Communities all around the world have encountered the problems of climate change, which poses a risk to the steel industry. The manufacturing of steel emits about 7 to 9% of global CO2. It has posed a threat to the environment. This is why steel distributors in India are facing difficulties in the production and selling of steel in the market. In order to decrease the amount of carbon footprint produced from the production, the steel manufacturing companies are hell-bent on developing a type of steel that will focus on a more sustainable future.
The steel producers have established Green Steel, which is made using advanced technologies to reduce excess carbon emissions compared to other steelmaking methods. Green steel plays a pivotal role in targeting climate needs by reducing the negative impact on the environment from essential methods like the construction and manufacturing of steel.
What are the major challenges faced by Traditional steel producers?
The steel distributors in India rely on manufacturers that prepare the steel from coal-fired blast furnaces, which is the major reason for CO2 emissions. The furnace converts the iron ores into pig iron, which is further made into steel. The major problems are:-
- Generation of waste
- Air or water pollution
- Dependence on finite resources
- High consumption of energy
Which advanced technologies drive the production of Green Steel?
- The reduction of iron ore is the major part of making steel. Green steel uses hydrogen in place of coal to reduce iron ore. It produces water, which is a byproduct of CO2. Hydrogen is made using an electrolysis method, which is powered by renewable energy. The problem is to scale up the demand for green steel hydrogen to meet the needs of the customers.
- Electric arc furnaces are used to melt recycled steel using renewable energy. It is most effective when the melted steel is combined with the input of the scrapped steel. The potential for emission reduction can be increased when it is powered by clean sources of energy like wind or solar.
- Using biomass and fossil fuels can reduce the dependency on fossil fuels. This approach not only discards the harmful emissions but it also directs to the rising issue of waste management.
- Electricity is the major aspect of the production of green steel. Being in the early stages of development, it has shown great potential in making zero-carbon steel in India. The process starts when current is passed through iron ore, which is put in a chemical solution, and the iron is separated from the oxygen content. Further research is going on to make this process more viable at a large scale.
What are the merits of producing Green Steel?
- It promotes energy security by less reliance on the use of fossil fuels.
- It has benefited the local communities by improving the level of air and water pollution around the steel plants.
- It will create new job opportunities for people in the sectors of technology and energy.
- It meets all the strict environmental regulations by maintaining all of the sustainable goals.
What effects does Green Steel have on the global market?
- As the demand for low-carbon steel is increasing, the companies that invest in green steel technologies will gain a competitive edge in the steel market. This could give rise to the business of those steel manufacturers that follow green steel production.
- The requirement for green steel materials like hydrogen will change the previous supply chains. This will help the industries to develop new partnerships that specifically use renewable energy for making steel.
- The production of green steel is more costly than carbon steel in India. However, the costs will decrease once the green steel production is mature and scaled up. That difference could create different tiers of the market that offer premium prices of green steel.
Conclusion:-
The introduction of green steel in the market will change the overall landscape of the market. This will open up new possibilities for the products in the market that focus on the sustainable practices of making steel. Green steel also reduces the amount of harmful emissions from industries. The methods used for the production of green steel include hydrogen for reduction, using electric arc furnaces and the electrolysis method.
