India aiming to cut steel emissions by 25 percent, double capacity

NEW DELHI, India's steel mills aim to cut carbon ​emissions by about a quarter over the next decade and reduce reliance on coal, while ‌the world's second-biggest producer of the alloy plans to more than double output, according to a document seen by Reuters.
Under the proposed 'National Steel Policy 2025', India aims to cut emissions from steel mills to 2 metric tons of carbon dioxide per ​ton of finished steel by 2035-36, according to a draft cabinet note dated March 10, reviewed ​by Reuters.
Steelmakers in India emit ⁠about 2.65 tons of carbon dioxide per ton of finished steel, roughly 32% higher than the global ​average of 2 tons, and account for 10-12% of the country's total emissions, the document showed.
India has been ​hit by the European Union's carbon border tariff, which from January this year imposed fees on imports of steel, cement and other high-carbon goods, forcing New Delhi to scout for alternative export markets.
The policy proposes promoting gas-based steelmaking, increasing the use of ​steel scrap, and offering incentives for continuous emission reduction.
It also calls for collaboration with the oil ministry to ​secure overseas gas supplies and partnerships.
The steel ministry did not respond to a Reuters email seeking comments.
Only 21 percent of blast ‌furnace ⁠capacity and 5 percent of direct reduced iron (DRI) capacity - or sponge iron produced using gas or coal without melting it - have access to gas pipeline infrastructure, the document said.
'As steelmaking capacity grows, decarbonising the sector is crucial for meeting India's net-zero emissions target by 2070,' the document said.
Buoyed by rapid economic expansion and increasing infrastructure ​spending, India has set a ​target to expand crude ⁠steel capacity to 400 million tons by 2035-36, up from current output of about 168 million tons.
The country also aims to more than double exports to 20 ​million tons.
Capacity expansion is expected to boost jobs in the steel sector, which ​employs 2.8 ⁠million people and accounts for 2.5 percent of the country's nearly $4 trillion economy.
India will need capital investment of around 17 trillion rupees ($183.41 billion) to reach 400 million tons of crude steel capacity, potentially creating over 3 million jobs by ⁠2035-36, the ​document said.
The policy also calls for cutting import dependence on ​coking coal, a key raw material, to 80 percent by 2035-36 from about 90 percent currently.
India has identified 19 countries for collaboration, including Australia, Russia, ​Japan, Germany and the United States.
Reuters