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Under Sustainable Growth Pillar of India-US Strategic
Clean Energy Partnership Sl. No.Name and designationPosition
1. Sh. Neeraj Sinha, Sr Adviser (S&T), NITI Aayog Chairman
2. Ms. Rasika Chaube, Additional Secretary, Ministry
of Steel
Member
3. Sh. Sudhendu Jyoti Sinha, Adviser (Transport),
NITI Aayog
Member
4. Sh. BP Pati, Joint Secretary, Ministry of Coal Member
5. Sh. BN Mohapatra, Director General, National
Council for Cement and Building Material
Member
6. Dr Ashok Kumar, DDG, Bureau of Energy
Efficiency
Member
7. Representative from the Department of Heavy
Industries
Member
8. Sh. Nirvik Banerjee, ED, Steel Authority of India
Limited
Member
9. Sh. Ashok Kumar Rajput, Chief Engineer (RT&I),
Central Electricity Authority
Member
10.Sh. Rajib Kumar Paul, Director, National Institute
of Secondary Steel Technology
Member
11.Sh. Anil Kumar, Scientist D, Ministry of New and
Renewable Energy
Member
12.Dr Ajay Arora, GM (Fuels), R&D Centre, Indian Oil
Corporation Limited
Member
COMPOSITION OF
THE INTER-MINISTERIAL
COMMITTEE
iii
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership 13.Sh. Prabodh Acharya, Chief Sustainability Officer,
Jindal Steel
Member
14.Sh. SAurabh Kundu, Chief Process Research,
TATA Steel
Member
15.Sh. Prashant K Banerjee, Executive Director
(Technical), Society of Indian Automobile
Manufacturers
Member
16.Sh. Priyavrat Bhati, CSTEPMember
17.Sh. Raju Goyal, Chief Technical Officer, UltraTech
Cement Ltd
Member
18.Sh. Ashwani Pahuja, Chief Sustainability Officer,
Dalmia Cement (Bharat) Ltd
Member
19.Sh. Philip Mathew, Holcim, Head – Cement
Manufacturing Excellence Asia
Member
20. Prof Prodip Sen, IIT KharagpurMember
21.Ms Apurva Chaturvedi, Sr Clean Energy Specialist,
USAID
Member
22. Ms. Sha Yu, Senior Scientist, Pacific Northwest
National Laboratory (PNNL)
Member
23. Mr David Palchak, Group Manager, National
Renewable Energy Laboratory
Member
24. Mr Nikit Abhyankar, Scientist, Lawrence Berkely
National Laboratory
Member
25. Sh. Manoj Kumar Upadhyay, Deputy Adviser
(Energy), NITI Aayog
Member Convener
Composition of the Inter-Ministerial CommitteeReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
iv
iv
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership v
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
FOREWORD CONTENTS Composition of the Inter-Ministerial Committee iii
Foreword v
About the Sustainable Growth Pillar under the
India-US Strategic Clean Energy Partnership 1
1. Introduction 2
2. Decarbonization of Industries 3
3. Technologies Enabling Decarbonization - Example of
Waste Heat Recovery 6
4. Decarbonization of Cement Industry 8
5. Decarbonization Options for Steel Industry 17
The Way Forward 18
6. Annexure I 26
7. Annexure II 28 ABOUT THE SUSTAINABLE
GROWTH PILLAR UNDER THE
INDIA-US STRATEGIC CLEAN
ENERGY PARTNERSHIP
1
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
The long history of energy cooperation between the United States and India have
powered lives and livelihoods. On the margins of the April 2021 Leaders Summit
on Climate, President Biden and Prime Minister Modi announced the launch of
a new bilateral partnership to advance shared climate and clean energy goals.
The U.S.-India Climate and Clean Energy Agenda 2030 Partnership includes the
Strategic Clean Energy Partnership (SCEP) which was earlier established as the
Strategic Energy Partnership in 2018 and had replaced the U.S.-India Energy
Dialogue, the previous intergovernmental engagement for energy cooperation.
The revitalized SCEP will continue to advance energy security and innovation
with greater emphasis on electrification and decarbonization of processes and
end uses, scaling up emerging clean energy technologies, while finding solutions
for hard-to-decarbonize sectors. Engagement with the private sector and other
stakeholders will remain a priority.
The Sustainable Growth (SG) Pillar under the U.S.-India Strategic Clean Energy
Partnership takes a broader role in advancing low-carbon development and
improving inclusive and sustainable economic growth through climate responsive
strategies, long-term plans, and energy data management. India is well on its way
to leverage its expanding and diverse economy, capitalize on its demographic
dividend and benefit from its rapid urbanization. The country’s growth could be
further enhanced with addressing energy issues along with ensuring financial and
environmental sustainability as a climate responsible country. India is prioritizing
strategies which could improve energy security, reliability, and affordability,
universal energy access, and resiliency of energy systems to cyber-attacks and
extreme weather events. As part of the agenda of the Pillar for 2021-22, three
committees were formed on important issues of energy data management, low
carbon technologies and just transition from coal. 1. INTRODUCTION
2Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
1.1 The challenge of climate change has created an urgent requirement to adopt
clean and environment friendly technologies. Goal 9 of the Sustainable
Development Goals has increased resource use efficiency and greater
adoption of clean technologies and industrial processes as one of its targets.
Industry emits about 28% of global greenhouse gas (GHG) emissions of
which 90% are carbon dioxide emissions.
1.2 In the Indian context industries contribute approximately one-fourth of
India’s total GHG emissions. Within industry half of the emissions are from
iron and steel and cement sector – either through energy use or industry
process emissions. In order to meet the targets aimed at addressing climate
change there is a need for addressing hard to abate sectors. 2. DECARBONIZATION
OF INDUSTRIES
3Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
2.1 Some of the challenges faced in decarbonization of industries are as follows:
1. The processing of feedstocks generates about 45 percent of CO2
emissions in the focus sectors. These emissions can only be reduced
by changing feedstock’s or processes, rather than changing to low-
carbon energy sources.
2. Sectors such as steel and cement have a large demand for high-
temperature heat (in the focus sectors the high temperature heat demand
ranges from 700 °C to over 1,600 °C which generates 35 percent of CO2
emissions). To replace the fossil fuel for heat generation with electricity
or hydrogen requires a significant change in the production process and
development of alternative furnace designs. Up to ~1,000 °C, adaptation
and scale up of electric furnace technology is needed. For temperatures
above ~1,000 °C, such as required for cement production, research is
required to develop industrial-scale electric furnaces.
3. Steel is traded globally (cement is not). Companies or countries that
increase their costs of production by adopting low-carbon processes
and technologies will find themselves at a cost disadvantage to industrial
producers that do not.
4. The products made from the steel or iron industry are basically
commodities for which cost is the decisive consideration in purchasing
decisions. Companies in the these sectors therefore compete mainly on
price, so implementing decarbonization options that increase the cost
of production will put them at a disadvantage.
2.2 Industrial companies can reduce CO2 emissions in various ways, with the
optimum local mix depending on the availability of biomass, carbon-storage
capacity and low-cost zero-carbon electricity and hydrogen, as well as
projected changes in production capacity. 2. Decarbonization of Industries Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
4
2.3 There exist the following decarbonization options for industries:
1. Demand-side measures: Decreasing the demand for an industrial
product should lead to lower production and CO2 emissions. For
example, light-weighting can reduce the demand for steel, and cement
could be replaced by materials such as wood. In addition, increasing the
circularity of products, e.g., by increasing recycling or reuse of plastics
and steel, would lessen CO2 emissions by reducing the production of
virgin materials.
2. Energy-efficiency improvements: Increases in energy efficiency can
economically cut fuel consumption for energy use by 20 to 40 percent
across sectors. Potential gains in energy efficiency will differ between
sectors and facilities. Using less fossil energy to make industrial products
will lower CO2 emissions.
3. Electrification of heat: Emissions from the use of fossil fuels to
generate heat can be abated by switching to furnaces, boilers, and
heat pumps that run on zero-carbon electricity. Electrifying heat can
involve a change in the production processes. For example, to electrify
ethylene production, companies need to install both electric furnaces
and electrically driven compressors.
4. Hydrogen usage: Emissions from the consumption of fossil fuel for
heat and emissions from certain feedstocks can be abated by changing
them for zero-carbon hydrogen. Hydrogen is generated by using zero-
carbon electricity for the electrolysis of water. For example, ammonia
production can be decarbonized by replacing the natural gas feedstock
with zero-carbon hydrogen.
5. Biomass usage: Like hydrogen, sustainably produced biomass can be
used in place of some fuels and feedstocks. Depending on the fuel or
feedstock required, biomass in a solid (wood, charcoal), liquid (biodiesel,
bioethanol), or gaseous (biogas) form can be used. For example, steel
producers in Brazil use charcoal as a fuel and feedstock instead of coal,
and chemical producers in several European countries experiment with
bionaphtha in chemicals production.
6. Carbon capture: With carbon-capture technology, CO2 can be collected
from the exhaust gases produced by an industrial process and prevented
from entering the atmosphere. The CO2 can be stored underground
(CCS) or used as a feedstock in other processes through carbon capture
and usage (CCU). 2. Decarbonization of Industries Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
5
7. Advanced Ultra Supercritical Technology
a. On being sanctioned by the Government of India, the implementation
of an R&D project for the development of the Advanced Ultra
Supercritical (AUSC) technology for thermal power generation –
jointly by a Consortium of the Indira Gandhi Centre for Atomic
Research (IGCAR), Department of Atomic Energy (DAE), Kalpakkam;
the Bharat Heavy Electrical Limited (BHEL) and the NTPC Limited –
had commenced on the 1st of April, 2017 and has ended successfully
on the 31st of December, 2020. The entire implementation of that
project was, very proactively, led by a Mission Directorate set-up
by the Department of Heavy Industry (DHI), Government of India,
in Noida, Uttar Pradesh. A high-level committee – called the Over-
arching Committee (OAC) – has contributed significantly in guiding
the said project to its successful completion. The OAC was chaired
by the Principal Scientific Adviser to the Government of India, with
the members being the Member (S&T), NITI Aayog; the Secretary,
DAE; the Secretary, Ministry of Power; the Secretary, DHI and the
Secretary, Department of Expenditure. The AUSC Mission Director
was the Member-Secretary to that Committee.
b. The successful completion of the project was despite the challenges
faced by the Consortium in the completion of the indigenous design
of the steam turbine (viz. the rotor and the casing) of the AUSC
project. That design, incidentally, is a global first, along with
several other such global firsts.
c. Based on the successful R&D work already done, the Consortium,
with the support of the Government of India, is planning to set-up
the world’s 1st AUSC thermal power plant, of 800 MWe capacity,
in Sipat, Chhattisgarh.
8. Other innovations: Besides the decarbonization options listed above,
other techniques for carrying out industrial processes could lead to CO2
emission reductions. For example, alternatives to limestone feedstock
could reduce process emissions in cement production. High-temperature
chemical processes can also be replaced by electrochemical processes,
in which electricity, rather than heat, drives reduction and oxidation
reactions. CO2 to methanol and Molten Carbonate Fuel Cell as a CO2
concentrator while generating power can also be examined as options
for decarbonization. 3. TECHNOLOGIES ENABLING
DECARBONIZATION -
EXAMPLE OF WASTE
HEAT RECOVERY
6Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
3.1 One of the prime measures to decarbonize industries, especially steel and
cement is to improve efficiency of the overall process. In this regard, Waste
Heat constitutes a substantial amount of energy in many core sectors
such as iron and steel, cement and power plants. Waste Heat Recovery
(WHR) is a method of recycling and re-using the heat that is escaping the
industrial processes after useful work is accomplished. The Government is
promoting energy conservation under the ambit of Electricity Conservation
Act. In order to support efforts towards a sustainable growth of economy,
reuse of waste heat generated by industries for electricity generation has
tremendous potential. It is estimated that 20-50% of input energy is lost
into the environment in the form of hot gases, hot air, hot water, etc, due to
process inefficiencies and technical limitations. These energy losses cannot
be recovered fully but may be reduced partially by improving efficiency of
processes/equipment as well as by deploying Waste Heat Recovery (WHR)
Systems.
3.2 US support is required in development and deployment of industrial
processes powered by electricity produced from clean energy sources as
a vital pathway in achieving decarbonization across the industries.
