Relevance: GS III (Environment & Industry) | Source: The Hindu Business Line
1. The Context: Cleaning up the “Iron Frame”
Steel is the backbone of India’s infrastructure, but it is also a major polluter. Conventional steelmaking uses Coking Coal in blast furnaces, releasing massive amounts of CO2.
- The Shift: To meet India’s Net Zero 2070 target, the industry must shift to “Green Steel”—steel produced with the lowest possible carbon footprint.
2. What is Green Steel? (The Science)
- Process Change: Instead of burning coal to remove oxygen from iron ore, Green Steel uses Green Hydrogen (produced via renewable energy).
- Result: The byproduct is Water (H2O), not Carbon Dioxide (CO2).
- Electric Arc Furnaces (EAF): Another method involves recycling scrap steel using furnaces powered entirely by solar or wind energy.
3. The Hurdle: “Green Premium”
- The Problem: Making green steel is currently more expensive than dirty steel. This extra cost is called the “Green Premium.” Manufacturers are hesitant to switch because buyers (like builders) prefer the cheaper option.
- The Solution (Public Procurement): The article argues that the government (Railways, NHAI) is the biggest buyer of steel.
- The Math: Steel is only a small part of a project’s total cost. Even if green steel is 30% costlier, the total cost of building a highway increases by only ~1.1%. The government can easily absorb this small hike to create a guaranteed market for green steel.
UPSC Value Box
| Concept / Initiative | Relevance for Prelims |
| Kalyani Ferresta | India’s first green steel brand, launched by the Kalyani Group. It uses renewable energy to produce steel with zero carbon footprint. |
| CBAM | Carbon Border Adjustment Mechanism. A proposed European Union tax on carbon-intensive products (like steel/cement) imported into the EU. It pushes countries like India to adopt green steel to remain competitive. |
| Green Premium | The additional cost of choosing a clean technology over a traditional, polluting one (e.g., the price difference between a petrol car and an EV). |
The term “Green Steel,” frequently seen in the news in the context of climate action, refers to:
- Steel produced using carbon capture and storage techniques only.
- Steel manufacturing that replaces fossil fuels like coking coal with renewable alternatives like Green Hydrogen.
- A new alloy of steel mixed with biodegradable polymers.
- Steel produced exclusively from recycled scrap in coal-fired plants.
Correct Answer: (2)
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