Indian steel and cement sectors combined will need capital expenditure of $627 billion to achieve net zero carbon emissions, according to a report of India’s Council for Energy, Environment and Water (CEEW) released on Friday, October 13.
Achieving 8-25 percent and 32 percent reductions in emissions from steel and cement, respectively, is feasible without price escalation by adopting technologies like waste-heat recovery and energy-efficient systems, as per the CEEW research, which was funded by ‘bp’, an integrated energy company.
The study highlights that the Indian steel industry emitted 297 million mt of carbon dioxide in crude steel production in 2021-22, translating to an average emission intensity of 2.36 tCO₂/tcs (measured as per mt of carbon dioxide per mt of steel output) compared to the world average of 1.89 tCO₂/tcs.
The industry could see near net-zero steel production costing 40-70 percent more, depending on technology, production methods, and the utilisation and storage of captured carbon (CCUS).
To expedite the net-zero transition, the CEEW study urges the adoption of optimal energy-efficient technologies and incentivization of renewables through minimal or zero transmission charges. It also calls on the government to prioritize the establishment of a CCUS ecosystem and to leverage hydrogen’s pivotal role in this endeavour, recommending a focus on this aspect in the next phase of the National Green Hydrogen Mission.