3.3 Substantial amount i.e. 20% to 50% of energy input being used by industry
is wasted as heat into environment in form of exhaust gases, waste streams
of air and liquids leaving industrial facilities. The industrial sector accounts
for about 45% of total electricity being consumed in India. Even considering
30% of this energy input being wasted by industry accounts to 160 billion
KWh annually or equivalent to 20000 MW of coal based power generation
capacity. This huge amount of waste heat is caused due to equipment
inefficiencies and thermodynamic limitations of the equipment/processes.
Hence industrial facilities can reduce these losses by installing Waste Heat
Power systems to improve overall equipment/process energy efficiency.
Therefore waste heat power (WHP) generation will reduce the energy
consumption per unit of production for Indian industries. Also WHP will 3. Technologies Enabling Decarbonization - Example of Waste Heat RecoveryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
7
result in savings of fossil fuels like Diesel/high grade coal/furnace oil, etc.
mainly used for captive power generation and thereby reducing nation’s
GHG emissions.
3.4 Waste heat in the industry is generated during fuel combustion or chemical
reactions, and can be utilised in Waste Heat Recovery (WHR) boilers to
generate steam. The increasing use of WHR systems in industries such
as refineries, paper and pulp, cement, heavy metals, petrochemicals and
chemicals for preheating, steam generation and power generation purposes
is expected to drive market growth in the coming years.
3.5 Benefits of WHP are the following:
1. Installation of waste heat power systems for captive power generation
can cater up to 20-40% of power consumption for a given industry and
electricity generated from waste heat power can displace power from
sources that generate emissions i.e. coal based thermal power plants.
2. Waste heat power plant reduces its consumer’s reliance on fossil fuel
based power generation.
3. Generation of electricity from WHP does not add any carbon dioxide
or heat in the atmosphere. Emission/temperature levels remains almost
same even with increased generation capacity of electricity without
using fossil fuels. 4. DECARBONIZATION OF
CEMENT INDUSTRY
8Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
4.1 Cement manufacturing releases CO2 through two main activities: energy
use and calcination reactions. Energy-related emissions (30–40% of direct
CO2 emissions) occur when thermal fuels, most commonly coal, are used
to heat a precalciner and rotary kiln. The other primary source of direct
CO2 emissions (“process emissions”) come from a chemical reaction that
takes place in the precalciner, where limestone (largely calcite and aragonite,
with chemical formula CaCO3) is broken down into lime (CaO) and carbon
dioxide (CO2). The CO2 is released to the atmosphere, while the lime is
used to make clinker, one of the main components of cement.
4.2 Cement production has substantial environmental impacts. Globally, cement
and concrete are responsible for 8–9% of GHG emissions, 2–3% of energy
demand, and 9% of industrial water withdrawals. Further, the selection
of fuels for cement kilns, and in part the kiln materials used, currently
lead to notable air pollutant emissions. It is critical to select mitigation
strategies that can contribute to reduced CO2 emissions while lowering
other environmental burdens. This is especially true considering the high
near-term projected future demand for cement. These factors must be
taken into consideration when evaluating strategies to decarbonize cement
production, one of the most difficult industries to decarbonize, due to the
need for high temperatures, the generation of CO2 process emissions, and
the large quantity of cement demanded globally.
4.3 To reduce energy-related emissions from cement (e.g. from the fuel used to
heat the precalciner and kiln), the main options are improving the thermal
efficiency of cement-making equipment, fuel switching, electrification of
cement kilns, and carbon capture and sequestration (CCS).
4.4 Reducing the moisture content of input materials improves energy efficiency,
as less energy is needed to evaporate water. This can be achieved by using
a dry-process kiln and ensuring the kiln has a precalciner and multi-stage
preheater. Recovered heat can be used to pre-dry input materials. A grate 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
9
clinker cooler is better at recovering excess heat than planetary or rotary-
style coolers. The extent to which these upgrades can reduce energy use
depends on the age and efficiency of the technology already in use. Most
modern kilns incorporate this processing stage, which is reflected in the
high-producing regions that recently expanded cement production capacity.
4.5 Certain mineral compositions can lower the temperature at which input
materials are chemically transformed into clinker, and less fuel is needed
to reach a lower temperature. However, some of these alternatives can
alter cement performance, so testing and certification of alternative cement
chemistries will be important. Another approach is to react fuel with oxygen-
enriched air, so less heat is lost in the exhaust gases. Oxy-combustion also
has the benefit of reducing the concentration of non-CO2 gases in the
exhaust stream, making carbon capture easier.
4.6 Today, 70% of global thermal fuel demand in the cement industry is met
with coal, and another 24% is met with oil and natural gas. Biomass and
waste fuels account for the last 6%. Biomass and waste fuels typically have
lower CO2-intensity than coal, though they may have other drawbacks, such
as a higher concentration of particulates in the exhaust.
4.7 To completely decarbonize heat production for cement, electrification of
cement kilns or CCS may be necessary. The best route may vary by cement
plant, as it will be influenced by the price and availability of zero-carbon
electricity, as well as the feasibility of carbon capture and storage at the
plant site. Due to the ability for hydrated cement to carbonate, and in doing
so uptake CO2, some work has started to quantify potential carbon capture
and storage through using crushed concrete and fines at the end-of-life.
Table 1
Challenges
Cement manufacturing is
Hard to Abate Sector
Process emissions : 50 – 55 % of the CO2
emissions attributable to process (de-carbonation
of limestone) where mitigation is only possible
through CCU
Combustion of fossil fuels : 30 – 35 % emissions
attributable to thermal energy needed in pyro-
processing
Emissions related to electricity use : 8 – 10 % of
total CO2 emissions
Onsite vehicular and equipment emissions : 2 – 5%
from liquid fossil fuels consumption 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
10
Challenges
Decarbonization Roadmap for Cement Sector
Scope 1
Reducing Carbon Footprint
of Electrical Energy
Improving efficiency through energy efficient
equipment
Renewable & Waste Heat
Optimize Waste Heat Recovery System
Waste Heat Recovery generation may be granted
the status of Renewable Energy, which are
operating with actual waste heat available
Recovery power generation from chlorine bypass
system
Digitization and Industry 4.0
Reducing Carbon Footprint
of Thermal Energy
Improving heat efficiency through efficient pyro
technology
Innovation in Pyro-processing Technology
Alternative green fuels (including green hydrogen)
and Sustainable Biomass (Bamboo energy plant)
to switch fossil fuels
Artificial intelligence and Industry 4.0 in pyro-
processing
Heat Electrification from Renewable Power
Solar Calcination/Clinkerisation
New clinker systems
Enhancing use of
Supplementary Cementitious
Materials
Enhancing the use of Blended Cements from the
existing 73% to 100%, replacing Ordinary Portland
Cement (OPC) with Portland Pozzolana Cement
(PPC), Portland Slag Cement (PSC), Composite
Cement (CC).
Flyash based cements
Enhancing the fly ash % in from the existing BIS
limit of 35% to 40%.
GGBF Slag Cements
Limestone based cements
Calcined clay/Natural Pozzolana based cements
Multi-blend cements
Reducing Process Emissions
Carbon Capture and Utilisation
New Novel Cements with Low Carbon/No Carbon
raw material
Reducing Emissions from
On-site Vehicles and
Equipment
Electric, Plug-in Hybrid, Fuel Cells or Pure Battery 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
11
Challenges
Scope 2
Emissions reduction by use of Renewable Energy
Scope 3
Emissions reduction by :
Concrete recarbonation during product use
Use of electric vehicles in logistics operations
Offsetting business travel
Green procurements
4.8 Suggestions for faster industry transition:
1. Switching from fossil fuel to sustainable biomass such as Agro waste/
Bamboo etc. and target setting for compulsory use of biomass as
alternative fuel.
2. Transition to Industry 4.0.
3. Target setting for adaptation of efficient pyro-process technology and
monitoring mechanism for its effective implementation.
4. Transitioning to 100% renewable power (RE 100):
Policies regarding amendments should be done at central level
and should not be not State Specific in order to promote the RE
projects,
ISTS charges: Waiver of ISTS charges for Inter State Open Access
Wheeling (Impact of Rs. 0.5/unit),
Electricity Duty: Waiver of Electricity duty on Captive consumption
from Solar (Impact of Rs.0.10/unit to Rs.0.6/unit),
Scheduling and Settlement of Power: For Captive Wheeling,
Scheduling of power should be allowed on monthly TOD basis and
not in 15 minute time block basis,
Banking of power: Banking provision should be provided for captive
consumers wherein Yearly Banking of power should be allowed on
RTC(round the clock) basis and shall be allowed even for Inter State
transaction and Balance Power if any after the Financial Year shall
be Procured by DISCOM on APPC Rate,
Capacity Restriction: There should not be any Capacity restriction
based on Grid contract Demand on captive consumers for Installation
of Solar or other Renewable projects. 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
12
Contract Demand reduction: Grid Contract Demand reduction on
average basis equivalent to the RE capacity,
Cross Subsidy Surcharges: Cross subsidy surcharges should be
waived off for Intra and Inter State Open access transactions (Third
Party and GTAM) as an Incentive,
Additional Surcharges: Non applicability of Additional Surcharges
for GTAM, 3rd Party or Group captive Consumers (levied in
Maharashtra, KN, TN, GUJ),
Evacuation Facilities: Evacuation Facilities from RE Project to
Consumer premises should be provided by DISCOM for Intra State
Consumers,
Net Metering: Net Metering should be allowed with no restriction
on grid CD capacity,
REC: REC should not be restricted to one State. In case of group
units in different States, REC generated in one State should be
allowed to comply RPO of other States.
5. Wastes to Circularity Renewable biomass and waste to replace fossil
fuel use in cement kiln:
Facilitate availability of waste land for sustainable biomass plantation/
Carbon sink creation in wastelands of India (26 million Ha. announced,
97 million Ha. actual waste landmass in India). Bamboo planted in
wastelands can have huge potential for fossil fuel replacement in
a big way.
Introduce landfill tax/polluter to pay policy to promote circular
economy models of greater waste utilization
Create Waste Generation Database (WGD), controlled by a Central
Body) for wastes, both legacy and daily generation
Creation of Municipal Solid Waste (MSW) pre-processing facilities
by all Municipalities for converting MSW to Refuse Derived Fuel
(RDF)
Create Micro-level Government-Industry-Private Entity (G-I-P)
partnership enterprise to facilitate transfer of processed waste
material from Source (Industry [processed waste]/Private Entity
[waste processor]) to Consumer (Cement Industry) 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
13
6. External actions needed to support Carbon Capture and Utilization
(CCU) for industry transition:
Government grants/viability gap funding for innovative and
disruptive CCU projects
Cross sector and cross country collaborations – The cross sector
and cross country collaborations to tap advantages of each sector
for policy advocacy, technical know-how and disruptive incubations
Encouraging green labelling and green procurement policies
Facilitating carbon markets
7. Other Suggestions for faster industry transition
Incentives for heavy-transport electric mobility: Provide GST/Toll
Tax incentives to the heavy-transport sector
Charging infrastructure: Develop adequate fast charging
infrastructure, every 25 km target
Green Hydrogen for fuel cells and turbines: Build cost competitive
green hydrogen with vast RE resources
Global Carbon Markets Access: The access to global carbon markets
for Indian companies should be ensured
Showcase Indian Industry actions: Highlight the climate actions of
progressive industries in various international and national platforms
such as UN General Assembly, COP-26, Leadership Summit, etc.
Waste Heat Recovery: Waste Heat Recovery based power projects
should be given the status and incentives of renewable power
4.9 The Way Forward – Cement Sector
The measures suggested for transition to low carbon technologies in cement
sector are discussed in section 4.8. The suggested measures are further classified
in terms of short term and long-term measures as well as categorized in terms
of policy, incentives and technological interventions. For better coordination and
swift implementation of the interventions, the related nodal ministry/departments
are also highlighted. 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
14
1. Policy Interventions
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. For Captive Wheeling, Scheduling of
power should be allowed on monthly
TOD basis and not in 15 minute time
block basis
Ministry of Power Short Term
2. Banking provision should be provided
for captive consumers wherein Yearly
Banking of power should be allowed
on RTC (round the clock) basis and
shall be allowed even for Inter State
transaction and Balance Power if
any after the Financial Year shall be
Procured by DISCOM on APPC Rate,
Ministry of Power Short Term
3. No Capacity restriction, based on
Grid contract Demand on captive
consumers, for Installation of Solar or
other Renewable projects.
Ministry of Power/
SEBs
Short Term
4. Grid Contract Demand reduction on
average basis equivalent to the RE
capacity
Ministry of Power Short Term
5. Evacuation Facilities from RE Project
to Consumer premises should be
provided by DISCOM for Intra State
Consumers
Ministry of Power/
SEBs
Short Term
6. Net Metering should be allowed with
no restriction on grid CD capacity
Ministry of Power/
SEBs
Short Term
7. Renewable energy Consumption
should not be restricted to one State.
