO announced plans to invest heavily in Australia, committing $28 billion to
renewable development and green hydrogen production to be used for HBI production. Another $12 billion goes
to modernizing steel equipment, bringing the total investment in the country to $40 billion by 2040.
Decarburization Strategies of Steel Producers
21. DSP
All three steelmakers have either invested in or acquired electric arc furnaces overseas, particularly in Southeast
Asia and North America.
In 2022, Nippon steel bought majority stakes of two EAF steelmakers in Thailand, acquiring a 1.5 million– metric–
ton(Mt) EAF in Chonburi at GJ Steel and a 1.8Mt EAF in Rayong at G Steel. Both produce hot– rolled steel sheets to
satisfy local markets.
Nippon Steel expanded to the US, through its flagship joint venture with ArcelorMittal.
The company, known as AM/NS Calvert, invested $775 million in a 1.5Mt plant in Alabama, and production aims to
come online in 2H 2023. In 2022, POSCO began building a 1.5Mt EAF in Mexico, with $43 million already invested.
In addition to emissions reduction, these companies are attempting to nearshore steel capacity, building it closer
to its end–use market. This is to capture growing demand from emerging markets, particularly in lower– end
construction steel. Their operations in their home markets will also become leaner as a result, making their future
not only lower carbon, but more diversified.
Decarburization Strategies of Steel Producers
25. DSP
An understandable ripple of excitement reverberated through the industry when it emerged in
October 2022 that US green steelmaker Electra had scooped $85m in backing from an
array of high-profile investors, including the likes of Amazon and Bill Gates’
Breakthrough Energy Ventures, to scale its zero-emissions technology. Electra claims its
pioneering iron ore and steelmaking process emits zero CO2 emissions while also holding the potential
to become cheaper than existing fossil-powered methods.
Electra has developed an electrochemical process to refine iron ore to high-purity iron
that lowers the process temperature from 2,912°F (1,600°C) to 140°F (60°C), replaces
burned coal with variable renewable electricity and displaces commercial ores with lower-
grade ones that are not being used today or are treated as waste. The company plans to complete
construction of its first iron ore refining pilot plant in Colorado, US, in 2023. Its broader aim is to have
a commercial-scale plant up and running before the end of the decade.
Emerging Technologies
26. DSP
Of the four competing technologies to decarbonize steel, DRI with CCS and HDRI are closer to commercial
scale than the electrolysis technologies. “The hope for 30 years was that CCS could simply be attached to
blast furnaces, but that is just not panning out. Instead, there are versions of HDRI at the finance and
planning stage across Europe, for operation somewhere between 2024 and 2030.
For example, H2 Green Steel and EIT InnoEnergy are developing a “giga-scale” green hydrogen-fuelled
steel production facility in northern Sweden. Production will begin in 2024 and, by 2030, the companies
forecast annual production capacity of five million metric tonnes of CO2-free steel. “When it comes to green
steel, the Swedes are the leaders in the space, followed by the Germans and Austrians,”
.
On the other hand, the electrolysis technologies are more modular than their competitors. “That
is a big advantage: you don’t have to have these big megatonne-level facilities as you do for HDRI or blast
furnaces,” They also require less energy to drive the process; they are about 30–40% more efficient
than HDRI.
The problem is that the electrolysis technologies require much more so-called “must-run” electricity for a
tonne of steel, particularly MOE, so they are exposed to fluctuating power prices. This is where HDRI has
the advantage. Sweden’s SSAB, for example, is building an underground cavern, where it will
store hydrogen it has created using off-peak North Sea offshore wind, to be used by SSAB’s steel
plant as and when needed.
Emerging Technologies
27. DSP
SL- 27
Specific CO2 Emission with all Enablers
Unit: tonnes of CO2 per tonne of Crude Steel
2022-23
2023-24
(APP)
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Bhilai Steel Plant 2.62 2.50 2.38 2.31 2.24 2.16 2.07 1.97
Durgapur Steel Plant*
2.48 2.44 2.36 2.23 2.18 2.14 2.07 1.98
Rourkela Steel Plant 2.43 2.41 2.30 2.24 2.20 2.13 2.07 1.98
Bokaro Steel Plant*
2.43 2.40 2.32 2.25 2.19 2.13 2.08 2.04
IISCO Steel Plant 2.45 2.375 2.18 2.10 2.05 1.99 1.97 1.94
Steel Authority of
India Limited
2.50 2.43 2.32 2.25 2.19 2.12 2.06 1.99
SAIL Decarburization Road Map
