ES

CORPORATE PLANNING Issue 52

Energy Scan A Maharatna Company

A House e-Journal of Corporate Planning, NTPC Limited

INSIDE THIS ISSUE SCAN SPEAKS

G20 India Presidency..........Pg-2
Greening of Iron and Steel
Economy..........................Pg-8
We hope that you, your family, and your colleagues are doing well. We are pleased to
reconnect with you through another edi on of the Energy Scan.
India's G20 presidency has marked a significant milestone in its global leadership role. With,
India taking the presidency for the first me, it is steering discussions and ini a ves among
the world's major economies to address complex challenges. During the presidency, India is
focusing on various issues like inclusive growth, digital innova on, climate resilience, and
equitable global health access. By leveraging its presidency, India is fostering collabora ve
solu ons that not only benefit its own popula on but contribute to the broader global well-
being, reinforcing its spirit of ‘Vasudhaiva Kutumbakam’ or the ‘World is One Family’. A
significant achievement during India's presidency was the unanimous adop on of the New
Delhi Declara on at the recent G20 Summit. This declara on calls for coordinated
measures to support the global economy and swi resolu on of debt vulnerabili es faced
by low and middle-income countries. India's successful diplomacy in achieving this
consensus, despite divisions arising from issues like the Ukraine conflict, underscores the
effec veness of its presidency.

The ar cle on India's G20 Presidency highlights its key priority areas and emphasizes its
ini a ves, par cularly in the energy sector, showcasing India's commitment to shaping a
more inclusive and sustainable global future.

Iron and steel, ini ally used for limited quan es of expensive items, knives and armors,
became a vital driver of economic growth during the 18th-century Industrial Revolu on.
India's steel industry, ini ally small and private, with just three plants before 1947, now
plays a significant role in the country's GDP growth across sectors such as infrastructure,
automobiles, and manufacturing. India is currently in a transforma ve phase, with a
growing emphasis on green hydrogen as a means to achieve economic and emission
reduc on goals, making it a viable op on in conjunc on with coal and natural gas, aligning
with India's global commitments and government mandates for industries and the
manufacturing sector.

The ar cle "Greening of Iron and Steel Economy" explores the poten al for a greener
approach to iron and steel produc on by using green hydrogen. The ar cle likely delves into
the technical aspects and benefits of adop ng green hydrogen in iron and steel produc on,
emphasizing its poten al to reduce emissions, improve energy efficiency, and align with
global efforts to combat climate change.

We believe that our readers will find the ar cles useful.

The items and the views expressed herein do not purport to be the official news/views of NTPC Management. This magazine is for internal circulation only.
Anything being reproduced or quoted from this magazine will require prior approval of its Editorial Group.
Energy Scan is also available online at NTPC CC Intranet g Departments g Corporate Planning g Energy Scan
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G20 India Presidency

Shiva Prashanth Kasina

Sr. Manager
Corporate Planning
1. About G20

The G20 originated in 1999 in response to the Asian

financial crisis of 1997-98, ini ally serving as an
informal pla orm for finance ministers and central
bank governors from both developed and developing
economies. In 2008, following the global financial crisis,
the G20 expanded to include the heads of state of
member countries. The G20 Presidency rotates
annually under a troika system, involving the current,
previous, and next host countries. In 2022, India took
over the G20 Presidency from Indonesia, the preceding
member of the troika. The presidency has now been
passed to Brazil, the next troika country.

The Group of Twenty (G20) comprises 19 countries and
the European Union. The G20 members represent
around 85% of the global GDP, over 75% of the global
trade, and about two-thirds of the world popula on.
2. How the G20 works
The G20 operates through three main tracks: the
Finance Track, the Sherpa Track, and Engagement
Groups.
2.1 Finance Track: Led by finance ministers and central
bank governors, this track convenes approximately four
mes a year. It addresses fiscal and monetary policy
issues, including the global economy, infrastructure,
financial regula on, financial inclusion, interna onal
financial architecture, and interna onal taxa on. Key
working groups within this track cover topics, such as
the Framework, Interna onal Financial Architecture,
Infrastructure, Sustainable Finance, Financial Inclusion,
Finance and Health, Interna onal Taxa on, and
Financial Sector Ma ers.

In addi on to the member countries, i.e. 19 countries

and the European Union, each G20 Presidency invites
other guest countries and interna onal organiza ons
(lOs) to par cipate in the G20 mee ngs and Summit.

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2.2 Sherpa Track: Established in 2008 when the G20

became a leaders’ summit, the Sherpa Track is comprised
of representa ves of heads of state. It focuses on
socioeconomic concerns like agriculture, an -corrup on,
climate change, the digital economy, educa on,
employment, energy, environment, health, tourism,
trade, and investment. Each representa ve in this track is
referred to as a Sherpa, and there are 13 working groups
covering areas, such as Agriculture, An -corrup on,
Culture, Development, Digital Economy, Disaster Risk
Reduc on, Educa on, Employment, Energy Transi ons,
Environment and Climate Sustainability, Health, Tourism,
and Trade and Investment.