In case of group units in different
States, REC generated in one State
should be allowed to comply RPO of
other States.
Ministry of Power/
Ministry of New and
Renewable Energy
(MNRE)
Short Term
8. Facilitate availability of waste land for
sustainable biomass plantation/Carbon
sink creation in wastelands of India
Ministry of
Environment, Forest
and Climate Change
(MoEF&CC)
Short Term
9. Introduce landfill tax/polluter to pay
policy to promote circular economy
models of greater waste utilization
MoEF&CCShort Term
10.Renewable power status for Waste
Heat Recovery based power projects
MNREShort Term 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
15
2. Technological Interventions
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. Cross sector and cross country
collaborations to tap advantages
of each sector for policy advocacy,
technical know-how and disruptive
incubations
Niti Aayog Short Term
2. Build cost competitive Green
Hydrogen with vast RE resources
Ministry of New and
Renewable Energy
(MNRE)
Long Term
3. Development of technology on Solar
Thermal Calcination
MoP/DST/MNRE/
DPIIT
Long Term
4. Development of technology on
Electrification of Pyro-processing
DST/MoP/MNRE/
DPIIT
Long Term
5. Development of Low Cost Technology
on Carbon Capture and Utilization
DST/Department
of Scientific and
Industrial Research
(DSIR)
Long Term
6. Development of Technology for
Utilization of Green Hydrogen in
Pyro-processing
MoP/MNRELong Term
7. Knowledge Transfer for Transition to
Industry 4.0 for reduction in energy
consumption
Niti Aayog/DPIIT/
DST/DSIR
Short Term
3. Incentives Required
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. Waiver of Inter State Transmission Charges (ISTS) charges for Inter State Open Access Wheeling (Impact of Rs. 0.5/unit)
Ministry of Power Short Term
2.
Waiver of Electricity duty on Captive consumption from Solar (Impact of Rs.0.10/unit to Rs.0.6/unit)
Ministry of Power Short Term
3. Waiver of Cross subsidy surcharges
for Intra and Inter State Open access transactions (Third Party and GTAM)
Ministry of Power Short Term
4. Non applicability of Additional Surcharges for GTAM, 3rd Party or Group captive Consumers (levied in Maharashtra, KN, TN, GUJ),
Ministry of Power/SEBs
Short Term 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
16
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
5. Create Waste Generation Database
(WGD), controlled by a Central Body)
for wastes, both legacy and daily
generation
MoEF&CCShort Term
6. Creation of Municipal Solid Waste
(MSW) pre-processing facilities by all
Municipalities for converting MSW to
Refuse Derived Fuel (RDF)
MoEF&CCShort Term
7. Develop an ecosystem to promote
the use of Alternative fuels and raw
materials and incentivize the industry
for maximizing the usage.
MoHUAShort Term
8. Create Micro-level Government-
Industry-Private Entity (G-I-P)
partnership enterprise for enhancing
utilization of Alternate fuels and raw
materials
MoHUA/ULBs Short Term
9. Government grants/viability gap
funding for innovative and disruptive
CCU projects
Niti Aayog Short Term
10.Encouraging green labelling and green
procurement policies
Ministry of Consumer
Affairs
Short Term
11.Facilitating carbon markets MoEF&CCShort Term
12.Provide GST/Toll Tax incentives to the
heavy-transport sector
Ministry of Finance/
Ministry of Road,
Transport &
Highways
Short Term
13.Develop adequate fast charging
infrastructure for electric vehicles,
every 25 km target
Ministry of Road,
Transport &
Highways
Short Term
14.Ensuring Global Carbon Markets
Access for Indian companies
Niti Aayog/MoEF&CC Short Term
15.Showcasing Indian Industry actions to
highlight the climate actions in various
international and national platforms
Niti Aayog/Ministry
of External Affairs
Short Term 5. DECARBONIZATION
OPTIONS FOR STEEL
INDUSTRY
17Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
5.1 India is the world’s 2nd largest steel producing country, producing more
than 100 MTPA and the National Steel Policy anticipates that a crude steel
capacity of 300 MTPA will be required by 2030-31 to cater to the projected
demand. Steel is also a key component of India’s energy system. In addition
to being an important input to much of its energy infrastructure, the sector
itself is a major energy consumer. The iron and steel sector are responsible
for around one-fifth of industrial energy consumption in India, with coal
accounting for 85% of its roughly 70 Mtoe of total energy inputs
1
. As a
result, the sector is highly emissions intensive, contributing almost a third
of direct industrial CO2 emissions, or 10% of the country’s total energy
system CO2 emissions. Therefore, a significant fraction of global efforts of
low carbon steelmaking are to be driven by Indian steel industry.
5.2 Technologically, steel industry in India is quite heterogeneous with several
process and input material combination and a wide range of different sized
facilities in primary and secondary sectors. With advanced technologies,
and under the right circumstances, the Indian steel industry could achieve
a transformation in the way it makes steel and reduce its environmental
impact. The Indian steel industry should plan to reduce its direct and
indirect CO2 emission by 60 % by 2050 in comparison to 2019-20 levels
to be in trajectory for net zero by 2070
2
. However, this change cannot be
an instantaneous shift. The key potential deep decarbonization technologies
are not yet techno-commercially feasible and hence, emissions reductions
till 2030 are expected through series of levers like improvement of process
and energy efficiency, energy transition to renewable sources, usage of
alternative fuel sources, ensuring the use of improved raw material quality,
and enhancing material circularity, etc. Thus, Decarbonization is required to
be done in phases:
1 IEA Roadmap for Iron and Steel Sector – Chapter 3
2 IEA Roadmap for Iron and Steel Sector 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
18
Phase 1 – (2022-2030): Emission Reductions in short term
Phase 2 – (2031-2050): Deep Decarbonisation technologies in the
medium to long term.
Phase 3 – (2050-2070): Offsetting and other interventions post 2050
towards net-zero.
The Way Forward
Phase 1 – Emission Reductions in Short term till 2030
5.3 The technologies required for emission cuts in the short term are not the
low-cost ones (like replacement of conventional lighting with LED or use
of Variable Voltage Variable Frequency drives along with high efficiency
motors), but the high cost ones, most of which are related to energy
efficiency and need a hand-holding by the GoI for its implementation.
5.4 Steel-producing fleet in India is only a little more than one third of the way
through its typical lifetime, which is around 40 years on average for these
assets. Many more blast furnaces and DRI furnaces will need to be built in
India before alternative near-zero emission routes are ready to enter the
market, and the country is projected to have a comparatively young fleet
in 2030. Therefore, in the near term it is crucial to maximise operational
efficiency in existing assets and to minimise additional emissions from new
infrastructure by investing in the BAT for commercial production routes until
near-zero emission alternatives reach market introduction.
Key Levers Feasibility and Recommendations
1. Monitoring
and
Assessment
The beginning of Phase – I of the Decarbonisation will require data
collection to categorise Iron and Steel Plants based on
Process
Extent of integration
Combination of processes.
Most of the MSME steel plants have a coal based DRI and Induction
Furnaces which has a much higher rate of CO2 per ton of steel
produced than Integrated ones. Thus, it becomes important to create
a centralized monitoring mechanism to step up the efficiency of
these MSME steel sector.
It is recommended to set up Energy Monitoring Cell to monitor
energy efficiency and CO2 emissions of MSME steel sector. (Ministry
of Steel and Bureau of Energy Efficiency, Long term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
19
Key Levers Feasibility and Recommendations
2. Energy and
Process
Efficiency
through im
plementation
of Best
Available
Technologies
(BAT)
Around 40% of blast furnaces in India are currently equipped with
top-pressure recovery turbines (TRTs), and more than 30% of coke
ovens are equipped with coke dry quenching (CDQ), two examples
of BAT. Both these shares should rise to around 70% by 2030
<?>
.
These and other measures like waste heat recovery systems, smelting
reduction technologies, CONARC technology etc. including those that
optimise operational efficiency, considerably improve performance.
Perform, Achieve and Trade (PAT) scheme by GoI was one such
measure which is driving the energy efficiency in steel plants. Conscious
early discontinuation or interim underutilisation of some obsolete
steel plant units is already taking place because of introduction of
Perform Achieve and Trade (PAT) Mechanism by Bureau of Energy
Efficiency (BEE) that makes them uneconomic. In spite of this, in
some plants, due to lack of space and logistics, retrofitting of energy
efficient equipment like coke dry quenching plant, blast furnace top
gas pressure recovery turbines, torpedo ladles, waste heat recovery
systems, hot charging in re-heating furnaces, walking-beam type
reheating furnaces etc. becomes non-viable.
It is recommended to prepare road map for covering the viability
gap in introducing such modern technologies in old plants. (Ministry
of Steel, Short Term)
It is also recommended that schemes like Japan’s deployment of
industrial energy and environmental technologies through New
Energy and Industrial Technology Development Organisation
(NEDO), may be deployed for utilization by needy plants. (Ministry
of Power, Long Term)
3. Demand
reduction
through
Material
Efficiency
This involves various sectors at different stages along the steel value
chain starting from transportation sector, buildings, automotive,
improving yields during manufacturing etc. With the use of Advanced
high strength steels in the value chain, the amount of material
consumed can be reduced there by increasing the material efficiency.
For example, it is proven that the use of Advanced High Strength
Steels (AHSS) can reduce total vehicle weight by 8-10% compared
to conventional steel which corresponds to a lifetime saving of
2-3 tonnes of greenhouse gases over the vehicle’s total life cycle
<?>
.
GoI has set ambitious target for electric mobility. The expansion of
the Electric Vehicles (EV) market is estimated to drive the demand
for EV component materials such as high-quality Cold Rolled Non-
Oriented (CRNO) electrical steel, which improves energy efficiency
by reducing power losses in several applications.
It is recommended to create a market and incentivise indigenous
manufacturing of such value added high quality and high strength
steel to help in reduction of carbon footprint. (Ministry of Steel,
Short Term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
20
Key Levers Feasibility and Recommendations
4. Reduction
in Coke rate
using High
Iron bearing
raw material
As the demand for steel increases to 255 MT in 2030-31, the demand
for iron ore is expected to be 437 MT by 2030
<?>
. With the rapid
depletion of natural resources, it will be difficult to receive high
grade iron ore in the future. Iron ore pellets are largely characterized
by inherent physical and chemical properties of the ore. Alumina
and silica play important roles in determining the productivity of
a Blast Furnace. This will have a significant impact on the energy
consumption and emission intensity of the steel production process
by affecting the productivity of a Blast Furnace.
It is recommended to promote advanced beneficiation of iron ore
and production of high grade pellets for BF feed to minimize coke
consumption. (Ministry of Steel, Long Term)
5. Energy
Transition
Scope 2 emissions of Indian steel industry stands at 75 Million tonnes
of CO2 for 111 MT of steel production in 2019-20. This amounts to
0.68tCO2/tcs of indirect emissions in steel industry
<?>
. An alternative
approach to using grid electricity is to harness Renewable Energy and
possibly directly in captive installation. Usage of renewable energy
during manufacturing process reduces these indirect emissions
there by reducing the total emission intensity significantly. Moreover,
increased usage of renewable energy is very important to decarbonize
the steel sector through production of electrolytic hydrogen which
is currently in the R&D stages, targeting to produce green hydrogen
economically and also eventually scaling up for industrial levels.
Recommendations provided under Section 4.8 of cement sector.
6. Increased
utilization of
Scrap
Steel plants, mostly integrated ones which produce steel from Iron
ore account for 75% of Global steel production, but emit almost 90%
of CO2 emissions due to their high CO2 intensity of 2.3 ton CO2 per
ton of steel produced. In contrast, Minimills, whose primary feedstock
is recycled steel scrap, account for the balance 25% of the global
steel production, but only 10% of emissions since they emit 0.6 ton of
CO2/per ton of steel produced. Every tonne of scrap used for steel
production avoids the emission of about 1.5 t of CO2, consumption
of natural resources of about 1.4 t of iron ore, 740 kg of coal and 120
kg of limestone, energy consumption by around 2½ Gcal and water
consumption by around 40 %. Such scrap based Steel units have the
potential to eliminate emissions by using renewable electric power.
