Page 23 - Tcexpression2021 - Sept to Dec 2020
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Technologies are being deployed for a transition in   Steel is mainly produced by two routes:
        energy systems starting with generation & use of
        renewable energy sources and moving towards hard      Iron ore-based steelmaking and
        to abate Energy-intensive and Emission-intensive      Scrap-based steelmaking.
        industries such as Power, Metals (primarily Iron & Steel
        and Aluminium), Cement, Refineries.                   In total, 70% of the world steel is made BF-BOF route,
                                                              where iron ore is reduced in Blast Furnace and then
        Although aluminium takes a lower position in          converted into steel in Basic Oxygen Furnace (BOF).
        cumulative contribution, primary aluminium            Raw materials are mainly iron ore, coal, limestone and
        production is very energy-intensive. Emission intensity   steel scrap. Electric Arc Furnace produces balance
        is around 4.8 tCO /t of aluminium against the global   (EAF) wherein scrap steel, or Direct Reduced iron (DR)
                        2
        average of 2.2 tCO /t of crude steel. The energy source is   is mainly used as raw materials and electricity as the
                         2
        primarily electricity. Majority of the power consumption   energy source. In FY2020, share or crude steel BF-BOF
        is from inhouse power generation, primarily based on   route was 44%, EAF- 26% and IF (Induction furnace) was
        coal (~60%). Work on improvements in CO  emissions    30% in India. Global average carbon emissions from
                                               2
        is in improved recycling, flexibility to adopt renewable   above routes:
        power, and development of non-carbon consumables
        such as inert anodes.

        At around 1.9 billion tons of global steel production per                 Natural Gas         Scrap
        year and about 19 gigajoules (GJ) (0.45 tonnes of oil      BF-BOF           based            based
        equivalent) of energy required per ton of crude steel,                     DRI-EAF             DRI
        the industry emits around 2.6 Gt direct CO  emissions        CO  Emissions (Direct + Indirect )
                                                                                                         *
                                               2
        annually.                                                       2
        Similarly, Steel Industry stood highest as a single sector   2.2 t CO  / t cs  1.4 t CO  / t cs   0.4 t CO  / t cs
                                                                                        2
                                                                       2
                                                                                                         2
        in industrial energy consumption and CO  emissions in      (1 + 1.2)       (1 + 0.35)      (0.04+0.35)
                                              2
        India in 2019.
        Consequently, steel players across the globe are
        increasingly facing a decarbonisation challenge. Three   *Indirect emissions include emissions from the required electricity and
        key developments drive this challenge:                other energy imports. Coal-based DR kilns emit three times that of direct

            Changing customer requirements and growing        emissions by gas-based DRI.
            demand for carbon-friendly steel products. A
            trend that has already been observed in various
            industries, including the auto industry.          While energy intensity and carbon emissions are closely
                                                              linked, the path towards energy transition in iron and
            Further tightening of carbon emission regulations   steel sector can be divided into three segments:
            manifesting in carbon dioxide reduction targets
            and rise in carbon dioxide emission prices.           Reduce the energy intensity of current processes:
                                                                 Energy efficiency improvement with waste heat
            Growing investor and public interest in              utilisation, Process efficiency improvement
            sustainability. For example, the Institutional
            Investors Group on Climate Change, a global           Replace fossil fuels for production:
            network with 250-plus investors, has raised          Electrification and use of Renewable energy, low
            expectations for the steel industry to safeguard its   carbon Hydrogen, Biomass utilisation
            future in the face of climate change.
                                                                  Develop new production pathways with low carbon

        With substantial projected capacity additions (100 –     footprint:
        140 MT) by 2030-31 in India and high reliance on coal,   Process intensification with hybrid technologies,
        green/clean technology is very relevant for iron & steel   Improved Scrap recycling and utilisation.
        industry even in India.




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