New Delhi: India has now outpaced China to become the world’s foremost developer of steel, boasting a pipeline capacity of 258 million tonne per annum (mtpa), according to the latest report by Global Energy Monitor (GEM). This significant development comes with its set of challenges, primarily the country’s continued reliance on coal-powered technologies.
The GEM report, which tracks the advancements in the steel industry, highlights a striking contrast in the global shift towards greener production methods and India’s ongoing projects. Despite a global trend where 93 per cent of new steelmaking capacity uses the lower-emissions electric arc furnace (EAF) technology, India remains a major developer of basic oxygen furnace (BOF)-based steel, which is heavily dependent on coal.
Of the total steel capacity currently under development in India, 177 mtpa is being developed using BOF technology. The report also points out that a considerable 84 per cent of India’s planned steel capacity has not yet proceeded to the construction phase, presenting an opportunity for the country to reconsider and possibly redirect these projects towards more environmentally friendly methods.
Marie Armbruster, a project manager at Global Energy Monitor, emphasized India’s critical role in the future of steel production and its impact on global emissions. “India’s sheer volume of steel production has huge potential to push the emissions of the global steel industry towards net zero production,” she said. Armbruster urged India to pivot from coal and adopt green hydrogen technology for its direct reduced iron (DRI) capacity, which would align its production processes with global net-zero goals.
The report reflects on the broader global context, noting that while the adoption of cleaner EAF technology is on the rise, the implementation remains slow, with ongoing new projects still favoring coal-based methods. Nearly 46 per cent of all new steelmaking construction globally uses coal-powered technology, marking a significant area of concern for environmentalists.
As India positions itself as a leader in steel production, the GEM report calls for a strategic reassessment of production technologies to meet environmental targets and reduce the overall carbon footprint of the industry. This transition, according to experts, is not just crucial for sustainability but is also essential for maintaining competitiveness in the increasingly eco-conscious global market.
