The capital cost of setting up new steel plants and shutting down old ones will be a major obstacle to the shift towards low-carbon steelmaking, even as the prices of renewable electricity and gasoline. green hydrogen are dropping rapidly, said Sajjan Jindal, president and CEO of JSW Group.
Jindal noted, however, that the The steel industry has a crucial role to play in India’s commitment to Net-Zero by 2070.
Addressing the e-Conclave on Minerals, Mines and Metals organized by the Bengal Chamber of Commerce and Industry (BCC & I), he said, the the steel industry accounts for 0.7 percent of global economic output, industry also contributes 7 percent of global emissions.
“This has to change and has to change quickly,” Jindal said.
But for the transition, Jindal also called for initiatives at the “political level”. “Reducing carbon emissions will require major upgrades in steel plants and the initiative will need to be taken at the industry level as well as at the political level,” he said.
Jindal said that with the deployment of the best available technologies, low-carbon steelmaking will become competitive with conventional methods.
“Although the transition period may involve high initial investment costs, as well as operating costs, proactive government support through a well-designed policy will ensure that the industry is not discouraged from doing so. this transition, ”he said.
“Viable green steel production could be over a decade away, even as many of the world’s leading steelmakers, including us at JSW, are actively developing plans to embrace the process to meet carbon neutrality goals. In this context, switching to clean hydrogen seems to be the most likely immediate solution to achieve net zero, ”he added.
JSW Steel, it may be mentioned, has set itself the target of reducing its specific CO2 emissions by 42% by fiscal year 2030 (compared to the 2005 baseline), aligning its target with the scenario of Sustainable Development (SDS) of the International Energy Agency (IEA).
Major steel producers, including JSW Steel, have announced expansion plans.
JSW Steel, Jindal said, was adding capacity at an “unprecedented rate.” “Our planned expansion over the next 4 years equals the capabilities we have achieved over the past two decades,” he said.
However, he said any growth would be complemented by conscious efforts to manufacture sustainably in a more cost-effective and resource-less way. “We are also working to increase our dependence on renewable energy for all our needs,” he said.
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