A CEEW study calculates the
cost of decarbonizing the steel and cement production plants in India. It also
finds carbon capture and storage, if successfully scaled up, could abate 56% of
emissions from the steel industry.
India is the
second-largest producer of steel and cement in the world, both of which are
emission-intensive processes. The CEEW studies are the first-of-its-kind
calculation of the cost of decarbonizing these industries. These also pointed
out these steel and cement sectors will need INR 1 lakh crore each year in
additional operational expenditure (OPEX) to go net zero.
The CEEW analyses,
funded by ‘bp’, an integrated energy company, also found that an 8–25%
reduction in steel emissions and a 32% reduction in cement emissions is
possible without any price increase by adopting efficient technologies such as
waste-heat recovery and energy efficient drives and controls.
Moreover, a 33%
reduction in the combined carbon emissions of the steel and cement industries
could be achieved with just 8.5% of the total additional CAPEX and 30% of the
additional annual OPEX. This reduction can be done without considering the need
for carbon capture and with the requisite supply of alternative fuels and raw
materials.
Arunabha
Ghosh, CEO of CEEW, said, “Decarbonising steel and cement industries will
not only help India meet its climate ambitions but also make its industries
market competitive and future-ready in a world with increasingly
sustainability-driven regulations.”
CEEW’s assessment
indicates that the Indian steel industry emitted 297 million tonnes of CO₂ in 2021-22 in crude
steel production. That translates to 2.36 tonnes of CO₂ emissions per tonne
of crude steel (2.36 tCO₂/tcs) compared to the world average of 1.89 tCO₂/tcs. The cost of
producing this steel would increase with the tightening of emission intensity
limits.