The G20 process from the Sherpa Track is coordinated by

the Sherpas of member countries, who are personal
emissaries of the Leaders. The Sherpa Track oversees
inputs from 13 Working Groups, G20 ini a ves, all of 3. G20 India Presidency:
whom meet throughout the year and develop their Issue
Notes and Outcome Documents in parallel. These India is holding the Presidency of the G20, the premier
substan ve discussions then feed consensus-based global forum for interna onal economic coopera on,
recommenda ons to the Sherpa Mee ngs. The outcome from 1 December 2022 to 30 November 2023. .
document of the Sherpa-level mee ngs eventually forms
the basis of the Leaders' Declara on, which will be
debated and signed (a er and if consensus is reached) at
the final G20 leaders’ Summit by the Leaders of all G20
member countries.

The theme of India's G20 Presidency, "Vasudhaiva

2.3 Engagement Groups: This unofficial track includes
non-government par cipants and engagement groups
that provide recommenda ons contribu ng to policy-
making. The Engagement Groups consist of Business20,
Civil20, Labour20, Parliament20, Science20, SAI20,
Startup20, Think20, Urban20, Women20, and Youth20.
Energy Scan : A House e-Journal of Corporate Planning, NTPC Limited
Kutumbakam" or "One Earth · One Family · One Future,"
finds its roots in the ancient Sanskrit text of the Maha
Upanishad. This theme fundamentally emphasizes the
inherent value of all forms of life, be it human, animal,
p l a n t , o r m i c ro o rga n i s m s , h i g h l i g h n g t h e i r
interconnectedness within the context of planet Earth
and the broader universe. Addi onally, the theme
underscores the significance of adop ng LiFE (Lifestyle
for Environment), promo ng environmentally
sustainable and responsible choices at both individual
and na onal levels. These choices are envisioned to pave
the way for worldwide transforma ve ac ons, ul mately
leading to a future characterized by a cleaner, more eco-
friendly, and healthier planet.
For India, the G20 Presidency also marks the
beginning of “Amritkaal”, the 25-year period
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beginning from the 75th anniversary of its independence
on 15 August 2022, leading up to the centenary of its
independence, towards a futuris c, prosperous, inclusive
and developed society, dis nguished by a human-centric
approach at its core.
In addi on to Interna onal Organiza ons (UN, IMF,
World Bank, WHO, WTO, ILO, FSB and OECD) and Chairs of
Regional Organiza ons (AU, AUDA-NEPAD and ASEAN),
India, as G20 Presidency, has invited Bangladesh, Egypt,
Mauri us, Netherlands, Nigeria, Oman, Singapore, Spain
and UAE as Guest countries, as well as ISA (Interna onal
Solar Alliance), CDRI (Coali on for Disaster Resilient
Infrastructure) and ADB (Asian Development Bank) as
Guest Ios.
During our ongoing G20 Presidency, over 200 mee ngs
across the country, in 13 Sherpa Track Working Groups,
08 Finance Track workstreams, 11 Engagement Groups
and 05 Ini a ves, took place. Over 1 lakh delegates have
a ended around 200 mee ngs in 60 ci es of India in the
past 1 year of India’s presidency.
India’s G20 Presidency priori es are inclusive and
grounded, with broad areas of substan ve delibera ons
comprising inclusive and resilient growth; progress on
SDGs; green development and LiFE; technological
transforma on and public digital infrastructure;
reforming mul lateral ins tu ons; women led
development; and interna onal peace and harmony. We
are also amplifying the voice and concerns of the Global
South.
3.1 Sherpa Track: Energy Transi on Working Group
Since 2009, energy has consistently been a focal point of
discussion within the G20, recognized as a crucial
component for fostering a sustainable global economy. In
2013, a specialized Energy Sustainability Working Group
was established to address various energy-related
ma ers. In 2017, the topic of energy was incorporated
into the Climate Sustainability Working Group's agenda.
In 2018, during the Argen ne Presidency, the discussion
on energy ma ers shi ed away from climate-related
issues and refocused on the concept of energy transi on
through the establishment of the Energy Transi on
Working Group. This working group engages in in-depth
conversa ons on various facets of energy, including
security, accessibility, affordability, energy efficiency,
renewable energy, as well as innova on, technology, and
financing.
The G20 Energy Transi on Working Group (ETWG),
guided by the leadership of Secretary Power, Secretary
New and Renewable Energy, and Secretary Ministry of
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Mines, represented a significant milestone in global
collabora on for sustainable energy.
Under India’s G20 Presidency, ETWG was involved
developing a detailed issue note iden fying six priority
issues including (i) Energy Transi on through Addressing
Technology Gaps (ii) Low-cost Financing for Energy
Transi on (iii) Energy Security and Diversified Supply
Chains (iv) Energy Efficiency, Industrial Low Carbon
Transi ons and Responsible Consump on, (v) Fuels for
Future (3F) and (vi) Universal Access to Clean Energy and
Just, Affordable, and Inclusive Energy Transi on Pathway
were developed.
During the 1st and 2nd Energy Transi on Mee ngs held in
Bengaluru and Gandhinagar, these priority issues were
discussed in detail amongst the representa ves from the
G20 Members. Various high-level presenta ons were
made by various invited Interna onal and Local
organiza ons. Based on the inputs from Member
countries and the interna onal organiza ons a Dra
ETWG Communique was developed, which was shared
and discussed and deliberated during the 3rd and 4th
ETWG mee ngs held in Mumbai and Goa and various
intersessional mee ngs.
During the 4th ETWG Mee ng, delibera ons for
nego a ons amongst the G20 countries lasted over 100
hours in real sessions and another 70 hours in virtual
nego a ons. Over 40 bilateral mee ngs, both in-person
and through video conferencing, fostered crucial
dialogues among key stakeholders.
This was followed by successful hos ng of Energy
Transi on Ministerial mee ng (ETMM) which boasted
impressive par cipa on from 13 G20 Ministers in-
person, with five Ministers from guest countries and
representa ves from 12 Deputy/HOD from G20 & guest
countries, 15 HOD from Interna onal Organiza ons and
virtual a endance by Ministers from Mexico, France, and
Russia.
15 extensive Global Studies were released and presented
across the ETWG mee ngs, accompanied by 17 Side
Events were held across the presidency. This all-
encompassing strategy underscores the G20's dedica on
to promo ng worldwide energy sustainability and
coopera on, char ng a course towards a more
sustainable future.
During the presidency, NTPC was instrumental in
conduc ng 3 interna onal studies and 2 interna onal
seminars and has also engaged extensively in
dissemina ng the outcomes of the summit.
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NTPC Netra, under the priority area, Addressing Technology Gaps through Collabora ons, carried out an interna onal
study on Carbon Capture, U liza on & Storage. Under the Priority Area- Low-Cost Finance for Energy Transi on,
Interna onal Studies have been steered on ‘Financing needs for new age cri cal clean energy technologies for Carbon
Capture U liza on and Storage (CCUS) and on ‘Financing needs for new age cri cal clean energy technologies for
Ba ery Energy Storage.

