Carbon Abatement Options for Large Iron and Steel Plants in India

Abstract

7% of global carbon dioxide (CO₂) emissions are caused by the iron and steel industry. India produces 6% of the global crude steel, most of which comes from large steel plants using the blast furnace – basic oxygen furnace route and the natural gas – sponge iron – electric arc furnace route. This study investigates the carbon abatement potential and associated economics of major decarbonization options for the Indian iron and steel sector. These decarbonization options include improved energy efficiency, substitution of material and fuel, and adaptation of renewable energy. The marginal abatement and green premium curves, obtained through mass and energy balances of a typical iron and steel plant, incorporate the interdependency of measures and present the techno-economic aspects. The analysis shows that the blast furnace – basic oxygen furnace process can be completely decarbonized, with nearly 15.8% of the CO₂ emissions being eliminated without a net cost to the consumers. Similarly, 98.8% of the CO₂ emissions can be abated in the natural gas – sponge iron – electric arc furnace route. These results are expected to be helpful for policymakers and industry stakeholders in planning policy impetus and achieving net-zero targets for the Indian iron and steel sector.