Page 21 - Steel Tech India eMagazine Volume April 2022

VOL. 16 • NO. 3 • April 2022

supported by Bee, GIZ, and International Funding carbon price to aid investments decisions thus reducing
Organization(s). There will also be need to have stranded asset risk. For the steel sector, where steel
foreign collaboration for carrying out the R&D activity is globally traded, a carbon border adjustment would
to conclude its logical conclusion and its suitability be required to limit dirtier steel being imported at lower
under the Indian conditions. As per the various teRI’s costs. this is currently being taken forward by the eU
studies, India will have initially need to go in big way under their ‘Green New Deal’.
for grey hydrogen based DRI / steel production and 7.2. currently, about 80% DRI production comes from
subsequently to green hydrogen based DRI / steel the coal based route. No green field gas based DRI /
production and have to phase out coal based DRI route hBI plant is on the drawing board for the reasons as
by 2050. this would be necessitated to reduce carbon mentioned above. As per the available information,
footprints and to fall in line with the world trend in spite around 3 – 4 million tonnes annual capacity through
of the fact that the production cost through this route the coal based route would be added in next two years.
would be initially higher than the conventional BF-BOF coal based route of DRI production is a major source
route. A carbon price is a well understood policy lever of cO emissions. Some R & D activities should be
2
to motivate a switch to cleaner fuels across a number immediately taken on a war footing to substitute part of
of sectors. Many companies already apply an internal the coal by reductant.

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