- High-grade steel’s share to be raised to 50% of total output
- 60% of steel to be produced using scrap
- Share in global production to be expanded to 20%
- Crude steel capacity target at 500 mnt by 2047
Morning Brief: The Ministry of Steel is putting a conspicuous stress on decarbonization in its Vision 2047, a copy of which is in possession of SteelMint.
The vision document, taking a holistic view of the industry’s future evolution, has covered supply and demand sides, global market aspects, raw material requirements and growth parameters.
Green mission
But, more importantly, the ministry’s Mission on Green Steel envisages raising steel production capacity through scrap to 300 million tonnes (60%) and reducing the CO2 emission intensity by 50% from 2.6 T CO2/T to 1.3 T CO2/T of crude steel.
The Mission envisages reduction in carbon dioxide emission intensity by 20% by 2030, 50% by 2047 and 100% by 2070.
These targets are aimed to be achieved through a combination of factors. These include 60% steel production through scrap; reducing coking coal import dependence; maximising pellet usage; and 100% gas-based DRI production. Other factors include increased use of Green H2 and carbon capture, usage and storage (CCUS) and 100% renewable energy use.
The vision roadmap sees usage of thermal coal reducing to 11 mnt from 60 mnt in 2022, 43 mnt in 2030 and 35 mnt by 2040. It is a well-known fact that, globally, climate watchers are looking to clamp down on coal producers over environmental concerns.
Again, indicating the emphasis on decarbonization, the ministry sees the BF-BOF:EAF/IF ratio getting altered from the present 44:56 to 40:60 by 2030, 30:70 by 2040 and 25:75 by 2047.
The share of the small-scale sector, which is seen as a polluting source, will be gradually reduced. The integrated steel producers (ISP) and small-scale industries (SSI) or ISP:SSI ratio is seen realigning from the present 60:40 matrix to 75:25 by 2047, indicating the rise and dominance of the larger mills, a scenario that can see consolidation in the future. It also presupposes that the larger mills would stress on green steel-making since the blast furnace and basic oxygen furnace route will be gradually reduced and replaced by the greener electric arc furnace method of steel-making.
Other targets
1. Supply side: The document envisions boosting high-grade steel share to 50% of total production and raising crude steel capacity to 500 million tonnes (mnt) from 154 mnt in 2022, with 20% contribution in global steel production in its Vision 2047.
2. Demand-side: This includes increasing the country’s total steel consumption from 106 mnt to 400 mnt by this deadline. Per capita consumption is to be raised from the current 77 kg to 245 kg and rural consumption, from the current 21.3 kg to 80 kg in another 25 years. Obviously, the government aims to expand rural consumption by widening and innovative usage.
3. Global markets: The government is eyeing an expanded and ambitious 20% share in global steel production from the present 6%. The document also envisions an increase in the share of steel exports to 20% of total production by this period from the present 12% (13.5 mnt) as per ministry data.
Key focus areas
- Generating demand
- Adding capacity
- Reducing CO2 intensity
- Achieving raw material security
- Improving quality and efficiency
- Increasing exports of high-grade steel
- Adopting Industry ‘x’.0
- Improving logistics and infrastructure
- Human resource development
- Industrial safety and health
- Research, design development
- Capital requirement
Inputs solicited
The Ministry of Steel is seeking projection inputs from industry stakeholders in terms of production, challenges, policy enablers and action points in Vision 2047.
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