However, ferrous scrap is not available due to the long service life
of steel products, given steel’s strength and durability. India, as a
developing economy, with very low apparent finished steel use per
capita of 64 kg, has limited amounts of domestic scrap to use as
a material in steelmaking. Most of the scrap supply in India today
happens through unorganised sector. At present, around 7 MT of
scrap being imported, provides a potential to harness this from the
domestic market itself. This shall require adequate collection centres, 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
21
Key Levers Feasibility and Recommendations
dismantling centres which shall work in a hub-spoke model and feed
to the scrap processing centres. To produce 7 MT more of scrap,
the country shall require 70 scrap processing centres each with
the capacity of 1 lakh tonnes; this is without disturbing the existing
dismantling centres. The 70 scrap processing centres shall require
about 300 collections and dismantling centres on the presumption
that 4 collecting and dismantling centres cater to scrap processing
centre. In 2030, at a requirement of > 70MT of scrap, India require
about 700 scrap processing centres, that is 700 shredders. These
shall in turn be fed by 2800-3000 collections and dismantling centres
spread all over the country
<?>
. Through National Resource Efficiency
Policy (draft), Government of India is aiming to reduce the import
of steel scrap to zero by 2030. Motor Vehicles (Registration and
Functions of Vehicle Scrapping Facility) Rules, 2021 is a significant
step in this direction.
It is recommended to facilitate and promote metal scrapping
centres to ensure scientific processing & recycling of ferrous scrap
generated from various sources & from a variety of products along
with assurance of availability of ‘quality’ and sized scrap at a price
below the cost of hot metal by subsidising scrap recycling industry.
(Ministry of Steel, Long Term)
7. Demand
Pull for low
carbon steel
Since steel is used in large quantities in infrastructure and construction
projects, their cost is a critical factor for overall project costs. Unlike
energy efficiency or captive renewable energy generation, currently
there is no business case from the consumer side towards this end;
the primary demand-side issue is that there is no actual prevailing
demand for low carbon steel products in the market; i.e, indication
on the part of consumers about their willingness to bear part of the
burden of additional cost to be incurred for transition towards low-
carbon steel. The weak demand can broadly be attributed to two
factors: lack of drivers to change consumer preferences and lack
of awareness. At present, consumers are largely driven by the cost
factor and are choosing the better-known and lower priced product.
It is recommended that the Preferential Public Procurement be
mandated that the government-funded construction projects source
at least a portion of their steel from low-carbon-emitting producers.
(Ministry of Steel, Short Term)
It is recommended to introduce standards for Green Steel
(e.g., GreenPro); establishing Buyer Clubs, etc. Introduction of
“Green Steel Inside” sticker. Consumers will probably have to pay
a bit more for green steel products - at least at first. Because steel
constitutes just a small portion of most products of which it’s a
component, that price premium is likely to be small. (Ministry of
Steel, Short Term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
22
Key Levers Feasibility and Recommendations
8. R&D
Collaborations
Promoting research and development including demonstration
projects in line with the support being extended by the government
in various countries for climate change may boost the transition.
It is recommended to evaluate and analyse all available technologies
worldwide, Indigenisation and CAPEX requirement for short term
and medium term (Phase 1 and 2) reduction of GHG emission.
(Ministry of Environment, Forest & Climate Change, Short Term)
Create a dedicated research and development fund, jointly funded
by the government and industry, aimed at achieving technological
breakthroughs and improving the commercial viability of
technologies. (Ministry of Steel, Short Term)
9. Access to
Finance and
Capital
This transition will require significant access to capital.
It is recommended to consider setting up a National Decarbonisation
Fund to finance the transition of Indian industry to a low carbon
economy. The public policy framework and regulations also needs
to help facilitate Indian companies to access international capital
for a financially feasible transition. (Ministry of Environment, Forest
& Climate Change, Short Term)
Phase 2 – (2031-2050): Deep Decarbonisation technologies in the medium to
long term.
5.5 For further emissions cuts, efficient energy use must be combined with
alternative technologies such as replacement with low-carbon fuel (hydrogen
direct reduction) or Carbon Capture Use and Storage (CCUS). The steel
sector is willing to undergo the required transformation, but this cannot
be done in isolation.
Technology Feasibility and Recommendations
1. Carbon
Capture
Usage/
Storage
(CCUS)
BF route Iron making process will always require coke (300-450 kg/ton
of Hot metal) with attendant CO2 emissions. So the process requires
capturing and sequestering all their CO2 emissions with Concomitant
CAPEX and OPEX implications. Here Cryogenic Oxygen plant
equipment supplier can be roped in to separate CO2. This is a normal
process in an Oxygen Plant installed in most Steel Plants.
Carbon capture and usage (CCU) concept includes converting steel
off-gases to fuels and chemicals. In reference to India’s iron and
steel sector, this becomes important as National Bio-Fuel Policy 2018
emphasizes on the production of Bioethanol/sustainable advanced
fuels using alternate options. As most of the off gases are rich in CO,
CO2 and Hydrogen, these become the obvious choice for producing
such chemicals and minimizing emissions considerably. There is a
company (now US based) LanzaTech who has a microbe based
process (fermentation) which captures carbon-rich waste gases from
the steelmaking process and converts them into sustainable fuels and
chemicals like Ethanol and 2, 3-Butanediol. 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
23
Technology Feasibility and Recommendations
It is recommended that Steel Companies evaluate this technology
and be provided with fiscal incentives/direct subsidies for the early
adopters. (Ministry of Steel, Short Term)
The principal long-term CO2 management options – alongside CO2
direct avoidance technologies – are either permanent geological
storage (CCS), or CCU for products that do not release CO2
emissions (are not oxidised) during use or at end-of-life. The latter
may include closed carbon cycles in which the CO2 in products
produced via CCU are recycled back into the system, such as plastics
being gasified and used as fuel in steel plants that then produce
plastics through CCU.
To move forward with CCS in India, it is recommended to conduct
a nationwide assessment of potential storage locations, ideally
undertaken by the Geological Survey of India (GSI), before
its potential can be understood. Such a study would provide
an understanding of the total potential and the relative costs of
developing those storage resources. This is vital to understand the
costs of CCU networks, which are impacted by the length of pipelines
and the number of point sources and storage locations.
2. Carbon
Avoidance –
Usage
of Green
Hydrogen
as a fuel in
Blast Furnace
An alternative to avoid the carbon emissions during the process of
steel making is to replace carbon with hydrogen as a reductant. In
traditional blast furnaces, by using hydrogen instead of coke for the
iron ore reduction process, the by-product is water (H2O) instead
of CO2. While hydrogen blending serves as a transitional strategy,
technical process constraints put an upper limit on the amount of
blending that can occur without equipment modifications, particularly
for blast furnaces which have a minimum coke requirement.
3. Carbon
Avoidance –
Usage
of Green
Hydrogen
for DRI
“Hydrogen Direct Reduced Iron” (H2 DRI) is another technology
that substitutes hydrogen for the coal or natural gas used for DRI
production. In a DRI furnace, the iron ore is heated but not to the
point of melting. Hydrogen then passes over the hot ore, combining
with oxygen liberated from the iron oxide to form water and leaving
relatively pure iron behind. If the electricity used to produce the
hydrogen and run the furnace comes from non-carbon-emitting
sources, then the overall process will result in little to no carbon
dioxide emissions. Therefore, green steel production will depend on
technologies and infrastructure for producing and handling green
hydrogen on a commercial scale. It is estimated from the various
research studies that the blend of Hydrogen in NG Based DRI can
go up to as high as 30% without any major process changes. 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
24
Technology Feasibility and Recommendations
4. Carbon
Avoidance –
Molten Oxide
Electrolysis
of Iron Ore
This technology employs electrolysis directly to the iron oxide ore
by placing it in an electrolytic cell filled with a mineral-bearing
solution. An electric current is run through the solution, heating it
up beyond the melting point of iron, and separating oxygen from
iron. If the electricity used to power the MOE process comes from
clean sources, the steel can be made with virtually no carbon dioxide
emissions. However, H2 DRI is already proven in Sweden through
project called “HYBDRIT” and GoI being very proactive in trying to
ensure the availability of green hydrogen usage in industries through
National Green Hydrogen Mission, there is a huge scope of its use
in steel industry.
5.6 Green Hydrogen is expected to increase traction in India to fast track the
decarbonization efforts in hard-to-abate sectors like fertilizers, refineries,
steel, etc. Electrolysers used for green hydrogen production have extremely
limited capacity in India and need enormous focus to scale up the
manufacturing capacity. It is recommended to support the nascent industry
in the initial years to realise its true potential. (MNRE/DPIIT/Ministry of
Micro, Small and Medium Enterprises, Short Term)
5.7 Projects on hydrogen in Sweden and Germany are heavily supported by
Government and private funding institutions. In India, industries can take
up bold large-scale trials/projects with funding support and there must be
incentives required to take up work on hydrogen till the process becomes
mature enough for economic merit. It is recommended to incentivize the
process of setting up pilot plants projects and products which can create
faster sustainable solutions. (MNRE/DPIIT/Ministry of Micro, Small and
Medium Enterprises, Short Term)
5.8 A detailed modelling exercise may be undertaken which would simulate the
emissions trajectory, required reduction with respect to various steel sub-
sectors and consequently identify technologies required. As an example,
for a given level of steel production of 100 Million Tons, (hot metal, DRI
and scrap quantities used for production of steel), it is appropriate to
work out the fractional feeds for production of 1 ton of crude steel. It is
necessary to allocate a sectoral emission value to hot metal production
(say, 1.7 tCO2/tHM with partial sequestration) and DRI (say 1.5tCO2/t DRI).
DRI production would involve EAF use and a consequential emission of
0.28t CO2/t DRI (450kWh/t steel and 0.8 kg CO2/kWh). For a HM: DRI:
scrap ratio of 0.5: 0.25:0.25, the net sectoral emission attributable is
1.48 t CO2/t steel assuming energy intensity of 350 kWh/t steel for scrap
re-melting. Once the target requirements are pre-fixed, it may be necessary 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
25
to enlist the technologies to be sought under collaboration for achieving
the targets for HM production emission and DRI production emission.
