Steel Ministry Favours Usage of Gas in Pellet Production

Paying heed to the pellet manufacturers’ demand, the steel ministry has initiated talks with the petroleum and natural gas ministry to ensure guaranteed availability of natural gas to them at affordable prices, a senior steel ministry official said.
 
“However, the matter is still under discussion and will depend on the availability and affordability of natural gas,” said the official seeking anonymity.
 
The steel ministry favours the usage of natural gas as the heat source during pellet production on two grounds – it will reduce carbon foot-print of the steel sector and secondly, it will promote environment-friendly production processes.
 
The promotion of natural gas usage is also important to implant the proposed new steel policy which envisages the promotion of gas-based steelmaking facilities across the country as an alternative to reduce dependency on imported coking coal.
 
As of 2015-16, there exists pelletisation capacity of about 85 MnT with a capacity utilisation 32.5% in the country.
 
Sensing that there is a pressing need to utilise low-grade iron ores including slimes and dump fines which are stockpiled at different mine heads, the ministry intends to encourage optimal use of existing low-grade iron ore resources with the aim of conserving high grade ores in the proposed steel policy.
 
“Impetus will be given to pellet industry as it will help in mineral conservation by acting as direct feed-stock in blast furnace in place of high grade iron ore,” it said.

Indian Pellet Scenario in FY16