Green Power Procurement in the Iron and Steel Sector in India

The Iron & Steel Industry, one of India’s most energy-intensive industrial sectors, is at the cusp of a major transformation. All leading steel players aim to decarbonize and green their manufacturing operations, setting Net Zero targets.

Renewable energy (RE) adoption, with its technological maturity and low cost, has become the immediate focus of Iron and steel players in enabling this decarbonization push. Based on recent announcements from major steel players, the RE installed capacity in the Iron and steel industry is set to rise ten-fold from around 850+ MW to 8500+ MW by the end of 2025.

In addition to renewable energy sources, steel manufacturers are exploring other emerging decarbonization technologies, such as green hydrogen and Carbon Capture Utilization and storage (CCUS). Green H₂ and CCUS offer a combined potential of 69% for carbon emission abatement in Iron and steel manufacturing. However, these two are still not economically feasible due to their high cost and relatively low technological maturity.

Indian Iron & Steel industry, with its emission and energy intensity exceeding the global average, will require sustained government support in the form of policy formulation (such as a stringent carbon tax and credits system) and incentives. Ministry of Steel has set up interim (2.4 tCO₂/tcs by 2030) and long-term (Net Zero by 2070) emission reduction targets. National Green Hydrogen Mission mandates that all upcoming steel manufacturing units should be capable of operating with green hydrogen.

JMK Research estimates that around 20-25 GW of renewable energy capacity will likely be added to the Indian Iron and steel sector by 2030. This, in turn, will likely require a significant capital investment of over US$24 billion (including energy storage).

Table of Contents

1. Indian Steel Sector Overview
2. Steel Manufacturing Pathways
3. Ways to decarbonize the Iron and Steel sector
4. Key Government Initiatives
5. Leading Players in the Steel Sector
6. Case Study- JSW Steel Ltd.
   • Company Overview
   • Manufacturing Process overview and Energy Consumption
   • Sustainability Targets and Initiatives
   • Renewable Energy Installations
   • Decarbonization benefits
   • Challenges Faced and Measures Implemented
7. Way Forward

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