Subsequently, integration with carbon based smelting processes can be
planned. (NITI Aayog/Ministry of Steel, Short Term) ANNEXURE I
26
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Abbreviations used in the report
APPC Average Power Purchase Cost
AUSC Advanced Ultra Supercritical
BAT Best Available Technologies
BEE Bureau of Energy Efficiency
BF Blast Furnace
BIS Bureau of Industrial Standards
CC Composite Cement
CCS Carbon Capture and Storage
CCU Carbon Capture and Utilization
CD Contract Demand
CDQ Coke Dry Quenching
CRNO Cold Rolled Non-Oriented
DAE Department of Atomic Energy
DISCOM Distribution Company
DPIIT Department for Promotion of Industry and Internal Trade
DRI Direct Reduced Iron
DSIR Department of Scientific and Industrial Research
DST Department of Science and Technology
EV Electric Vehicles
GGBF Ground Granulated Blast Furnace Slag
GHG Greenhouse Gas
GSI Geological Survey of India
GTAM Green Term Ahead Market Annexure I
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
27
ISTS Inter-State Transmission System
MNRE Ministry of New and Renewable Energy
MOE Molten Oxide Electrolysis
MoEF&CC Ministry of Environment, Forest and Climate Change
MoHUA Ministry of Housing and Urban Affairs
MoP Ministry of Power
MSME Micro, Small and Medium Enterprises
MSW Municipal Solid Waste
MSW Municipal Solid Waste
NEDO New Energy ad Industrial Technology Development Organisation
NG Natural Gas
OAC Over-arching Committee
OPC Ordinary Portland Cement
PAT Perform Achieve Trade
PPC Portland Pozzolana Cement
PSC Portland Slag Cement
RDF Refuse Derived Fuel
RE Renewable Energy
REC Renewable Energy Certificate
RPO Renewable Purchase Obligation
RTC Round the Clock
SCEP Strategic Clean Energy Partnership
SEB State Electricity Board
SG Sustainable Growth
TOD Time of Day
TRT Top-pressure Recovery Turbine
ULB Urban Local Body
WGD Waste Generation Database
WHR Waste Heat Recovery ANNEXURE II
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
28 Annexure II
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
29 Annexure IIReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
30 NOTES
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........................................................................................................................................................................................................................ www.niti.gov.in
Under SeuS snSta nriblalG nrlowS
hePPl nnSeaSfeIShor-eaSgncsaeweClnGS
Under Sustainable Growth Pillar of India-US Strategic
Clean Energy Partnership
Under SeuS snSta nriblalG nrlowS
hePPl nnSeaSfeIShor-eaSgncsaeweClnGS
Under Sustainable Growth Pillar of India-US Strategic
Clean Energy Partnership Sl. No.Name and designationPosition
1. Sh. Neeraj Sinha, Sr Adviser (S&T), NITI Aayog Chairman
2. Ms. Rasika Chaube, Additional Secretary, Ministry
of Steel
Member
3. Sh. Sudhendu Jyoti Sinha, Adviser (Transport),
NITI Aayog
Member
4. Sh. BP Pati, Joint Secretary, Ministry of Coal Member
5. Sh. BN Mohapatra, Director General, National
Council for Cement and Building Material
Member
6. Dr Ashok Kumar, DDG, Bureau of Energy
Efficiency
Member
7. Representative from the Department of Heavy
Industries
Member
8. Sh. Nirvik Banerjee, ED, Steel Authority of India
Limited
Member
9. Sh. Ashok Kumar Rajput, Chief Engineer (RT&I),
Central Electricity Authority
Member
10.Sh. Rajib Kumar Paul, Director, National Institute
of Secondary Steel Technology
Member
11.Sh. Anil Kumar, Scientist D, Ministry of New and
Renewable Energy
Member
12.Dr Ajay Arora, GM (Fuels), R&D Centre, Indian Oil
Corporation Limited
Member
COMPOSITION OF
THE INTER-MINISTERIAL
COMMITTEE
iii
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership 13.Sh. Prabodh Acharya, Chief Sustainability Officer,
Jindal Steel
Member
14.Sh. SAurabh Kundu, Chief Process Research,
TATA Steel
Member
15.Sh. Prashant K Banerjee, Executive Director
(Technical), Society of Indian Automobile
Manufacturers
Member
16.Sh. Priyavrat Bhati, CSTEPMember
17.Sh. Raju Goyal, Chief Technical Officer, UltraTech
Cement Ltd
Member
18.Sh. Ashwani Pahuja, Chief Sustainability Officer,
Dalmia Cement (Bharat) Ltd
Member
19.Sh. Philip Mathew, Holcim, Head – Cement
Manufacturing Excellence Asia
Member
20. Prof Prodip Sen, IIT KharagpurMember
21.Ms Apurva Chaturvedi, Sr Clean Energy Specialist,
USAID
Member
22. Ms. Sha Yu, Senior Scientist, Pacific Northwest
National Laboratory (PNNL)
Member
23. Mr David Palchak, Group Manager, National
Renewable Energy Laboratory
Member
24. Mr Nikit Abhyankar, Scientist, Lawrence Berkely
National Laboratory
Member
25. Sh. Manoj Kumar Upadhyay, Deputy Adviser
(Energy), NITI Aayog
Member Convener
Composition of the Inter-Ministerial CommitteeReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
iv
iv
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership v
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
FOREWORD CONTENTS Composition of the Inter-Ministerial Committee iii
Foreword v
About the Sustainable Growth Pillar under the
India-US Strategic Clean Energy Partnership 1
1. Introduction 2
2. Decarbonization of Industries 3
3. Technologies Enabling Decarbonization - Example of
Waste Heat Recovery 6
4. Decarbonization of Cement Industry 8
5. Decarbonization Options for Steel Industry 17
The Way Forward 18
6. Annexure I 26
7. Annexure II 28 ABOUT THE SUSTAINABLE
GROWTH PILLAR UNDER THE
INDIA-US STRATEGIC CLEAN
ENERGY PARTNERSHIP
1
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
The long history of energy cooperation between the United States and India have
powered lives and livelihoods. On the margins of the April 2021 Leaders Summit
on Climate, President Biden and Prime Minister Modi announced the launch of
a new bilateral partnership to advance shared climate and clean energy goals.
The U.S.-India Climate and Clean Energy Agenda 2030 Partnership includes the
Strategic Clean Energy Partnership (SCEP) which was earlier established as the
Strategic Energy Partnership in 2018 and had replaced the U.S.-India Energy
Dialogue, the previous intergovernmental engagement for energy cooperation.
The revitalized SCEP will continue to advance energy security and innovation
with greater emphasis on electrification and decarbonization of processes and
end uses, scaling up emerging clean energy technologies, while finding solutions
for hard-to-decarbonize sectors. Engagement with the private sector and other
stakeholders will remain a priority.
The Sustainable Growth (SG) Pillar under the U.S.-India Strategic Clean Energy
Partnership takes a broader role in advancing low-carbon development and
improving inclusive and sustainable economic growth through climate responsive
strategies, long-term plans, and energy data management. India is well on its way
to leverage its expanding and diverse economy, capitalize on its demographic
dividend and benefit from its rapid urbanization. The country’s growth could be
further enhanced with addressing energy issues along with ensuring financial and
environmental sustainability as a climate responsible country. India is prioritizing
strategies which could improve energy security, reliability, and affordability,
universal energy access, and resiliency of energy systems to cyber-attacks and
extreme weather events. As part of the agenda of the Pillar for 2021-22, three
committees were formed on important issues of energy data management, low
carbon technologies and just transition from coal. 1. INTRODUCTION
2Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
1.1 The challenge of climate change has created an urgent requirement to adopt
clean and environment friendly technologies. Goal 9 of the Sustainable
Development Goals has increased resource use efficiency and greater
adoption of clean technologies and industrial processes as one of its targets.
Industry emits about 28% of global greenhouse gas (GHG) emissions of
which 90% are carbon dioxide emissions.
1.2 In the Indian context industries contribute approximately one-fourth of
India’s total GHG emissions. Within industry half of the emissions are from
iron and steel and cement sector – either through energy use or industry
process emissions. In order to meet the targets aimed at addressing climate
change there is a need for addressing hard to abate sectors. 2. DECARBONIZATION
OF INDUSTRIES
3Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
2.1 Some of the challenges faced in decarbonization of industries are as follows:
1. The processing of feedstocks generates about 45 percent of CO2
emissions in the focus sectors. These emissions can only be reduced
by changing feedstock’s or processes, rather than changing to low-
carbon energy sources.
2. Sectors such as steel and cement have a large demand for high-
temperature heat (in the focus sectors the high temperature heat demand
ranges from 700 °C to over 1,600 °C which generates 35 percent of CO2
emissions). To replace the fossil fuel for heat generation with electricity
or hydrogen requires a significant change in the production process and
development of alternative furnace designs. Up to ~1,000 °C, adaptation
and scale up of electric furnace technology is needed. For temperatures
above ~1,000 °C, such as required for cement production, research is
required to develop industrial-scale electric furnaces.
3. Steel is traded globally (cement is not). Companies or countries that
increase their costs of production by adopting low-carbon processes
and technologies will find themselves at a cost disadvantage to industrial
producers that do not.
4. The products made from the steel or iron industry are basically
commodities for which cost is the decisive consideration in purchasing
decisions. Companies in the these sectors therefore compete mainly on
price, so implementing decarbonization options that increase the cost
of production will put them at a disadvantage.
2.2 Industrial companies can reduce CO2 emissions in various ways, with the
optimum local mix depending on the availability of biomass, carbon-storage
capacity and low-cost zero-carbon electricity and hydrogen, as well as
projected changes in production capacity. 2. Decarbonization of Industries Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
4
2.3 There exist the following decarbonization options for industries:
1. Demand-side measures: Decreasing the demand for an industrial
product should lead to lower production and CO2 emissions. For
example, light-weighting can reduce the demand for steel, and cement
could be replaced by materials such as wood. In addition, increasing the
circularity of products, e.g., by increasing recycling or reuse of plastics
and steel, would lessen CO2 emissions by reducing the production of
virgin materials.
2. Energy-efficiency improvements: Increases in energy efficiency can
economically cut fuel consumption for energy use by 20 to 40 percent
across sectors. Potential gains in energy efficiency will differ between
sectors and facilities. Using less fossil energy to make industrial products
will lower CO2 emissions.
3. Electrification of heat: Emissions from the use of fossil fuels to
generate heat can be abated by switching to furnaces, boilers, and
heat pumps that run on zero-carbon electricity. Electrifying heat can
involve a change in the production processes. For example, to electrify
ethylene production, companies need to install both electric furnaces
and electrically driven compressors.
4. Hydrogen usage: Emissions from the consumption of fossil fuel for
heat and emissions from certain feedstocks can be abated by changing
them for zero-carbon hydrogen. Hydrogen is generated by using zero-
carbon electricity for the electrolysis of water. For example, ammonia
production can be decarbonized by replacing the natural gas feedstock
with zero-carbon hydrogen.
5. Biomass usage: Like hydrogen, sustainably produced biomass can be
used in place of some fuels and feedstocks. Depending on the fuel or
feedstock required, biomass in a solid (wood, charcoal), liquid (biodiesel,
bioethanol), or gaseous (biogas) form can be used. For example, steel
producers in Brazil use charcoal as a fuel and feedstock instead of coal,
and chemical producers in several European countries experiment with
bionaphtha in chemicals production.
6. Carbon capture: With carbon-capture technology, CO2 can be collected
from the exhaust gases produced by an industrial process and prevented
from entering the atmosphere. The CO2 can be stored underground
(CCS) or used as a feedstock in other processes through carbon capture
and usage (CCU). 2. Decarbonization of Industries Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
5
7. Advanced Ultra Supercritical Technology
a. On being sanctioned by the Government of India, the implementation
of an R&D project for the development of the Advanced Ultra
Supercritical (AUSC) technology for thermal power generation –
jointly by a Consortium of the Indira Gandhi Centre for Atomic
Research (IGCAR), Department of Atomic Energy (DAE), Kalpakkam;
the Bharat Heavy Electrical Limited (BHEL) and the NTPC Limited –
had commenced on the 1st of April, 2017 and has ended successfully
on the 31st of December, 2020. The entire implementation of that
project was, very proactively, led by a Mission Directorate set-up
by the Department of Heavy Industry (DHI), Government of India,
in Noida, Uttar Pradesh. A high-level committee – called the Over-
arching Committee (OAC) – has contributed significantly in guiding
the said project to its successful completion. The OAC was chaired
by the Principal Scientific Adviser to the Government of India, with
the members being the Member (S&T), NITI Aayog; the Secretary,
DAE; the Secretary, Ministry of Power; the Secretary, DHI and the
Secretary, Department of Expenditure. The AUSC Mission Director
was the Member-Secretary to that Committee.
b. The successful completion of the project was despite the challenges
faced by the Consortium in the completion of the indigenous design
of the steam turbine (viz. the rotor and the casing) of the AUSC
project. That design, incidentally, is a global first, along with
several other such global firsts.
c. Based on the successful R&D work already done, the Consortium,
with the support of the Government of India, is planning to set-up
the world’s 1st AUSC thermal power plant, of 800 MWe capacity,
in Sipat, Chhattisgarh.
8. Other innovations: Besides the decarbonization options listed above,
other techniques for carrying out industrial processes could lead to CO2
emission reductions. For example, alternatives to limestone feedstock
could reduce process emissions in cement production. High-temperature
chemical processes can also be replaced by electrochemical processes,
in which electricity, rather than heat, drives reduction and oxidation
reactions. CO2 to methanol and Molten Carbonate Fuel Cell as a CO2
concentrator while generating power can also be examined as options
for decarbonization. 3. TECHNOLOGIES ENABLING
DECARBONIZATION -
EXAMPLE OF WASTE
HEAT RECOVERY
6Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
3.1 One of the prime measures to decarbonize industries, especially steel and
cement is to improve efficiency of the overall process. In this regard, Waste
Heat constitutes a substantial amount of energy in many core sectors
such as iron and steel, cement and power plants. Waste Heat Recovery
(WHR) is a method of recycling and re-using the heat that is escaping the
industrial processes after useful work is accomplished. The Government is
promoting energy conservation under the ambit of Electricity Conservation
Act. In order to support efforts towards a sustainable growth of economy,
reuse of waste heat generated by industries for electricity generation has
tremendous potential. It is estimated that 20-50% of input energy is lost
into the environment in the form of hot gases, hot air, hot water, etc, due to
process inefficiencies and technical limitations. These energy losses cannot
be recovered fully but may be reduced partially by improving efficiency of
processes/equipment as well as by deploying Waste Heat Recovery (WHR)
Systems.
3.2 US support is required in development and deployment of industrial
processes powered by electricity produced from clean energy sources as
a vital pathway in achieving decarbonization across the industries.
