Trying Hard To Abate: Indian Cement And Steel Makers Are Going The Extra Mile
Almost 70% of the infrastructure that India needs to become developed by 2047, whether it’s roads, ports, airports or power plants, is yet to be built, leaving huge scope for the country to make its public works sustainable. With that in mind, steel and cement makers in the world’s fifth-largest economy are transitioning towards low-carbon manufacturing by reducing dependence on coal to fire their plants. They are investing in new energy-efficient technologies, switching to renewable energy and even using waterways and trucks powered by liquefied natural gas and electricity. Steel makers are increasing the use of scrap and piloting production of green hydrogen. Of course, there’s a flip side to the effort. Integrating sustainability means spending more money. According to a steel ministry assessment, conventional steel costs Rs 55,000 per metric tonne, while green steel with 10% blending costs Rs 60,500; 20% and 30% blended products cost Rs 66,000 and Rs 71,500 per MT, respectively. The effort is not limited to manufacturing plants. For instance, Carbon Bank, launched by Tata Steel last year, helps customers adopt low-carbon steel aligned with global standards. Jindal Stainless recently inaugurated India’s first green hydrogen plant in the stainless steel industry to cut annual carbon emissions by 2,700 tonnes. ArcelorMittal Nippon Steel India is targeting about 70% output through green technology by 2027. Cement companies, too, are pumping large investments into renewable power and sustainable mobility. In December 2024, UltraTech Cement, India’s largest cement maker, used inland waterways to transport gypsum. The change has come during an opportune period as the per capita steel and cement consumption is set to increase given the massive infrastructure needs of the country. The per capita consumption of cement in India is 257 kg, far less than the global average of 540 kg. And per capita consumption of steel is around 77 kg per year compared with the global average of 233 kg. “The Ministry of Steel is already working on a green steel public procurement policy. The question is to what extent this policy would support the mandated entities in absorbing the higher costs attached with green steel,” says Parth Kumar, industry programme manager at the Centre for Science and Environment. “Mandated preference for low-carbon cement in government tenders could push the demand for low-carbon cement,” he says. Soon, public sector tenders may come with a clause for green steel procurement.
