Green steel refers to producing steel without burning fossil fuels – for example using renewable electricity or low‑carbon hydrogen instead of coal. This contrasts with conventional methods (blast furnace/basic oxygen furnace) that rely on coal or coke, making steel the single largest industrial source of CO₂. Globally, steelmaking emits about 8% of all CO₂. In India, the steel sector remains carbon‑intensive: it contributed roughly 12% of national CO₂ emissions in 2023, with an emissions intensity of about 2.55 tonnes CO₂ per tonne of steel (well above the global average of 1.85). Traditional steelmaking also consumes vast resources and energy – for instance, a blast furnace uses roughly 14 MJ of energy per kg of steel and large amounts of iron ore and coal.
Recycling for Greener Steel
One practical path to green steel is recycling scrap metal. Electric arc furnaces (EAFs) can melt scrap steel using electricity instead of coal, and – when powered by renewables – can be nearly carbon‑free. Moreover, using scrap greatly reduces resource use: every tonne of steel scrap recycled saves about 1.1 tonnes of iron ore, 0.63 tonnes of coking coal and cuts energy needs by roughly 16–17%. Recycled steel also uses much less water and emits 40–58% less CO₂ than the blast‑furnace route. In practice, 100% scrap‑fed EAF steel has a carbon intensity (~0.67 tCO₂/t) far below the ~2.3 tCO₂/t typical of BF/BOF steel.
India’s policies reflect this: the 2019 Steel Scrap Recycling Policy explicitly promotes a circular economy in steel and the creation of scientific collection and processing centers for quality scrap. The government’s National Steel Policy (2017) projects that 35–40% of future capacity (about 300 Mt by 2030) will be via scrap‑based EAF/induction furnace (IF) routes. Today scrap is already used in the secondary sector (all EAF/IF mills) and even as ~15% of the input mix in primary steel BOFs. Under policy targets, India plans to raise recycled content to half of all steel feedstock by 2047.
Recycling in India’s Steel Sector
Building a circular steel economy in India involves both policy and industry action. The Ministry of Steel’s Scrap Recycling Policy and Vehicle Scrappage Regulations aim to channel end‑of‑life materials (old cars, ships, appliances) into the steel mill. For example, the Vehicle Scrapping Policy (2021) is expected to free up millions of tonnes of scrap by capturing aging vehicles for recycling. In 2024 India produced roughly 25 Mt of scrap domestically and imported about 5 Mt – with plans to ramp up collection and processing to meet rising demand. Companies are investing too: Tata Steel is building a large new EAF mill, and JSW Steel is piloting hydrogen‑DRI and EAF projects, all increasing recycled steel use. In short, India’s approach ties scrap recycling to its green‑steel ambitions. The government has set a long-term goal that, by 2047, roughly half of India’s steel output will be made from scrap (scrap 50%, iron ore 50%).
Challenges in Scrap‑Based Green Steel
Achieving high levels of recycling faces hurdles. Quality and consistency of scrap are major issues. Much of India’s scrap is collected informally and often contaminated (paint, dirt, non‑ferrous bits), which reduces furnace efficiency and product quality. There is also a shortage of organized infrastructure: India needs hundreds of modern scrap yards, shredders and collection centers to capture end‑of‑life steel. The government estimates that meeting future targets (e.g. 250 Mt steel by 2030) could require 70–80 Mt of scrap, implying on the order of 700 shredders and ~3,000 collection hubs nationwide. Currently, a supply gap exists: as of 2017 India was importing ~7 Mt to meet demand. Global market pressures add to the problem – for instance, export bans abroad and the EU’s carbon border levy may limit scrap availability or raise costs. In summary, challenges include securing clean, high-grade scrap; upgrading collection/processing; and attracting investment in recycling technology.
Future Outlook: Recycling and India’s Green Transition
Despite these challenges, recycling holds great promise for India’s green steel future. Industry experts note that scaling up scrap‑based steel can be a relatively low‑hanging fruit for cutting emissions immediately. The government is strengthening policies (scrap tax incentives, scrappage schemes, and a nascent carbon market) to make recycling more competitive. With sustained investment in infrastructure and cleaner scrap, analysts believe India could “become a global leader in recycling” thanks to its large material flows and growing sustainability awareness. In the long run, combining recycling with renewable energy and green hydrogen could reshape steelmaking. As one analyst observed, technology and infrastructure investments will be key to “unlock its full potential”. In sum, increasing scrap recovery is a crucial decarbonisation lever: it conserves resources, cuts emissions, and helps steelmakers adapt to tighter environmental norms. If India meets its targets (e.g. 50% scrap use by 2047), recycling could significantly bolster the nation’s path to a greener economy.
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