Technology is at the heart of this green shift, as highlighted at the ISA Steel Conclave 2025. AI tools are improving efficiency, while green hydrogen in Direct Reduced Iron processes promises major emission cuts, though costs remain a challenge. The recent two-day Indian Steel Conclave 2025, hosted by the Indian Steel Association (ISA), has shone a light on decarbonization and future-ready growth through technology adoption in the steel sector. Bringing together industry leaders, Union ministers, policymakers, and experts, the event charted a sustainable path amid rising steel demand fueled by India’s infrastructure boom.
As the nation walks towards Viksit Bharat by 2047, massive construction and infra projects are set to increase steel consumption, but this growth must zero in on with low-carbon goals. Stakeholders, supported by government policies, need to join hands for effective decarbonization, ensuring the sector drives economic progress without harming the environment.
India’s steel industry is riding a wave of growth, with production reaching 144 million tonnes in fiscal 2024, cementing its position as the world’s second-largest producer after China, according to the Ministry of Steel. Per capita consumption, currently at 98 kg, is expected to climb to 160 kg by 2030 as infra spending soars.
The National Infrastructure Pipeline and Make in India initiatives are pumping Rs 11 lakh crore annually into roads, railways, and urban projects, boosting demand. According to published media reports, steel demand could hit 240-260 million tonnes by 2035. This surge is key to economic growth, though it raises emissions concerns, with steel accounting for around 8-9 per cent of India’s CO2 output, per government estimates.
Deloitte’s report on Odisha’s steel strategy notes the state alone aims for 90 MT capacity by 2030, contributing 40 per cent to national targets, but faces hurdles like raw material security.
The Ministry of Steel is spearheading the move to green steel, introducing a Green Steel Taxonomy in March 2025 to classify low-emission products. Steel with emissions below 1.6 mtCO2e per tonne qualifies for a five-star rating, pushing producers towards cleaner practices.
Minister HD Kumaraswamy, in a recent statement, stressed innovation to meet India’s net-zero target by 2070, saying adoption of low-carbon emitting technologies to produce green steel is no longer a choice but a necessity. Pathways like hydrogen-based Direct Reduced Iron (DRI) and Carbon Capture Utilization and Storage (CCUS) are gaining traction, supported by the National Green Hydrogen Mission (NGHM) aiming for 5 MT by 2030.
Kearney’s report highlights that BF-BOF (Blast Furnace-Basic Oxygen Furnace) routes dominate, with emissions at 2.68 tCO2/tcs, but shifting to gas-based DRI-EAF could lower it to 2.13 tCO2/tcs (which indicates that producing one tonne of crude steel releases 2.13 tonnes of CO2 into the atmosphere.)
Scrap use in steel production offers a practical way to cut emissions. Scrap-based electric arc furnaces (EAF) emit 71 per cent less CO2 than traditional blast furnaces, as per Ministry data. India generates 25-30 million tonnes of scrap yearly, but recycling lags at 20-25 per cent, with imports bridging the gap. The Vehicle Scrappage Policy aims to boost scrap availability, reducing reliance on imported coking coal. McKinsey’s analysis shows global leaders like the US use 70 per cent scrap, and India could ramp up to 50 per cent by 2047 to align with net zero.
Technology is at the heart of this green shift, as highlighted at the ISA Steel Conclave 2025. AI tools are improving efficiency, while green hydrogen in Direct Reduced Iron processes promises major emission cuts, though costs remain a challenge.
The NGHM is driving pilot projects, with growing export demand for green steel. Kearney suggests ethanol blending and CCUS pilots to re-carbonize processes using biomass. Deloitte emphasizes Odisha’s role, where mineral revenue from auctioned mines could rise by Rs 11,754 crore if full EC capacity is utilized, funding green initiatives.
Collaboration is key for success. The Ministry’s Green Steel Initiative pushes carbon capture utilization and storage and biomass use, while conclave discussions urged incentives and public-private partnerships. With infra driving steel demand to 240 MT by 2035, decarbonization is critical for India’s net-zero goal by 2070.
The conclave reinforced that united efforts can position India as a green steel leader. McKinsey warns of the European Union’s Carbon Border Adjustment Mechanism impacting exports, urging USD 10-15 billion annual investments in tech. EY forecasts green steel demand at 179 MT by FY50, but premiums add 3-4 per cent costs in auto and infra. Odisha’s strategy projects 1.15 lakh jobs from expansion, per Deloitte, highlighting socioeconomic benefits.
As India aims for a steel production capacity of 500 million tonnes by 2047, finding ways to grow the industry while protecting the environment is crucial. Kearney’s strategies suggest using natural gas or hydrogen in the iron-making process — known as Direct Reduced Iron — could slash emissions by 95 percent.
However, this needs strong government backing, such as policies for capturing and storing carbon emissions (CCTS). Reports from the conclave highlight the importance of teamwork to tackle high costs and supply challenges, turning the goal of cleaner steel production into reality.
(The author is a commentator on social and political issues; Views expressed are personal.)
