FICCI’s India Steel 2023: Industry experts deliberate on Sustainable Solutions in the Steel Sector
Green Steel and Sustainable solution to increase production and efficiency, focus of steel industry at FICCI’s India Steel 2023
· Decarbonization would be the key driver to take the sector forward. Using energy-efficient methods to produce steel will reduce cost and improve acceptance globally: Joint Secretary, Ministry of Steel
The three-day conference India Steel 2023 witnessed steel industry experts deliberate on demand dynamics, the need to achieve sustainable goals via green steel, and find alternative solutions to help achieve decarbonization along with the aspects that could help the steel industry reduce costs. Discussing the challenges and way forward, the industry experts were of the view that energy-efficient technologies and other low-carbon solutions will help reduce production costs and enhance the industry’s competitiveness. Shri Abhijit Narendra, Joint Secretary, Ministry of Steel, “The need is to march towards a zero emission regime through sustainable solutions; decarbonization would be the key driver to take the sector forward. Using energy-efficient methods to produce steel will reduce cost and improve acceptance globally.”
Saying that the growth numbers of the Steel industry are a sign of the resilience of the nation and the industry, Mr. Vinay Shroff, Chief Marketing Officer, JSW Steel Ltd., said, “What worries us is the per capita consumption of Steel where we are third in the world. Spending on infrastructure and urbanization will drive the demand as less than 35% stays in cities whereas globally it is around 60-65% shows that India has a huge opportunity for the steel industry.”
He said that India is the third largest market in Automotive, and the Steel Industry will meet the requirement of the automotive industry by domestic companies. Mr. Shroff told the gathering that we need to be aware of how things are emerging globally, especially in China, to ensure we don’t lose ground domestically and internationally.
Discussing the triggers for the demand dynamics, Mr. Atul Sinha, Vice President Sales Marketing, ArcelorMittal Nippon Steel India, was of the view that the increased productivity, last mile consumption, and nationally-determined contributions are important pillars of demand dynamics. Mr Sinha said, “We have to deploy disruptors in our systems and processes to become more efficient, and for our consumers to look for better steel.”
The industry leaders appreciated the Government initiatives and talked about the global opportunities that would augment demand for Indian steel products. Mr. Vipul Mathur, MD & CEO, Welspun Corp Ltd., said, “We are seeing exponential growth in city gas network, roads, demand in the water sector across all the states, oil and gas; all these put together, the demand in next 4-5 years is going grow at more than 8-9%. The country is witnessing real GDP growth, thus all sectors are growing. A lot has to be done on innovation and cost sides; on the cost side, we have to be globally competitive.”
Ms. Suman Sharma, Managing Director, Solar Energy Corporation of India (SECI), “Energy demand is going to be manifold, and steel is a major part of energy demand in India; the scope for introducing renewable energy is huge. Nowadays, sustainability has become an important factor in government and the corporate. The need is to act fast and convert potential into reality. As of now, blast furnaces play a dominant role in the steel sector, but the need is to make the right choices and take the sustainability journey ahead.”
Statistically, 55% of steel production is done via EAF/IF. The experts were of the view that the industry has to understand the challenges attached to the transformation and be ready with the help of government initiatives. Talking about the transition, Dr. Saurabh Kundu, Chief Corporate Sustainability Officer, Tata Steel, said, “Most steel plants will start experimenting, and the time is right to set the direction. The strategic objectives would be to change the process of iron making, and adopt sustainable practices such as CCU; the enablers would be green power and green hydrogen.”
Experts at the India Steel 2023 conference felt that while the current policy framework has facilitated growth in recent years, there is still room for improvement to make the framework more conducive to the industry’s growth and global competitiveness. The suggested enablers to help the Indian steel sector become globally competitive and achieve its potential were technological advancements, access to raw materials, infrastructure development, quality and innovation, and sustainable and green practices.
