• Access to renewables, solid manufacturing base region's key strengths
• India first country in the world to launch green steel taxonomy

Green steel technology refers to methods of producing steel with significantly lower carbon emissions, often using renewable energy sources, hydrogen-based direct reduction, and circular practices like recycling.

South India, with its growing industrial base and proximity to ports, is emerging as a key region for green steel production.

The following factors make south India ideally suited to emerge as a green steel hub in India:

• Technological preparedness (EAF and renewables integration).
• Strategic placement (renewables, ports)
• Government and industry support (e.g., PLI schemes, MoU's with multinational corporations)

Core technologies

• Electric arc furnace (EAF): Utilises electricity, preferably from renewable sources, to melt scrap steel, significantly reducing CO2 emissions compared to traditional blast furnaces.
• Hydrogen-based direct reduced iron (H-DRI): Employs green hydrogen instead of coal to reduce iron ore, producing water vapour instead of CO2, thereby achieving near-zero emissions.
• Carbon capture and storage (CCS): Captures CO2 emissions from steel production processes and stores them permanently, preventing their release into the atmosphere.
• Recycling and circular economy: Focuses on using scrap steel to reduce the need for virgin materials, promoting a circular economy and minimizing environmental impact.

Emission standards & taxonomy

Steel with emissions of 2.2 to 2 tonnes CO2 per tonne per tonne of finished steel is classified as 3-star rated steel, while 4-star-rated steel has emissions intensity of 2 to 1.6 tonnes CO2 per tonne of finished steel.

Steel with emissions below 1.6 tonnes CO2 per tonne qualifies as five-star-rated steel. The star ratings show the percentage of greenness of steel.

India's Ministry of Steel has introduced a comprehensive framework to classify and promote 'green steel' as part of its efforts to decarbonize the steel sector and align with the nation's net-zero emissions target by 2070

Indias Green Steel Classification System

The Ministry has established a star-rating system based on the carbon dioxide equivalent (CO2e) emissions per tonne of finished steel produced:

Supportive Policies and Trends

National Green Hydrogen Mission

The Ministry of New and Renewable Energy (MNRE) has allocated 455 crore until FY 2029-30 to promote green hydrogen production.

Pilot projects for Direct Reduced Iron (DRI) production using 100% hydrogen are underway, demonstrating India's commitment to green innovation in steel production

Production-Linked Incentive (PLI) Scheme for Specialty Steel

The government introduced the PLI scheme to reduce India's dependence on specialty steel imports.

Steel Scrap Recycling Policy

The Steel Scrap Recycling Policy, 2019, enhances the availability of domestically generated scrap to reduce the consumption of coal in steelmaking.

Industry Trends

1. Shift Towards Hydrogen-Based Steelmaking

The adoption of Hydrogen-based Direct Reduced Iron-Electric Arc Furnace (H2-DRI-EAF) methods is gaining traction as an environmentally friendly alternative to traditional Blast Furnace-Basic Oxygen Furnace (BF-BOF) methods.

2. Increased Use of Scrap in Steel Production

The government aims to increase the share of scrap in steelmaking to 50% by 2047.

Using scrap reduces emissions by 25% compared to primary steelmaking routes.

3. Green Public Procurement (GPP)

The government is considering mandating the procurement of 37% of green steel in publicly funded infrastructure projects.

This initiative aims to create demand for green steel and accelerate its adoption in the market.

Global Pressures and Opportunities

India's steel industry faces challenges from global carbon border taxes, such as the EU's Carbon Border Adjustment Mechanism (CBAM), which could impact exports.

In response, India is accelerating its green initiatives, driven by renewable energy targets and subsidies for green hydrogen production

C-BAM

CBAM stands for Carbon Border Adjustment Mechanisma climate policy tool developed by the European Union (EU) to prevent carbon leakage and encourage cleaner production globally.

CBAM is essentially a carbon tariff applied on imports of carbon-intensive goods (like steel, cement, aluminum, etc.) into the EU. It ensures that imported products face the same carbon cost as goods produced within the EU, which are subject to strict climate regulations under the EU Emissions Trading System (ETS).

Why It Matters (Especially for India)?

• The EU is Indias second-largest steel export market.
• Under CBAM, Indian exporters will need to report and eventually pay for the carbon emissions embedded in their steel and other products.

If Indian steel is produced with coal-based methods, it will attract higher carbon costs, making it less competitive in the EU market.

Outlook

The outlook for green steel in India is cautiously optimistic, backed by strong policy support, global demand pressures, and emerging technologies.

Join us at FUTURE.STEEL SOUTH, taking place on 18-19 June 2025 at Taj Coromandel, Chennai the Southern hub of India's accelerating steel ecosystem. With South India contributing ~27 million tonnes of steel output, this region is fast emerging as a strategic pillar of India's steel growth story.

BigMint proudly brings its flagship steel conference to Chennai, featuring 30+ expert speakers across 7+ insightful sessions. This edition will offer an in-depth exploration of key themes including Pricing, Policy, Trade, and Technology, alongside crucial discussions on Green Steel, Scrap, Sustainability, Outlook, Indexing, and Capacity Expansion.

Attendees can look forward to unmatched opportunities in Sponsorships, Exhibition Stalls, and over 10 hours of high-impact networking with leading steel producers, buyers, traders, technology providers, miners, end users, and policymakers. An exclusive Steel Plant Tour is also scheduled for 19 June, offering firsthand industry insights.

Don't miss South India's most strategic steel dialogue secure your spot now: https://tinyurl.com/33985dkn