AM/NS India targets 20% reduction in steelmaking emissions intensity by CY'30

• Goal to achieve 1.8 tCO2/tcs by CY'30 from 2.23 tCO2/tcs currently
  
  
• Renewable energy, scrap, hydrogen to be key transition levers
  
  
• Domestic carbon market, circular economy, H2 adoption need sustained policy push
  
  

Integrated steel producer, AM/NS India, targets to reduce carbon emissions intensity in its operations by 20% by 2030, as per a recent climate action report published by the company and accessed by BigMint.

The steelmaker aims to slash CO2 intensity of its steelmaking operations from 2.23 tCO2/tcs (tonne of carbon dioxide per tonne of crude steel) in 2021 to 1.8 tCO2/tcs by the end of this decade.

A decarbonisation document was forthcoming, as AM/NS India is seeking to achieve steelmaking capacity of 8.5 million tonnes (mnt) by end-2024 by debottlenecking existing capacities, and is aiming to scale to 15 mnt in the near term. The existing gas-based DRI-EAF processes constitute about 2/3rd of total production.

3 key interim pathways

Operational efficiency: Using best available BF-BOF processes and technologies, including the use of higher-grade iron ore and coking coal; scaling successful tests undertaken to inject gases, which are cleaner than coal; integrating new equipment with advanced digitalisation technologies to ensure maximum fuel and material efficiency; fitting blast furnaces so that they are ready for adopting new technologies (significant in terms of the company's upcoming steelmaking capacity).

Clean electricity: 975 MW hybrid renewable energy project in Andhra Pradesh; 661 MW (925 MWp) solar power capacity and 314 MW wind power capacity to be integrated with a pumped hydro storage facility owned by Greenko; aiming to deliver 100% grid electrical energy requirements through renewables by 2030.

Enhanced scrap use: Establishing a brand new scrapyard and processing unit in one of the company's major plants; setting up new industrial scrap processing centres in the vicinity of scrap generation and automotive clusters; increasing sourcing of available household scrap while embedding capacity at scale

Company focus areas

• Learning from innovative activities of parent companies such as ArcelorMittal's Hamburg DRI facility with 100% hydrogen as the reductant or Nippon Steel's effort to explore the opportunity of injecting hydrogen to substitute coal in blast furnaces.
  
  
• Experiment with hydrogen utilisation in the company's production processes, especially in the realm of transition from NG to H2-based DRI production
  
  
• Long-term strategic collaborations in the domain of renewable energy with the world's leading companies
  
  
• Developing prototype CCUS activity across ArcelorMittal and Nippon Steel, which are already demonstrating the pathways to decarbonise the BF-BOF route by using the 'Smart Carbon' route, participating in Japan's COURSE50 programme, implementing CCUS, and engaging with academia on geological carbon sequestration potential in India
  
  

Policy push for green steel

AM/NS India has outlined a few areas where the government can execute more effective policies in the days to come:

• The government's clear commitment to increase procurement of low-carbon steel over time will allow producers to plan for the future
  
  
• Carbon market to promote decarbonisation investments will act as a critical enabler
  
  
• Sustained policy focus on renewable powered national energy grid and hydrogen economy
  
  
• Incentives for CCUS infra development
  
  
• Tax incentives and FDI
  
  
• Pushing for higher domestic scrap generation through ship-breaking activities, incentivising foreign investments in ship-breaking, positive auto scrappage policy and tax structure, etc.