# India Can Decarbonize Steel Production Before Locking In Coal Infrastructure Strategic investment shifts toward electric arc furnaces could prevent decades of high-carbon steel emissions. - **Source:** [Science News | Latest Updates on Scientific Discoveries | The Hindu](https://www.thehindu.com/sci-tech/science/) - **Published:** 2026-10-16 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/e6d8aef7-1cfb-433f-8fbe-94d7f5ef6a3c ## High Carbon Intensity Challenge India's steel sector currently generates emissions roughly 32% higher than the global average. Accounting for 12% of total national greenhouse gas emissions, the industry faces pressure to modernize. With production reaching 160 million tonnes in FY 2025-26, the country remains the world's second-largest steel producer, trailing only China in total output. ## Expanding Production Capacity Goals The government plans to increase crude steel capacity to 300 million tonnes by 2030-31 and 400 million tonnes by 2035-36. Achieving these targets while pursuing net-zero by 2070 requires immediate intervention. Current policies aim to lower emissions intensity from 2.65 to 2.2 tonnes of carbon dioxide-equivalent per tonne of crude steel. ## Traditional BF-BOF Dominance Approximately 43% of Indian crude steel is produced via blast furnace-basic oxygen furnace routes, which rely heavily on coking coal. This method is notoriously carbon-intensive, stripping oxygen from iron ore at high temperatures. Projections suggest this capacity could rise to 56% by 2030 if current investment trends in coal-based infrastructure continue unabated. ## Window for Strategic Redirection Research indicates that India has a critical opportunity to shift capital toward direct reduced iron and electric arc furnaces. By avoiding the relining of young blast furnaces, the industry could halve its committed emissions. Redirecting planned investments toward these greener pathways requires no additional capital, merely a strategic shift in project allocation. ## The Relining Infrastructure Trap Over 43 million tonnes of annual blast furnace capacity is scheduled for relining before 2030. This maintenance task extends plant lifespans by 15 to 20 years, effectively locking in coal-based production. Experts warn that failing to pivot now risks creating stranded assets that will be difficult and costly to decommission later. ## Technology Transition Pathways Since domestic scrap availability is limited, the most viable alternative to coal-based furnaces is the DRI-EAF route. Models suggest operating these plants with natural gas until 2040-2045, followed by a transition to green hydrogen. This phased approach balances cost-effectiveness with the necessary long-term decarbonization required to meet international climate commitments. ## Green Steel Certification Progress As of March 31, 89 steel units received green steel certification, covering 12.34 million tonnes of production. While critics argue the certification criteria are too broad, the initiative establishes a baseline for defining low-carbon steel. ArcelorMittal Nippon Steel India remains a notable participant, actively promoting its green steel to global buyers. ## External Market Pressures The European Union’s Carbon Border Adjustment Mechanism now imposes penalties on high-emission imports, directly impacting Indian steel exports. This regulatory pressure is forcing domestic manufacturers to reconsider investment decisions. Consequently, the industry is seeking alternative markets and boosting domestic consumption while exploring technologies that align with global low-carbon compliance standards. ## Pilot Projects and Innovation The Union Ministry of New and Renewable Energy has funded three pilot green hydrogen projects worth over Rs. 400 crore. Additionally, JSW Energy commissioned a commercial-scale green hydrogen plant to supply the JSW Steel DRI unit. These efforts aim to validate the technical feasibility of using hydrogen in furnaces for production. ## Future-Proofing Industrial Competitiveness Transitioning to EAF technology offers a future-proof pathway that supports both industrial growth and climate goals. While the sector faces a 'hard-to-abate' barrier, timely investment decisions can overcome these challenges at moderate costs. Prioritizing green hydrogen readiness today ensures that Indian steel remains competitive in an increasingly carbon-conscious global market. ## Sources covering this story - https://www.thehindu.com/sci-tech/science/india-can-cut-steel-emissions-before-new-coal-plants-lock-them-in/article71437954.ece — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._