NTPC Ltd, hosted an interna onal seminar on ‘Carbon Capture U liza on and Storage (CCUS)’ at the First Energy
Transi ons Working Group (ETWG) mee ng under the aegis of G20 India presidency at Bengaluru. During the event,
more than 200 dignitaries, speakers, panellists and delegates of various countries par cipated in the seminar wherein
they shared their knowledge and learnings pertaining to CCUS. Addi onally, a 3D-Model of NTPC flagship project on Flue
Gas CO₂ to Methanol Synthesis was also showcased at the event.

NTPC has also partnered with Ni Aayog in conduc ng a G20 Interna onal Seminar on “The Role of Small Modular
Reactors in the Energy Transi on” at ETWG-3 mee ng held in Mumbai.

In the run-up to the 18th G20 Summit, a conference on "Green Hydrogen Pilots in India" was held in New Delhi,
on 5th September, 2023. The conference showcased various Green Hydrogen Pilots being implemented by
both public and private sector companies of India. The conference, hosted by NTPC Ltd., also presented
pioneering innova ve pilots and progress in green hydrogen technology.

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3.2 Energy Transi on Ministerial

The G20 Energy Ministers, met under India’s G20 Presidency at the Energy Transi ons Ministerial Mee ng (ETMM), on
22 July 2023, with the aim to share and collaborate in accelera ng clean, sustainable, just, affordable, and inclusive
energy transi ons, as a means of enabling secure, sustainable, equitable, shared and inclusive growth.

The Energy Transi on Ministers’ Mee ng was a culmina on of the discussions of the four Energy Transi on Working
Group Mee ngs, with an aim to iden fy and promote best prac ces, policies, and innova ve approaches that support a
just and inclusive energy transi on.

The Energy Transi ons Ministerial Mee ng has also highlighted Fuels for Future (3F) as one of the priority areas. In this
context, on the sideline of the Energy Transi ons Ministerial Mee ng, a standalone event on Consulta ons and
Recommenda ons for the Global Biofuels Alliance was organized on July 22, 23 in Goa. The Interna onal Solar Alliance
launched the Green Hydrogen Innova on Centre on the occasion.

