Collaboration between BHP and India to Decarbonize Steel Production
SAIL is exploring technology and abatements on its blast furnace in line with India’s target to decarbonise its steel industry.
Mining giant BHP will collaborate with the Steel Authority of India Limited (SAIL) in decarbonising steel production, which will involve considering alternate reductant such as hydrogen and biochar for blast furnaces.
SAIL, India’s largest state-owned steel producer, is exploring technology and abatements on its blast furnace in line with the country’s target to decarbonise its steel industry.
“SAIL is looking forward to this collaboration with BHP in taking a step forward towards engaging in developing sustainable ways to produce steel,” said Amarendu Prakash, SAIL’s chairman.
“The emergent need to align the steel sector with climate commitments is non-negotiable. SAIL is committed to contributing towards tackling the issue of climate change through fostering an innovative future for the steel industry in India.”
India has committed to reducing its carbon intensity to below 45 percent by 2030 and reaching net zero emissions by 2070. BHP emphasised that the country cannot do this alone and the memorandum of understanding it signed with SAIL is a significant step in achieving the target.
“BHP has a long-established relationship with SAIL, and we are pleased to be extending and strengthening this relationship to explore decarbonisation opportunities for the blast furnace route,” said Rag Udd, BHP’s Chief Commercial Officer.
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“We recognise that decarbonising this industry is a challenge that we cannot meet alone, and we must come together to leverage shared expertise and resources, to support the development of technologies and capability that could have the potential to create a real change in carbon emissions both now and in the longer term.”
The Institute for Energy Economics and Financial Analysis (IEEFA) previously said it expects India to have green hydrogen as the primary route of steelmaking only by 2050 due to the high cost of green hydrogen and the need to penalise Indian steelmakers on carbon emissions, to urge them to switch to hydrogen-based steelmaking.
IEEFA and JMK Research forecast that green hydrogen will replace 25 percent to 30 percent of India’s grey hydrogen requirements in the early 2030 to 2050 period, and will increase to 80 percent by 2050.
In June, the Indian government published its policies and initiatives aimed to reduce carbon emissions in steelmaking. These include the Steel Scrap Recycling Policy, National Green Hydrogen Mission, National Solar Mission, and the National Mission for Enhanced Energy Efficiency’s Perform, Achieve and Trade (PAT) scheme.
The country has also implemented Japan’s New Energy and Industrial Technology Development Organization (NEDO) model projects for energy efficiency improvement at Tata Steel’s blast furnace hot stoves waste gas recovery system and coke dry quenching.
In addition, India implemented steel manufacturer Rashtriya Ispat Nigam’s sinter cooler waste heat recovery system, and SAIL’s energy monitoring and management system.