3.3 Substantial amount i.e. 20% to 50% of energy input being used by industry
is wasted as heat into environment in form of exhaust gases, waste streams
of air and liquids leaving industrial facilities. The industrial sector accounts
for about 45% of total electricity being consumed in India. Even considering
30% of this energy input being wasted by industry accounts to 160 billion
KWh annually or equivalent to 20000 MW of coal based power generation
capacity. This huge amount of waste heat is caused due to equipment
inefficiencies and thermodynamic limitations of the equipment/processes.
Hence industrial facilities can reduce these losses by installing Waste Heat
Power systems to improve overall equipment/process energy efficiency.
Therefore waste heat power (WHP) generation will reduce the energy
consumption per unit of production for Indian industries. Also WHP will 3. Technologies Enabling Decarbonization - Example of Waste Heat RecoveryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
7
result in savings of fossil fuels like Diesel/high grade coal/furnace oil, etc.
mainly used for captive power generation and thereby reducing nation’s
GHG emissions.
3.4 Waste heat in the industry is generated during fuel combustion or chemical
reactions, and can be utilised in Waste Heat Recovery (WHR) boilers to
generate steam. The increasing use of WHR systems in industries such
as refineries, paper and pulp, cement, heavy metals, petrochemicals and
chemicals for preheating, steam generation and power generation purposes
is expected to drive market growth in the coming years.
3.5 Benefits of WHP are the following:
1. Installation of waste heat power systems for captive power generation
can cater up to 20-40% of power consumption for a given industry and
electricity generated from waste heat power can displace power from
sources that generate emissions i.e. coal based thermal power plants.
2. Waste heat power plant reduces its consumer’s reliance on fossil fuel
based power generation.
3. Generation of electricity from WHP does not add any carbon dioxide
or heat in the atmosphere. Emission/temperature levels remains almost
same even with increased generation capacity of electricity without
using fossil fuels. 4. DECARBONIZATION OF
CEMENT INDUSTRY
8Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
4.1 Cement manufacturing releases CO2 through two main activities: energy
use and calcination reactions. Energy-related emissions (30–40% of direct
CO2 emissions) occur when thermal fuels, most commonly coal, are used
to heat a precalciner and rotary kiln. The other primary source of direct
CO2 emissions (“process emissions”) come from a chemical reaction that
takes place in the precalciner, where limestone (largely calcite and aragonite,
with chemical formula CaCO3) is broken down into lime (CaO) and carbon
dioxide (CO2). The CO2 is released to the atmosphere, while the lime is
used to make clinker, one of the main components of cement.
4.2 Cement production has substantial environmental impacts. Globally, cement
and concrete are responsible for 8–9% of GHG emissions, 2–3% of energy
demand, and 9% of industrial water withdrawals. Further, the selection
of fuels for cement kilns, and in part the kiln materials used, currently
lead to notable air pollutant emissions. It is critical to select mitigation
strategies that can contribute to reduced CO2 emissions while lowering
other environmental burdens. This is especially true considering the high
near-term projected future demand for cement. These factors must be
taken into consideration when evaluating strategies to decarbonize cement
production, one of the most difficult industries to decarbonize, due to the
need for high temperatures, the generation of CO2 process emissions, and
the large quantity of cement demanded globally.
4.3 To reduce energy-related emissions from cement (e.g. from the fuel used to
heat the precalciner and kiln), the main options are improving the thermal
efficiency of cement-making equipment, fuel switching, electrification of
cement kilns, and carbon capture and sequestration (CCS).
4.4 Reducing the moisture content of input materials improves energy efficiency,
as less energy is needed to evaporate water. This can be achieved by using
a dry-process kiln and ensuring the kiln has a precalciner and multi-stage
preheater. Recovered heat can be used to pre-dry input materials. A grate 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
9
clinker cooler is better at recovering excess heat than planetary or rotary-
style coolers. The extent to which these upgrades can reduce energy use
depends on the age and efficiency of the technology already in use. Most
modern kilns incorporate this processing stage, which is reflected in the
high-producing regions that recently expanded cement production capacity.
4.5 Certain mineral compositions can lower the temperature at which input
materials are chemically transformed into clinker, and less fuel is needed
to reach a lower temperature. However, some of these alternatives can
alter cement performance, so testing and certification of alternative cement
chemistries will be important. Another approach is to react fuel with oxygen-
enriched air, so less heat is lost in the exhaust gases. Oxy-combustion also
has the benefit of reducing the concentration of non-CO2 gases in the
exhaust stream, making carbon capture easier.
4.6 Today, 70% of global thermal fuel demand in the cement industry is met
with coal, and another 24% is met with oil and natural gas. Biomass and
waste fuels account for the last 6%. Biomass and waste fuels typically have
lower CO2-intensity than coal, though they may have other drawbacks, such
as a higher concentration of particulates in the exhaust.
4.7 To completely decarbonize heat production for cement, electrification of
cement kilns or CCS may be necessary. The best route may vary by cement
plant, as it will be influenced by the price and availability of zero-carbon
electricity, as well as the feasibility of carbon capture and storage at the
plant site. Due to the ability for hydrated cement to carbonate, and in doing
so uptake CO2, some work has started to quantify potential carbon capture
and storage through using crushed concrete and fines at the end-of-life.
Table 1
Challenges
Cement manufacturing is
Hard to Abate Sector
Process emissions : 50 – 55 % of the CO2
emissions attributable to process (de-carbonation
of limestone) where mitigation is only possible
through CCU
Combustion of fossil fuels : 30 – 35 % emissions
attributable to thermal energy needed in pyro-
processing
Emissions related to electricity use : 8 – 10 % of
total CO2 emissions
Onsite vehicular and equipment emissions : 2 – 5%
from liquid fossil fuels consumption 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
10
Challenges
Decarbonization Roadmap for Cement Sector
Scope 1
Reducing Carbon Footprint
of Electrical Energy
Improving efficiency through energy efficient
equipment
Renewable & Waste Heat
Optimize Waste Heat Recovery System
Waste Heat Recovery generation may be granted
the status of Renewable Energy, which are
operating with actual waste heat available
Recovery power generation from chlorine bypass
system
Digitization and Industry 4.0
Reducing Carbon Footprint
of Thermal Energy
Improving heat efficiency through efficient pyro
technology
Innovation in Pyro-processing Technology
Alternative green fuels (including green hydrogen)
and Sustainable Biomass (Bamboo energy plant)
to switch fossil fuels
Artificial intelligence and Industry 4.0 in pyro-
processing
Heat Electrification from Renewable Power
Solar Calcination/Clinkerisation
New clinker systems
Enhancing use of
Supplementary Cementitious
Materials
Enhancing the use of Blended Cements from the
existing 73% to 100%, replacing Ordinary Portland
Cement (OPC) with Portland Pozzolana Cement
(PPC), Portland Slag Cement (PSC), Composite
Cement (CC).
Flyash based cements
Enhancing the fly ash % in from the existing BIS
limit of 35% to 40%.
GGBF Slag Cements
Limestone based cements
Calcined clay/Natural Pozzolana based cements
Multi-blend cements
Reducing Process Emissions
Carbon Capture and Utilisation
New Novel Cements with Low Carbon/No Carbon
raw material
Reducing Emissions from
On-site Vehicles and
Equipment
Electric, Plug-in Hybrid, Fuel Cells or Pure Battery 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
11
Challenges
Scope 2
Emissions reduction by use of Renewable Energy
Scope 3
Emissions reduction by :
Concrete recarbonation during product use
Use of electric vehicles in logistics operations
Offsetting business travel
Green procurements
4.8 Suggestions for faster industry transition:
1. Switching from fossil fuel to sustainable biomass such as Agro waste/
Bamboo etc. and target setting for compulsory use of biomass as
alternative fuel.
2. Transition to Industry 4.0.
3. Target setting for adaptation of efficient pyro-process technology and
monitoring mechanism for its effective implementation.
4. Transitioning to 100% renewable power (RE 100):
Policies regarding amendments should be done at central level
and should not be not State Specific in order to promote the RE
projects,
ISTS charges: Waiver of ISTS charges for Inter State Open Access
Wheeling (Impact of Rs. 0.5/unit),
Electricity Duty: Waiver of Electricity duty on Captive consumption
from Solar (Impact of Rs.0.10/unit to Rs.0.6/unit),
Scheduling and Settlement of Power: For Captive Wheeling,
Scheduling of power should be allowed on monthly TOD basis and
not in 15 minute time block basis,
Banking of power: Banking provision should be provided for captive
consumers wherein Yearly Banking of power should be allowed on
RTC(round the clock) basis and shall be allowed even for Inter State
transaction and Balance Power if any after the Financial Year shall
be Procured by DISCOM on APPC Rate,
Capacity Restriction: There should not be any Capacity restriction
based on Grid contract Demand on captive consumers for Installation
of Solar or other Renewable projects. 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
12
Contract Demand reduction: Grid Contract Demand reduction on
average basis equivalent to the RE capacity,
Cross Subsidy Surcharges: Cross subsidy surcharges should be
waived off for Intra and Inter State Open access transactions (Third
Party and GTAM) as an Incentive,
Additional Surcharges: Non applicability of Additional Surcharges
for GTAM, 3rd Party or Group captive Consumers (levied in
Maharashtra, KN, TN, GUJ),
Evacuation Facilities: Evacuation Facilities from RE Project to
Consumer premises should be provided by DISCOM for Intra State
Consumers,
Net Metering: Net Metering should be allowed with no restriction
on grid CD capacity,
REC: REC should not be restricted to one State. In case of group
units in different States, REC generated in one State should be
allowed to comply RPO of other States.
5. Wastes to Circularity Renewable biomass and waste to replace fossil
fuel use in cement kiln:
Facilitate availability of waste land for sustainable biomass plantation/
Carbon sink creation in wastelands of India (26 million Ha. announced,
97 million Ha. actual waste landmass in India). Bamboo planted in
wastelands can have huge potential for fossil fuel replacement in
a big way.
Introduce landfill tax/polluter to pay policy to promote circular
economy models of greater waste utilization
Create Waste Generation Database (WGD), controlled by a Central
Body) for wastes, both legacy and daily generation
Creation of Municipal Solid Waste (MSW) pre-processing facilities
by all Municipalities for converting MSW to Refuse Derived Fuel
(RDF)
Create Micro-level Government-Industry-Private Entity (G-I-P)
partnership enterprise to facilitate transfer of processed waste
material from Source (Industry [processed waste]/Private Entity
[waste processor]) to Consumer (Cement Industry) 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
13
6. External actions needed to support Carbon Capture and Utilization
(CCU) for industry transition:
Government grants/viability gap funding for innovative and
disruptive CCU projects
Cross sector and cross country collaborations – The cross sector
and cross country collaborations to tap advantages of each sector
for policy advocacy, technical know-how and disruptive incubations
Encouraging green labelling and green procurement policies
Facilitating carbon markets
7. Other Suggestions for faster industry transition
Incentives for heavy-transport electric mobility: Provide GST/Toll
Tax incentives to the heavy-transport sector
Charging infrastructure: Develop adequate fast charging
infrastructure, every 25 km target
Green Hydrogen for fuel cells and turbines: Build cost competitive
green hydrogen with vast RE resources
Global Carbon Markets Access: The access to global carbon markets
for Indian companies should be ensured
Showcase Indian Industry actions: Highlight the climate actions of
progressive industries in various international and national platforms
such as UN General Assembly, COP-26, Leadership Summit, etc.
Waste Heat Recovery: Waste Heat Recovery based power projects
should be given the status and incentives of renewable power
4.9 The Way Forward – Cement Sector
The measures suggested for transition to low carbon technologies in cement
sector are discussed in section 4.8. The suggested measures are further classified
in terms of short term and long-term measures as well as categorized in terms
of policy, incentives and technological interventions. For better coordination and
swift implementation of the interventions, the related nodal ministry/departments
are also highlighted. 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
14
1. Policy Interventions
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. For Captive Wheeling, Scheduling of
power should be allowed on monthly
TOD basis and not in 15 minute time
block basis
Ministry of Power Short Term
2. Banking provision should be provided
for captive consumers wherein Yearly
Banking of power should be allowed
on RTC (round the clock) basis and
shall be allowed even for Inter State
transaction and Balance Power if
any after the Financial Year shall be
Procured by DISCOM on APPC Rate,
Ministry of Power Short Term
3. No Capacity restriction, based on
Grid contract Demand on captive
consumers, for Installation of Solar or
other Renewable projects.