The outcome of the Energy transi on working group and the ministerial delibera ons included consensus on 22 cri cal
paragraphs as part of the communique, while 7 paragraphs were incorporated into the Chair's Summary. Notably, G20
Ministers endorsed the High-level Voluntary Principles on Hydrogen, and four significant Presidency Documents were
acknowledged namely:

• Voluntary High-level Principles for Collabora on on Cri cal Minerals for Energy Transi ons
• Voluntary Ac on Plan on Doubling the Global Rate of Energy Efficiency Improvement by 2030
• Voluntary Ac on Plan for Promo ng Renewable Energy to Accelerate Universal Energy Access
• Voluntary Ac on Plan for Lowering the Cost of Finance for Energy Transi ons

4. G20 Summit 2023

The 18th G20 Summit of 2023 recently concluded in New Delhi, India, marking the first-ever G20 summit hosted by the
country. The Summit witnessed the par cipa on of its 20 member states, 9 invitee countries and 24 interna onal
organiza ons.

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India was successfully able to achieve consensus around The New Delhi Leaders’ Declara on early on in the G20 Summit,
besides focus on UN Sustainable Development Goals, climate ac on and green development ini a ves, mul lateral
financing, digital public infrastructure, ar ficial intelligence (AI), and interna onal taxa on, among others.

4.1 G20 New Delhi Declara on:

The New Delhi Leaders’ Declara on which is a culmina on of outcomes from various Working groups from Sherpa track
and Finance track was unanimously adopted during the G20 Leader’s Summit on 9-10 September 2023. It has many
takeaways covering a variety of pressing global challenges, including climate change, economic stability, digital economy,
public health and the implementa on of the 2030 Agenda for Sustainable Development.

All 83 paragraphs of the 2023 G20 New Delhi Leaders’ Declara on were unanimously approved, achieving a remarkable
100 percent consensus. This declara on stood out by containing no footnotes or Chair’s Summary, marking a historic
moment.

Some of the key features of the declara on on the Energy transi ons front are shared below.

Climate ac on:

The declara on stressed the urgency of mobilizing “US$5.8-5.9 trillion in the pre-2030 period for developing countries”
and “US$4 trillion per year for clean energy technologies by 2030” to a ain net-zero emissions by 2050. It called for a
substan al increase in climate funding, transi oning from billions to trillions of dollars.

Leaders at the G20 Summit did not reach a consensus on the phase-out of fossil fuels, despite a United Na ons report
categorizing this phase-out as “indispensable” for achieving net-zero emissions .

However, the G20 endorsed a goal to triple global renewable energy capacity and emphasized the necessity for
emissions to peak before 2025. Addi onally, the Declara on acknowledged that limi ng global warming to 1.5 degrees
Celsius (2.7 degrees Fahrenheit) necessitates a 43 percent reduc on in greenhouse gases by 2030 compared to 2019
levels.

The G20 New Delhi Leaders’ Declara on also featured commitments to mainstream Lifestyle for Environment (LiFE),
implement sustainable energy transi ons, provide sustainable finance, reaffirm the pursuit of Sustainable Development
Goals (SDGs), address plas c pollu on, preserve the ocean-based economy, and more.

The document also endorsed expedi ng the manufacturing and advancement of markets for hydrogen generated
through low-emission technologies, as well as its deriva ves like ammonia. This would be accomplished by crea ng
mutually accepted standards and inter-operable cer fica on systems.

The Declara on proposes ra onalising inefficient fossil fuel subsidies and supports reliable and sustainable supply chains
for energy transi ons, including cri cal minerals.

The declara on also has recognized the role of grid interconnec ons, resilient energy infrastructure and regional/cross-
border power systems integra on in enhancing energy security, fostering economic growth and facilita ng universal
energy access for all.

On the sidelines of the G20 Summit, the Global Biofuel Alliance has also been launched by the global leaders. It aims to
accelerate the global adop on of biofuels by promo ng technological progress and establishing strong standards with
the ac ve involvement of a diverse range of stakeholders. So far, 19 countries and 12 interna onal organisa ons have
joined the alliance. It is an India led ini a ve to develop an alliance of governments, interna onal organiza ons and
industry to facilitate adop on of biofuels.

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Greening of Iron and Steel Economy

Lakshmanan D
Sr. Manager
RE- Hydrogen
Introduc on

Iron and Steel was used in the early days in the form of expensive items, knives, swords and armor of small quan es.
Since from the Industrial Revolu on in 18th Century, iron and steel has become an important ingredient for economic
growth of any country. Iron and steel is used in various sectors viz. infrastructure, automobile, manufacturing,
construc on, etc. and, thus, is an important factor driving India’s GDP growth. Normally Iron and steel industry is located
where raw material, power supply and running water are easily available.

