Global Trends
The steel sector is leveraging hydrogen use to decarbonise steel production, expecting it to be among the first sectors to commercialise green hydrogen, to reduce carbon emissions in line with India's climate change ambitions and national commitments made in the Paris Agreement. Steel majors are working with other sectors and the H2@Scale Workgroup 3 to ensure steel clusters have renewable energy access and hydrogen value-chain links for economies of scale. Switching from thermal and natural gas to renewable hydrogen is driving decarbonisation in the steel and cement sectors. A number of hydrogen projects by steel majors as well as industry consortia are currently underway in Europe such as Clean Steel Partnership, Hydrogen Green Platform, HYBRIT project in Sweden etc.The G20 countries, producing 85% of the world’s steel, are actively pursuing low-carbon steel standards too. The 2023 G20 Standards Dialogue focused on sustainable standardisation, with G20 countries cooperating towards internationally agreed definitions, standards, and certifications for low-carbon steel. Launched in 2023, the India-Middle East-Europe Economic Corridor (IMEC) enhances Asia-Europe connectivity, stimulates economic growth, and rebalances EU-China relations. It links states with high production capacity and investment potential.
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IH2A Position
IH2A is collaborating with key ore and steel producing states, the Steel Industry, and the Ministry of Steel to articulate a decarbonisation pathway for increasing hydrogen use in steelmaking. In April 2023, the Ministry of Steel had setup 13 task forces to deliberate various aspects of green steel and create an action plan for decarbonization of the sector. IH2A has been a part of the task force on Green Hydrogen.
IH2A expects Green Steel, Metals and Mining are important to reduce carbon gradually, replacing fossil fuel use in industrial processes. In Steel Making, this could take the form of H2 as a reducing agent in DRI projects, for use in Electric Arc Furnaces (EAFs), and greater H2 injection in legacy Blast Furnaces (BFs). With EU Carbon Border Adjusted Mechanism (CBAM) kicking off into transitionary period from 2023, steel exports into EU will be significantly curtailed unless Indian plants can meet the carbon emissions targets as set under CBAM. Carbon emission measurement and standardization for Green Steel is an imperative for India, making the Steel and Metals sector a key offtake industry for Green H2.
Green Steel will be at a premium to non-green steel, and there needs to be a ready market of customers who will pay the green premium. This creates a responsibility for Green Steel procurement by end-use sectors such as a automobile OEMs and other speciality steel buyers. Without concerted actions and a willingness to pay the green premium, Steel Makers will face a high economic hurdle in embracing faster decarbonization.
Member Messages
According to the International Energy Agency (IEA's) Hydrogen Projects Database, around 2000 green hydrogen production demonstration projects have been announced worldwide.
Workgroup 4 Lead
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Green Steel and Cement - Industrial Use Case
Suggestions to Workgroup 4
Green Steel and Cement - Industrial Use Case