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Long-term decarbonization strategies for the Indian steel sector with hydrogen as one option
Globally, the iron and steel sector is currently responsible for about 8% of final energy demand and 7% of energy sector CO2 emissions (including process emissions). The steel sector is one of the most challenging sectors to decarbonise and has recently received special attention owing to the potential use of low-carbon hydrogen (green and blue) to reduce its fuel combustion and process-related carbon emissions.
India is world’s second largest steel producer, with crude steel production capacity of 142.7 million tonne (mt) in 2020. According to the India’s third Biennial Update report, iron and steel industry is fifth largest GHG emitter, contributed 134.73 million tonnes of CO2 in 2016, accounting for 4.75% of the total emissions (without LULUCF). With the growing demand for steel, emissions are expected to increase in future.
IRADe is carrying out a study on “Long-term decarbonization strategies for the Indian steel sector with hydrogen as one option”. In developing a long-term decarbonisation pathway, one needs to consider all possible upcoming abatement technologies with hydrogen as one option as decarbonisation also needs to be achieved in most cost efficient manner to supply least cost steel to fuel country’s economic growth. Even partial decarbonisation technologies also need to be considered which may offer low cost emissions reduction in the short and medium term.
Key objective of the project is:
- Developing long-term least cost decarbonisation strategies for the Indian steel industry, a hard to abate sector, using hydrogen as one option
Specific tasks involve: Assessment of
- Hydrogen demand potential (2020-2060);
- Hydrogen supply infrastructure requirement (e.g centralised production vs. onsite production);
- Cost of hydrogen supply and steel production using hydrogen and non-hydrogen based steel making zero-carbon/less carbon technologies;
- Least cost decarbonisation strategies for the steel suppply in India, technology roadmap and costs of decarbonisation;
- Investment needed for transition (hydrogen and steel infrastructure);
- Identifications of barriers, formulating policies and institutional framework promoting hydrogen for decarbonised steel making.
Time frame of the analysis is 2018-2070.
Methodology: IRADe’s macro-economic model projects the steel demand of the country consistent with country’s economic growth and other macro-economic parameters. Project will apply MESSAGE software (based on dynamic least cost Linear Programming framework) from the International Atomic Energy Agency (IAEA) to analyse the supply side to develop least cost decarbonisation pathways for the Indian steel industry. During the implementation of the project, important relevant stakeholders will be consulted to make the study outcomes relevant and useful for the policy and decision making.
Principal Investigator: Dr Anjana Das firstname.lastname@example.org
Project Partner: Federation of Indian Chambers of Commerce & Industry (FICCI)
Supported By: Department of Science & Technology (DST), Ministry of Science and Technology, Government of India