Before 1947, India had only three steel plants – the Tata Iron and Steel Company (TISCO was setup in 1907), the Indian
Iron and Steel Company (IISC was setup in 1918) and Visveswaraya Iron and Steel Ltd (Mysore VISL was setup in 1923) and
a few electric arc furnace – based plants. Till 1947 thus witnessed a small but viable steel industry in the country with a
capacity of about 1 million tonne and that too completely in the private sector.

From a negligible global presence, the Indian steel industry is now globally acknowledged for its product quality. The first
major change came during the first three Five-Year Plans when in line with the economic order of the day, the iron and
steel industry was earmarked for state control. From the mid-50s to the early 1970s, the Government of India setup large
integrated steel plants in the public sector at Bhilai, Durgapur, Rourkela and Bokaro.

Importance of Iron and Steel Industry in India

World’s Crude Steel produc on stood at 1831.5 MT during Jan-Dec 2022, down by 4.3% over CPLY. During this period,
Chinese Crude Steel produc on reached 1013 MT, a decline of 2.1% over the same period of last year. China remained the
largest Crude Steel producer in the world, accoun ng for 55% of world’s Crude Steel produc on during this period. India
had a share of around 7% in world’s Crude Steel produc on¹.

Table-1 Top Ten Crude Steel producing countries in the world in 2022.

¹. World Steel Associa on

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In FY 2022-23, India is the second largest producer of crude steel in the world and India produced 124.7 million tonnes
(MT) of crude steel with up 4.9% year-on-year and 6.283 million tonnes (MT) of pig iron with up 7.3% year-on-year².

In India, steel has an output mul plier effect of nearly 1.4x on GDP and employment mul plier factor of 6.8x. Steel sector
provides 20,00,000 jobs in the country. The contribu on of steel to India's economy is around 2%. The growth in steel
sector is expected to improve the economic growth rate of India.

GHG emission from Iron and Steel Industry

The significant sectors contribu ng to GHG emissions worldwide are energy, industrial processes, agriculture, land use,
forestry, and waste.

Graph-1 Sector wise global GHG emissions.

The total World Greenhouse Gas Emissions in 2019 is 49.8 GtCO₂e and Energy sector remains the largest contributor with
75.7% (37.7 GtCO₂e), in that Iron and Steel sector is a key sector which alone contributed 6.1% (3.04 GtCO₂e) of total
global emissions in 2019³.

Data submi ed through third Biennial Update Reports (BUR3) to UNFCCC has men oned that GHG emissions in India has
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steadily increased from 1.4 GtCO₂e in 2005 to 2.8 GtCO₂e in 2016 w.r.t growth in economy .

Graph-2 Greenhouse gas emissions by category, GtCO2e, 2016

². Annual Report 2022-23, Ministry of Steel

³. h ps://www.wri.org/data/world-greenhouse-gas-emissions-2019
⁴. India’s third Biennial Update Reports (BUR3) to UNFCCC in Feb, 2021

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The energy sector accounted for about 75% of the total GHG emissions, electricity produc on was the single largest
source of contribu ng for about 40 per cent of the na onal total GHG emissions in 2016.

The share of industrial processes and product use category in India’s GHG emissions is ~8%. As per BUR3, Indian Iron
and Steel contributed 4.75% (135 million tonne) of na onal total GHG emissions in 2016.

Iron and Steel Produc on Process

Iron is basically an intermediate product in the manufacture of steel. The primary form of steel produced is known as
crude steel, which is further sub-divided into different finished products.

There are two main routes to produce steel: iron ore-based steel produc on and scrap-based steel produc on. The
most common process for iron ore-based steel produc on in the world is the blast furnace–basic oxygen furnace
(BF–BOF) route, but there is also the less common direct reduced iron–electric arc furnace route (DRI–EAF). The most
common route for scrap-based steelmaking is the scrap-based EAF route. Two- thirds of the steel produc on in the
world uses the BF-BOF route.

Figure-1 Basic flow diagram of Iron and Steel Process

In 2022, the process route of steel manufactured in India through basic oxygen furnaces was 46% and DRI method was
54% (through EAF was 23% and IF was 31%).

In the blast furnace-basic oxygen furnace (BF-BOF) manufacturing process, iron ore is smelted with heat from burning
coal. Coal also acts as a reducing agent to turn the ore into metal. Waste heat from the processes in the coke oven and
other parts is re-used in the blast furnace for improved efficiency. Pig iron is produced from the blast furnace and then
it is converted into steel through a basic oxygen furnace. Final product is casted and rolled into coils, plates, sec ons,
and bars. This BF-BOF manufacturing process becomes harder to decarbonize steel produc on.