Ministry of Power/
SEBs
Short Term
4. Grid Contract Demand reduction on
average basis equivalent to the RE
capacity
Ministry of Power Short Term
5. Evacuation Facilities from RE Project
to Consumer premises should be
provided by DISCOM for Intra State
Consumers
Ministry of Power/
SEBs
Short Term
6. Net Metering should be allowed with
no restriction on grid CD capacity
Ministry of Power/
SEBs
Short Term
7. Renewable energy Consumption
should not be restricted to one State.
In case of group units in different
States, REC generated in one State
should be allowed to comply RPO of
other States.
Ministry of Power/
Ministry of New and
Renewable Energy
(MNRE)
Short Term
8. Facilitate availability of waste land for
sustainable biomass plantation/Carbon
sink creation in wastelands of India
Ministry of
Environment, Forest
and Climate Change
(MoEF&CC)
Short Term
9. Introduce landfill tax/polluter to pay
policy to promote circular economy
models of greater waste utilization
MoEF&CCShort Term
10.Renewable power status for Waste
Heat Recovery based power projects
MNREShort Term 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
15
2. Technological Interventions
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. Cross sector and cross country
collaborations to tap advantages
of each sector for policy advocacy,
technical know-how and disruptive
incubations
Niti Aayog Short Term
2. Build cost competitive Green
Hydrogen with vast RE resources
Ministry of New and
Renewable Energy
(MNRE)
Long Term
3. Development of technology on Solar
Thermal Calcination
MoP/DST/MNRE/
DPIIT
Long Term
4. Development of technology on
Electrification of Pyro-processing
DST/MoP/MNRE/
DPIIT
Long Term
5. Development of Low Cost Technology
on Carbon Capture and Utilization
DST/Department
of Scientific and
Industrial Research
(DSIR)
Long Term
6. Development of Technology for
Utilization of Green Hydrogen in
Pyro-processing
MoP/MNRELong Term
7. Knowledge Transfer for Transition to
Industry 4.0 for reduction in energy
consumption
Niti Aayog/DPIIT/
DST/DSIR
Short Term
3. Incentives Required
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
1. Waiver of Inter State Transmission Charges (ISTS) charges for Inter State Open Access Wheeling (Impact of Rs. 0.5/unit)
Ministry of Power Short Term
2.
Waiver of Electricity duty on Captive consumption from Solar (Impact of Rs.0.10/unit to Rs.0.6/unit)
Ministry of Power Short Term
3. Waiver of Cross subsidy surcharges
for Intra and Inter State Open access transactions (Third Party and GTAM)
Ministry of Power Short Term
4. Non applicability of Additional Surcharges for GTAM, 3rd Party or Group captive Consumers (levied in Maharashtra, KN, TN, GUJ),
Ministry of Power/SEBs
Short Term 4. Decarbonization of Cement IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
16
Sl. No. Suggested Measures
Nodal Ministry/
Department
Timeline
5. Create Waste Generation Database
(WGD), controlled by a Central Body)
for wastes, both legacy and daily
generation
MoEF&CCShort Term
6. Creation of Municipal Solid Waste
(MSW) pre-processing facilities by all
Municipalities for converting MSW to
Refuse Derived Fuel (RDF)
MoEF&CCShort Term
7. Develop an ecosystem to promote
the use of Alternative fuels and raw
materials and incentivize the industry
for maximizing the usage.
MoHUAShort Term
8. Create Micro-level Government-
Industry-Private Entity (G-I-P)
partnership enterprise for enhancing
utilization of Alternate fuels and raw
materials
MoHUA/ULBs Short Term
9. Government grants/viability gap
funding for innovative and disruptive
CCU projects
Niti Aayog Short Term
10.Encouraging green labelling and green
procurement policies
Ministry of Consumer
Affairs
Short Term
11.Facilitating carbon markets MoEF&CCShort Term
12.Provide GST/Toll Tax incentives to the
heavy-transport sector
Ministry of Finance/
Ministry of Road,
Transport &
Highways
Short Term
13.Develop adequate fast charging
infrastructure for electric vehicles,
every 25 km target
Ministry of Road,
Transport &
Highways
Short Term
14.Ensuring Global Carbon Markets
Access for Indian companies
Niti Aayog/MoEF&CC Short Term
15.Showcasing Indian Industry actions to
highlight the climate actions in various
international and national platforms
Niti Aayog/Ministry
of External Affairs
Short Term 5. DECARBONIZATION
OPTIONS FOR STEEL
INDUSTRY
17Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
5.1 India is the world’s 2nd largest steel producing country, producing more
than 100 MTPA and the National Steel Policy anticipates that a crude steel
capacity of 300 MTPA will be required by 2030-31 to cater to the projected
demand. Steel is also a key component of India’s energy system. In addition
to being an important input to much of its energy infrastructure, the sector
itself is a major energy consumer. The iron and steel sector are responsible
for around one-fifth of industrial energy consumption in India, with coal
accounting for 85% of its roughly 70 Mtoe of total energy inputs
1
. As a
result, the sector is highly emissions intensive, contributing almost a third
of direct industrial CO2 emissions, or 10% of the country’s total energy
system CO2 emissions. Therefore, a significant fraction of global efforts of
low carbon steelmaking are to be driven by Indian steel industry.
5.2 Technologically, steel industry in India is quite heterogeneous with several
process and input material combination and a wide range of different sized
facilities in primary and secondary sectors. With advanced technologies,
and under the right circumstances, the Indian steel industry could achieve
a transformation in the way it makes steel and reduce its environmental
impact. The Indian steel industry should plan to reduce its direct and
indirect CO2 emission by 60 % by 2050 in comparison to 2019-20 levels
to be in trajectory for net zero by 2070
2
. However, this change cannot be
an instantaneous shift. The key potential deep decarbonization technologies
are not yet techno-commercially feasible and hence, emissions reductions
till 2030 are expected through series of levers like improvement of process
and energy efficiency, energy transition to renewable sources, usage of
alternative fuel sources, ensuring the use of improved raw material quality,
and enhancing material circularity, etc. Thus, Decarbonization is required to
be done in phases:
1 IEA Roadmap for Iron and Steel Sector – Chapter 3
2 IEA Roadmap for Iron and Steel Sector 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
18
Phase 1 – (2022-2030): Emission Reductions in short term
Phase 2 – (2031-2050): Deep Decarbonisation technologies in the
medium to long term.
Phase 3 – (2050-2070): Offsetting and other interventions post 2050
towards net-zero.
The Way Forward
Phase 1 – Emission Reductions in Short term till 2030
5.3 The technologies required for emission cuts in the short term are not the
low-cost ones (like replacement of conventional lighting with LED or use
of Variable Voltage Variable Frequency drives along with high efficiency
motors), but the high cost ones, most of which are related to energy
efficiency and need a hand-holding by the GoI for its implementation.
5.4 Steel-producing fleet in India is only a little more than one third of the way
through its typical lifetime, which is around 40 years on average for these
assets. Many more blast furnaces and DRI furnaces will need to be built in
India before alternative near-zero emission routes are ready to enter the
market, and the country is projected to have a comparatively young fleet
in 2030. Therefore, in the near term it is crucial to maximise operational
efficiency in existing assets and to minimise additional emissions from new
infrastructure by investing in the BAT for commercial production routes until
near-zero emission alternatives reach market introduction.
Key Levers Feasibility and Recommendations
1. Monitoring
and
Assessment
The beginning of Phase – I of the Decarbonisation will require data
collection to categorise Iron and Steel Plants based on
Process
Extent of integration
Combination of processes.
Most of the MSME steel plants have a coal based DRI and Induction
Furnaces which has a much higher rate of CO2 per ton of steel
produced than Integrated ones. Thus, it becomes important to create
a centralized monitoring mechanism to step up the efficiency of
these MSME steel sector.
It is recommended to set up Energy Monitoring Cell to monitor
energy efficiency and CO2 emissions of MSME steel sector. (Ministry
of Steel and Bureau of Energy Efficiency, Long term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
19
Key Levers Feasibility and Recommendations
2. Energy and
Process
Efficiency
through im
plementation
of Best
Available
Technologies
(BAT)
Around 40% of blast furnaces in India are currently equipped with
top-pressure recovery turbines (TRTs), and more than 30% of coke
ovens are equipped with coke dry quenching (CDQ), two examples
of BAT. Both these shares should rise to around 70% by 2030
<?>
.
These and other measures like waste heat recovery systems, smelting
reduction technologies, CONARC technology etc. including those that
optimise operational efficiency, considerably improve performance.
Perform, Achieve and Trade (PAT) scheme by GoI was one such
measure which is driving the energy efficiency in steel plants. Conscious
early discontinuation or interim underutilisation of some obsolete
steel plant units is already taking place because of introduction of
Perform Achieve and Trade (PAT) Mechanism by Bureau of Energy
Efficiency (BEE) that makes them uneconomic. In spite of this, in
some plants, due to lack of space and logistics, retrofitting of energy
efficient equipment like coke dry quenching plant, blast furnace top
gas pressure recovery turbines, torpedo ladles, waste heat recovery
systems, hot charging in re-heating furnaces, walking-beam type
reheating furnaces etc. becomes non-viable.
It is recommended to prepare road map for covering the viability
gap in introducing such modern technologies in old plants. (Ministry
of Steel, Short Term)
It is also recommended that schemes like Japan’s deployment of
industrial energy and environmental technologies through New
Energy and Industrial Technology Development Organisation
(NEDO), may be deployed for utilization by needy plants. (Ministry
of Power, Long Term)
3. Demand
reduction
through
Material
Efficiency
This involves various sectors at different stages along the steel value
chain starting from transportation sector, buildings, automotive,
improving yields during manufacturing etc. With the use of Advanced
high strength steels in the value chain, the amount of material
consumed can be reduced there by increasing the material efficiency.
For example, it is proven that the use of Advanced High Strength
Steels (AHSS) can reduce total vehicle weight by 8-10% compared
to conventional steel which corresponds to a lifetime saving of
2-3 tonnes of greenhouse gases over the vehicle’s total life cycle
<?>
.
GoI has set ambitious target for electric mobility. The expansion of
the Electric Vehicles (EV) market is estimated to drive the demand
for EV component materials such as high-quality Cold Rolled Non-
Oriented (CRNO) electrical steel, which improves energy efficiency
by reducing power losses in several applications.
It is recommended to create a market and incentivise indigenous
manufacturing of such value added high quality and high strength
steel to help in reduction of carbon footprint. (Ministry of Steel,
Short Term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
20
Key Levers Feasibility and Recommendations
4. Reduction
in Coke rate
using High
Iron bearing
raw material
As the demand for steel increases to 255 MT in 2030-31, the demand
for iron ore is expected to be 437 MT by 2030
<?>
. With the rapid
depletion of natural resources, it will be difficult to receive high
grade iron ore in the future. Iron ore pellets are largely characterized
by inherent physical and chemical properties of the ore. Alumina
and silica play important roles in determining the productivity of
a Blast Furnace. This will have a significant impact on the energy
consumption and emission intensity of the steel production process
by affecting the productivity of a Blast Furnace.
It is recommended to promote advanced beneficiation of iron ore
and production of high grade pellets for BF feed to minimize coke
consumption. (Ministry of Steel, Long Term)
5. Energy
Transition
Scope 2 emissions of Indian steel industry stands at 75 Million tonnes
of CO2 for 111 MT of steel production in 2019-20. This amounts to
0.68tCO2/tcs of indirect emissions in steel industry
<?>
. An alternative
approach to using grid electricity is to harness Renewable Energy and
possibly directly in captive installation. Usage of renewable energy
during manufacturing process reduces these indirect emissions
there by reducing the total emission intensity significantly. Moreover,
increased usage of renewable energy is very important to decarbonize
the steel sector through production of electrolytic hydrogen which
is currently in the R&D stages, targeting to produce green hydrogen
economically and also eventually scaling up for industrial levels.
Recommendations provided under Section 4.8 of cement sector.
6. Increased
utilization of
Scrap
Steel plants, mostly integrated ones which produce steel from Iron
ore account for 75% of Global steel production, but emit almost 90%
of CO2 emissions due to their high CO2 intensity of 2.3 ton CO2 per
ton of steel produced. In contrast, Minimills, whose primary feedstock
is recycled steel scrap, account for the balance 25% of the global
steel production, but only 10% of emissions since they emit 0.6 ton of
CO2/per ton of steel produced. Every tonne of scrap used for steel
production avoids the emission of about 1.5 t of CO2, consumption
of natural resources of about 1.4 t of iron ore, 740 kg of coal and 120
kg of limestone, energy consumption by around 2½ Gcal and water
consumption by around 40 %. Such scrap based Steel units have the
potential to eliminate emissions by using renewable electric power.