The major GHG emissions are carbon dioxide (99%), methane and nitrous oxide. The important steps of the in-situ
process of BF-BOF that contribute to GHG emissions are coke produc on, sinter produc on and pellet produc on.

In the electric arc furnace process, steel scrap is used as the major raw material. It is melted in an electric furnace.
Sponge iron (DRI) is also o en used as a raw material in the electric arc furnace process as a replacement for steel
scrap. It is a process in which oxygen is removed from iron ore in the solid state without mel ng. The electric arc
furnace process and the produc on of DRI generates CO₂ emission.

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Growth Projec on and Policy Interven on

Govt. of India (GoI) has framed the Na onal Steel Policy in 2005 to boost the sector. The idea was to make the sector
more efficient, produc ve and at par with global standards. In 2017, GoI has reframed the Na onal Steel Policy to
create a new vision for the sector ll 2030–31. It sets out the direc on of growth as well as climate change targets for
the sector.

As per this policy, India’s crude steel produc on capacity is expected to rise to 300 million tonnes by 2030—from 125
million tonne by 2022. The per capita use of steel in India is expected to be 160 kg by 2030, up from 77 kg in 2022 and is
one-third the global average (233 kg).

The 2017 policy also projects a GHG trajectory for the sector based on the India’s Na onally Determined Contribu on
(NDC). According to the policy, by 2030, CO₂ emissions per tonne of crude steel produced through the blast furnace-
basic oxygen furnace (BF-BOF) route is 2.2–2.4 tonne and direct reduced iron-electric arc furnace (DRI-EAF) route is
2.6–2.7 tonne.

In-order to reach the capacity and produc on increase targets set under the Na onal Steel Policy, 2017, the industries
in Indian steel sector have already set expansion plans for the upcoming decade. An approximate capacity expansion
of more than 120 million tonne per annum over the exis ng 144 million tonne per annum capacity is already being
planned (capacity addi on of medium and small-scale players is not considered)⁵.

Most of the proposed expansion through the BF-BOF route, due to which there will be increase in the share of steel
produc on and the BF-BOF route of produc on will make it even more challenging for India’s steel sector to reduce its
overall GHG emissions. The reasons behind this expansion through BF-BOF route is due to (a). large-scale produc on
capacity of BF-BOF (b). poor quality and non-availability of scrap (c). high price of natural gas and (d) high demand for
primary steel.

Future GHG emissions from India’s Iron and Steel Sector

Normally BF-BOF route is more pollu ng and much more difficult to decarbonize than the DRI-EAF route. However, for
India bulk of DRI units (82% of India’s DRI produc on) are in the small- and medium-scale sector which uses coal-based
rotary kilns. This coal-based DRI-EAF and induc on furnace technologies have higher CO₂e emissions than gas-based
DRI-EAF.

Table-2: Technology-wise produc on, emission factors and GHG emissions in 2020–21⁶

Based on the Na onal Steel Scrap Recycling Policy–2019, EAF and IF will have 35–40% produc on capacity of 300
MTPA and produc on of 255 MTPA envisaged for 2030. Currently, the EAF/IF method is used to produce 55% of the
crude steel in India and this process is highly pollu ng because of the use of coal-based rotary kilns.

⁵ IBEF and leading newspapers

⁶ CSE and Ministry of Steel

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Considering the expansion plans of major steel companies, the share of BF-BOF in total steel produc on will be at least
65% (up from the present 45%), while leaving the rest of the share to EAF and IF. The emission factors of present and
future are detailed below.

Table-3: GHG emissions in 2021 and 2030⁷

Graph-3: GHG emissions (MT) in 2021 and 2030

GHG emissions in 2021 and 2030

se 659.19
n700
n 577.57
o600
T
n
oli 500 414.37
li 381.22
m400
ni 272.7
s300
n 218.64
ios
si 200 139.51 135
116.49
m 61.2
E100 16.7 26.17
G
H 0
G
BF-BOF Gas-based DRI-EAF Coal based DRI-EAF/IF Total
GHG emissions in 2021 (MT)

GHG emissions in 2030 based on expansion and technology planned (MT)

GHG emissions in 2030 based Na onal Steel Policy 2017 (MT)

Pathways for Greening Iron and Steel Sector

As a part of Glasgow commitments, Ministry of Steel is taking all the possible efforts for decarboniza on of steel sector
through policy interven ons and enabling ecosystem. The green pathways to steel produc on have been categorized
into 5 pillars of – energy efficiency, use of renewable energy material efficiency through pellets and scrap, green
hydrogen and CCUS (Carbon Capture, U liza on and Storage).

⁷ CSE and Ministry of Steel

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There are mul ple ways in which government, industries and research academics are working together to
decarbonize this sector. Some of them are detailed below.

1. Improvement in technology development

2. Use of renewable electrical power
3. Increase in use of steel scrap.
4. Shi ing to low carbon fuel usage
5. Extrac on of carbon from the flue gas and its u liza on and storage

In the above one the promising ways to decarbonize this sector by replacing or reducing the usage of coal and natural
gas with green hydrogen.

Why Green Hydrogen?

Hydrogen plays a vital role, and it is part of a comprehensive energy por olio that can enable energy security and
resiliency and provide economic value and environmental benefits for diverse applica ons across mul ple sectors.
Hydrogen has unique proper es such as high gravimetric energy density (MJ/kg) and is a versa le energy carrier
where it can be stored and converted in mul ple forms.

Hydrogen is a key energy vector on the pathways to achieving global climate goals. In the IEA’s net-zero emissions
(NZE) by 2050 scenario, global hydrogen use expands to 200MT in 2030 and to 530MT in 2050⁸.

“Hydrogen is ge ng real’ both at na onal and Global level”.

Green hydrogen is envisaged to contribute to India’s climate ac ons in a significant way. The Honourable Prime
Minister of India announced the Na onal Hydrogen Mission and sets a target of energy independence for India before
2047. This mission aims to develop India into a global hub for manufacturing of hydrogen and fuel cell technologies
across the value chain. GoI intends to scale up annual green hydrogen produc on in India to 1MT by 2030.

In the race to decarbonisa on, due to the low cost of electricity from renewable sources, encouraging technology
readiness levels, produc on cost of hydrogen gas will reduce by around 80 percent according to IRENA and is expected
to be a low-cost hydrogen market going forward.

Green Hydrogen in Iron and Steel Process

Green Hydrogen can be used in many applica ons in the Iron and Steel industries. Some of the main areas in which
green hydrogen plays an important role are.

a. Hydrogen as an alternate injec on material

H2-BF-BOF Route: In this route Coking Coal is the primary reductant while Pulverised Coal Injec on (PCI) or
Natural Gas can be used as auxiliary reductant. Green Hydrogen to replace PCI and it can achieve emissions
reduc on of around 21% on the H2-BF-BOF route⁹.

b. Hydrogen as a reductant subs tute

H2-DRI Route: In iron-making through gas-based DRI route, green hydrogen can poten ally reduce use of fossil
fuels. To start with, Green Hydrogen can be blended with Natural Gas in ver cal sha . It can achieve emissions
reduc on of up to 95% on the -BOF route¹⁰.

⁸. IEA Net Zero Emission Report 2050

⁹.h ps://bellona.org/news/eu/2021-03-hydrogen-in-steel-produc on-what-is-happening-in-europe-part-one
¹⁰.h ps://bellona.org/news/eu/2021-05-hydrogen-in-steel-produc on-what-is-happening-in-europe-part-two

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Figure-2 Hydrogen based basic flow diagram.

This setup is intended to provide a con nuous supply of green hydrogen gas required for primary or auxiliary
reductant in the BF-BOF and reductant subs tute in DRI-EAF route. Green hydrogen can be generated by either using
renewable power from the grid or locally generated renewable power by breaking the water molecules into hydrogen
and oxygen in an electrolysis or direct concentrated solar process. Subsequently, hydrogen is intermediately stored in
pressure storage tanks up to a certain amount to ensure a constant hydrogen volume frac on in the fuel mixture for
constant combus on proper es. This is crucial, as unexpected and sudden fluctua ons in the fuel composi on is to be
cri cal on the constant heat input for the iron and steel process and consequently on steel quality. Hydrogen is
carefully controlled and supplied at required composi ons levels and flow into the system.

Economics behind the usage of Green Hydrogen

The feasibility of green hydrogen-based iron and steel making process in BF-BOF and DRI-EAF provides techno-
economic and socio-environment analysis are detailed below in different scenarios.

Case-1: Steel plant with the annual produc on capacity of 4 MT through BF-BOF route with emission factor of 2.5
emits 10 MT of CO₂ every year. By replacing the part of coal with hydrogen of small quan ty in the steel making process
with the same calorific content, the requirement of coal is reduced from 3.4 MT to 2.78 MT and requires addi onal
green hydrogen of 149 kilo tonnes. Due to this, there is a direct reduc on of around 18% of coal consump on and
emission of greenhouse gases (8.17 MT of CO₂e every year) with the addi onal saving on coal consump on cost of
around 400 Cr¹¹.

Case-2: Steel plant with the annual produc on capacity of 4 MT through DRI-EAF route with emission factor of 1.6
emits 6.4 MT of CO₂ every year. By replacing the part of natural gas with hydrogen of small quan ty in the steel making
process with the same calorific content, the requirement of natural gas is reduced from 1600 MMSCM to 1570
MMSCM and requires addi onal green hydrogen of 7300 Tonnes. Due to this, there is a direct reduc on of around 2%
of natural gas consump on and emission of greenhouse gases (6.25 MT of CO₂e every year) with the addi onal
expenditure on hydrogen usage cost of around 140 Cr (i.e., `355/tonne of steel)¹².