However, ferrous scrap is not available due to the long service life
of steel products, given steel’s strength and durability. India, as a
developing economy, with very low apparent finished steel use per
capita of 64 kg, has limited amounts of domestic scrap to use as
a material in steelmaking. Most of the scrap supply in India today
happens through unorganised sector. At present, around 7 MT of
scrap being imported, provides a potential to harness this from the
domestic market itself. This shall require adequate collection centres, 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
21
Key Levers Feasibility and Recommendations
dismantling centres which shall work in a hub-spoke model and feed
to the scrap processing centres. To produce 7 MT more of scrap,
the country shall require 70 scrap processing centres each with
the capacity of 1 lakh tonnes; this is without disturbing the existing
dismantling centres. The 70 scrap processing centres shall require
about 300 collections and dismantling centres on the presumption
that 4 collecting and dismantling centres cater to scrap processing
centre. In 2030, at a requirement of > 70MT of scrap, India require
about 700 scrap processing centres, that is 700 shredders. These
shall in turn be fed by 2800-3000 collections and dismantling centres
spread all over the country
<?>
. Through National Resource Efficiency
Policy (draft), Government of India is aiming to reduce the import
of steel scrap to zero by 2030. Motor Vehicles (Registration and
Functions of Vehicle Scrapping Facility) Rules, 2021 is a significant
step in this direction.
It is recommended to facilitate and promote metal scrapping
centres to ensure scientific processing & recycling of ferrous scrap
generated from various sources & from a variety of products along
with assurance of availability of ‘quality’ and sized scrap at a price
below the cost of hot metal by subsidising scrap recycling industry.
(Ministry of Steel, Long Term)
7. Demand
Pull for low
carbon steel
Since steel is used in large quantities in infrastructure and construction
projects, their cost is a critical factor for overall project costs. Unlike
energy efficiency or captive renewable energy generation, currently
there is no business case from the consumer side towards this end;
the primary demand-side issue is that there is no actual prevailing
demand for low carbon steel products in the market; i.e, indication
on the part of consumers about their willingness to bear part of the
burden of additional cost to be incurred for transition towards low-
carbon steel. The weak demand can broadly be attributed to two
factors: lack of drivers to change consumer preferences and lack
of awareness. At present, consumers are largely driven by the cost
factor and are choosing the better-known and lower priced product.
It is recommended that the Preferential Public Procurement be
mandated that the government-funded construction projects source
at least a portion of their steel from low-carbon-emitting producers.
(Ministry of Steel, Short Term)
It is recommended to introduce standards for Green Steel
(e.g., GreenPro); establishing Buyer Clubs, etc. Introduction of
“Green Steel Inside” sticker. Consumers will probably have to pay
a bit more for green steel products - at least at first. Because steel
constitutes just a small portion of most products of which it’s a
component, that price premium is likely to be small. (Ministry of
Steel, Short Term) 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
22
Key Levers Feasibility and Recommendations
8. R&D
Collaborations
Promoting research and development including demonstration
projects in line with the support being extended by the government
in various countries for climate change may boost the transition.
It is recommended to evaluate and analyse all available technologies
worldwide, Indigenisation and CAPEX requirement for short term
and medium term (Phase 1 and 2) reduction of GHG emission.
(Ministry of Environment, Forest & Climate Change, Short Term)
Create a dedicated research and development fund, jointly funded
by the government and industry, aimed at achieving technological
breakthroughs and improving the commercial viability of
technologies. (Ministry of Steel, Short Term)
9. Access to
Finance and
Capital
This transition will require significant access to capital.
It is recommended to consider setting up a National Decarbonisation
Fund to finance the transition of Indian industry to a low carbon
economy. The public policy framework and regulations also needs
to help facilitate Indian companies to access international capital
for a financially feasible transition. (Ministry of Environment, Forest
& Climate Change, Short Term)
Phase 2 – (2031-2050): Deep Decarbonisation technologies in the medium to
long term.
5.5 For further emissions cuts, efficient energy use must be combined with
alternative technologies such as replacement with low-carbon fuel (hydrogen
direct reduction) or Carbon Capture Use and Storage (CCUS). The steel
sector is willing to undergo the required transformation, but this cannot
be done in isolation.
Technology Feasibility and Recommendations
1. Carbon
Capture
Usage/
Storage
(CCUS)
BF route Iron making process will always require coke (300-450 kg/ton
of Hot metal) with attendant CO2 emissions. So the process requires
capturing and sequestering all their CO2 emissions with Concomitant
CAPEX and OPEX implications. Here Cryogenic Oxygen plant
equipment supplier can be roped in to separate CO2. This is a normal
process in an Oxygen Plant installed in most Steel Plants.
Carbon capture and usage (CCU) concept includes converting steel
off-gases to fuels and chemicals. In reference to India’s iron and
steel sector, this becomes important as National Bio-Fuel Policy 2018
emphasizes on the production of Bioethanol/sustainable advanced
fuels using alternate options. As most of the off gases are rich in CO,
CO2 and Hydrogen, these become the obvious choice for producing
such chemicals and minimizing emissions considerably. There is a
company (now US based) LanzaTech who has a microbe based
process (fermentation) which captures carbon-rich waste gases from
the steelmaking process and converts them into sustainable fuels and
chemicals like Ethanol and 2, 3-Butanediol. 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
23
Technology Feasibility and Recommendations
It is recommended that Steel Companies evaluate this technology
and be provided with fiscal incentives/direct subsidies for the early
adopters. (Ministry of Steel, Short Term)
The principal long-term CO2 management options – alongside CO2
direct avoidance technologies – are either permanent geological
storage (CCS), or CCU for products that do not release CO2
emissions (are not oxidised) during use or at end-of-life. The latter
may include closed carbon cycles in which the CO2 in products
produced via CCU are recycled back into the system, such as plastics
being gasified and used as fuel in steel plants that then produce
plastics through CCU.
To move forward with CCS in India, it is recommended to conduct
a nationwide assessment of potential storage locations, ideally
undertaken by the Geological Survey of India (GSI), before
its potential can be understood. Such a study would provide
an understanding of the total potential and the relative costs of
developing those storage resources. This is vital to understand the
costs of CCU networks, which are impacted by the length of pipelines
and the number of point sources and storage locations.
2. Carbon
Avoidance –
Usage
of Green
Hydrogen
as a fuel in
Blast Furnace
An alternative to avoid the carbon emissions during the process of
steel making is to replace carbon with hydrogen as a reductant. In
traditional blast furnaces, by using hydrogen instead of coke for the
iron ore reduction process, the by-product is water (H2O) instead
of CO2. While hydrogen blending serves as a transitional strategy,
technical process constraints put an upper limit on the amount of
blending that can occur without equipment modifications, particularly
for blast furnaces which have a minimum coke requirement.
3. Carbon
Avoidance –
Usage
of Green
Hydrogen
for DRI
“Hydrogen Direct Reduced Iron” (H2 DRI) is another technology
that substitutes hydrogen for the coal or natural gas used for DRI
production. In a DRI furnace, the iron ore is heated but not to the
point of melting. Hydrogen then passes over the hot ore, combining
with oxygen liberated from the iron oxide to form water and leaving
relatively pure iron behind. If the electricity used to produce the
hydrogen and run the furnace comes from non-carbon-emitting
sources, then the overall process will result in little to no carbon
dioxide emissions. Therefore, green steel production will depend on
technologies and infrastructure for producing and handling green
hydrogen on a commercial scale. It is estimated from the various
research studies that the blend of Hydrogen in NG Based DRI can
go up to as high as 30% without any major process changes. 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
24
Technology Feasibility and Recommendations
4. Carbon
Avoidance –
Molten Oxide
Electrolysis
of Iron Ore
This technology employs electrolysis directly to the iron oxide ore
by placing it in an electrolytic cell filled with a mineral-bearing
solution. An electric current is run through the solution, heating it
up beyond the melting point of iron, and separating oxygen from
iron. If the electricity used to power the MOE process comes from
clean sources, the steel can be made with virtually no carbon dioxide
emissions. However, H2 DRI is already proven in Sweden through
project called “HYBDRIT” and GoI being very proactive in trying to
ensure the availability of green hydrogen usage in industries through
National Green Hydrogen Mission, there is a huge scope of its use
in steel industry.
5.6 Green Hydrogen is expected to increase traction in India to fast track the
decarbonization efforts in hard-to-abate sectors like fertilizers, refineries,
steel, etc. Electrolysers used for green hydrogen production have extremely
limited capacity in India and need enormous focus to scale up the
manufacturing capacity. It is recommended to support the nascent industry
in the initial years to realise its true potential. (MNRE/DPIIT/Ministry of
Micro, Small and Medium Enterprises, Short Term)
5.7 Projects on hydrogen in Sweden and Germany are heavily supported by
Government and private funding institutions. In India, industries can take
up bold large-scale trials/projects with funding support and there must be
incentives required to take up work on hydrogen till the process becomes
mature enough for economic merit. It is recommended to incentivize the
process of setting up pilot plants projects and products which can create
faster sustainable solutions. (MNRE/DPIIT/Ministry of Micro, Small and
Medium Enterprises, Short Term)
5.8 A detailed modelling exercise may be undertaken which would simulate the
emissions trajectory, required reduction with respect to various steel sub-
sectors and consequently identify technologies required. As an example,
for a given level of steel production of 100 Million Tons, (hot metal, DRI
and scrap quantities used for production of steel), it is appropriate to
work out the fractional feeds for production of 1 ton of crude steel. It is
necessary to allocate a sectoral emission value to hot metal production
(say, 1.7 tCO2/tHM with partial sequestration) and DRI (say 1.5tCO2/t DRI).
DRI production would involve EAF use and a consequential emission of
0.28t CO2/t DRI (450kWh/t steel and 0.8 kg CO2/kWh). For a HM: DRI:
scrap ratio of 0.5: 0.25:0.25, the net sectoral emission attributable is
1.48 t CO2/t steel assuming energy intensity of 350 kWh/t steel for scrap
re-melting. Once the target requirements are pre-fixed, it may be necessary 5. Decarbonization Options for Steel IndustryReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
25
to enlist the technologies to be sought under collaboration for achieving
the targets for HM production emission and DRI production emission.
Subsequently, integration with carbon based smelting processes can be
planned. (NITI Aayog/Ministry of Steel, Short Term) ANNEXURE I
26
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Abbreviations used in the report
APPC Average Power Purchase Cost
AUSC Advanced Ultra Supercritical
BAT Best Available Technologies
BEE Bureau of Energy Efficiency
BF Blast Furnace
BIS Bureau of Industrial Standards
CC Composite Cement
CCS Carbon Capture and Storage
CCU Carbon Capture and Utilization
CD Contract Demand
CDQ Coke Dry Quenching
CRNO Cold Rolled Non-Oriented
DAE Department of Atomic Energy
DISCOM Distribution Company
DPIIT Department for Promotion of Industry and Internal Trade
DRI Direct Reduced Iron
DSIR Department of Scientific and Industrial Research
DST Department of Science and Technology
EV Electric Vehicles
GGBF Ground Granulated Blast Furnace Slag
GHG Greenhouse Gas
GSI Geological Survey of India
GTAM Green Term Ahead Market Annexure I
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
27
ISTS Inter-State Transmission System
MNRE Ministry of New and Renewable Energy
MOE Molten Oxide Electrolysis
MoEF&CC Ministry of Environment, Forest and Climate Change
MoHUA Ministry of Housing and Urban Affairs
MoP Ministry of Power
MSME Micro, Small and Medium Enterprises
MSW Municipal Solid Waste
MSW Municipal Solid Waste
NEDO New Energy ad Industrial Technology Development Organisation
NG Natural Gas
OAC Over-arching Committee
OPC Ordinary Portland Cement
PAT Perform Achieve Trade
PPC Portland Pozzolana Cement
PSC Portland Slag Cement
RDF Refuse Derived Fuel
RE Renewable Energy
REC Renewable Energy Certificate
RPO Renewable Purchase Obligation
RTC Round the Clock
SCEP Strategic Clean Energy Partnership
SEB State Electricity Board
SG Sustainable Growth
TOD Time of Day
TRT Top-pressure Recovery Turbine
ULB Urban Local Body
WGD Waste Generation Database
WHR Waste Heat Recovery ANNEXURE II
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
28 Annexure II
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
29 Annexure IIReport of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
30 NOTES
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Under SeuS snSta nriblalG nrlowS
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Under Sustainable Growth Pillar of India-US Strategic
Clean Energy Partnership