From the above two cases, (a). coal reduc on with green hydrogen usage process provides economic viable solu on
to decarbonise and (b). currently replacing natural gas with green hydrogen is not an economic viable solu on but an
increase in green hydrogen genera on, least renewable power cost and technological improvement would make the
process more viable. The breakeven will be achieved, if the green hydrogen cost is around `200/kg for the
replacement of natural gas with green hydrogen.

Considering the above two cases and projec ng India’s target on produc on and green house gases emission with
respect to expansion plans and Na onal Steel Policy 2017, reduc on of green house gases emissions in 2030 are
detailed below.

¹¹. h ps://coal.nic.in/en/npminated-authority/na onal-coal-index,

Coal Grades - Ministry of Coal, Government of India
¹². Ministry of Steel, Government of India
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Table-4: Reduc on in GHG emissions 2030

In 2030, the reduc on in GHG emission (MT) based on expansion plans is 114.5 MT of CO₂e and based on Na onal
steel policy is 94.3 MT of CO₂e.

Global Green Steel Projects

In global level many countries and organisa on are implemen ng the system with green hydrogen in the industrial
process for Iron and Steel sectors with minor modifica on in the system.

Some of project or references at global level are detailed below.

a. GrInHy project¹³

The GrInHy project, supported by the FCH JU, has designed the world's largest reversible solid oxide
electrolyzer to produce hydrogen for steel surface treatment.

b. Project H2FUTURE¹⁴

This project has created the world's largest low-temperature proton exchange membrane (PEM) electrolyzer,
with a capacity of 6 MW, and is producing hydrogen for direct iron-ore reduc on.

The long-term objec ve is to replace coke oven gas with green hydrogen by making it a cost-effec ve
alterna ve for the steel industry.

c. Tenaris-Snam-EDF¹⁵

The steel manufacturer Tenaris, the energy infrastructure provider Snam, and the mul na onal electric u lity
company Edison have joined forces to build a 20 MW electrolyzer at the Tenaris facility in Italy.

In addi on to producing oxygen and hydrogen, the ini a ve will modify the steelmaking process to use green
hydrogen instead of natural gas. A high-pressure hydrogen storage facility will be constructed as part of the
plan, and local oxygen will be used for smel ng. The ini a ve will reduce carbon dioxide emissions
significantly.

¹³. h ps://salcos.salzgi er-ag.com/en/grinhy-20.html

¹⁴. h2future-project.eu
¹⁵. h ps://www.tenaris.com/en/news/2021/tenaris-joins-edison-and-snam-to-trial-steelmaking-with-green-hydrogen-at-its-dalmine-mill-in-italy

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d. H2 Green Steel¹⁶

Swedish company H2 Green Steel (H2GS) aims to be one of the forerunners in producing steel and steel-
related products using green hydrogen. The company allocated an ini al budget of $3 billion for the ini al
produc on of the project.

Hydrogen will be manufactured using renewable energy sources in the Boden-Lule region of Sweden.
Produc on is set to begin in 2024. H2GS aims to produce five million tons of carbon-free high-quality steel
annually.

Some of the plant planning to use Hydrogen BF-BOF technology at global level are detailed in the table below.

Table-5: Companies planning to use green hydrogen in BF-BOF process.

Conclusion

India has entered a major transforma onal phase in its economic, climate change, social etc., and it will con nue to be
one of the fastest growing energy markets in the world. Green hydrogen offers all the benefits of coal and natural gas in
terms of economical and emission reduc on – it responds instantly when demand peaks, it is easily stored and
delivers high temperature heat for industrial needs.

With these outcomes, usage of green hydrogen gas with coal is economically viable op on and with the increase in
hydrogen genera on capacity and reduc on in renewable energy cost, will lead to reduc on in hydrogen price,
thereby usage of green hydrogen with natural gas will also become viable op on. It will help us to support the India’s
commitment at global forum and fulfils the hydrogen purchase mandates set by the government for industries,
manufacturing sector etc.,

Coal reduc on with green hydrogen usage process provides economic viable solu onto decarbonise. Currently
replacing natural gas with green hydrogen is not an economic viable solu on dueto increase in green hydrogen
genera on. The process can be made more viable through reducing renewable power costs and through technological
improvements. Breakeven can be achieved, if the green hydrogen cost is around ₹200/kg for the replacement of
natural gas with green hydrogen.

¹⁶. h ps://www.h2greensteel.com/green-steel

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Source: VisualCapitalist.com

A Maharatna Company

Patron : Sangeeta Kaushik, CGM (CP)

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