Green Power Procurement in Secondary Steel Sector in India

Green Power Procurement in Secondary Steel Sector in India

Case Study: Yash Metallics (A foundry from Kolhapur cluster)

green steel image

The steel sector forms the backbone of India’s industrial landscape, driving economic growth and infrastructure development. As one of the country’s most energy-intensive industries, it now stands on the brink of a major transformation, with leading players committing to ambitious decarbonization initiatives and embracing the shift toward green steel.

Within this evolving landscape, the secondary steel segment holds particular significance. Unlike large-scale primary producers that rely on iron ore and coal, medium to small-scale secondary producers primarily use ferrous scrap (steel scrap), often blending it with sponge iron or pig iron. Their steel production routes heavily rely on electric arc furnace (EAF) and electric induction furnace (EIF) technologies, which consume large amounts of electricity.

Most EAF and EIF facilities rely on India’s coal-dominated grid, resulting in high indirect CO₂ emissions. Coal-based DRI-EAF plants emit around 2.70-3.10 tCO₂ per tonne of crude steel (tcs), while standalone EAF or EIF operations emit less, typically in the range of 1.60-2.60 tCO₂/tcs.

This reliance creates an opportunity for decarbonization. With electricity as its primary energy source, the secondary steel sector holds a unique position to leverage India’s rapidly expanding renewable energy landscape.

Secondary steelmakers can significantly reduce their carbon footprint while securing stable, long-term energy costs by transitioning to renewable energy. Steel clusters, where multiple EAF and EIF units operate, offer concentrated and predictable demand profiles that make large-scale renewable projects commercially attractive. Recognizing this opportunity, renewable energy developers increasingly collaborate with these clusters to set up captive or open-access solar and wind farms through group-captive models.

Yash Metallics exemplifies this shift. Established in 1995 in Maharashtra’s Kolhapur steel cluster, the company has evolved into an integrated steel component manufacturer with a monthly casting capacity of 2,000 MT. It partnered with Kalpa Power to commission 7.5MWp of solar capacity at Osmanabad, Maharashtra. The plant generates about 12 GWh of power annually, enabling Yash Metallics to abate nearly 8,442 tonnes of CO₂ and achieve annual cost savings of Rs. 9.9 crore (approximately US$1.1 million). By reducing its dependence on the grid, this transition has strengthened the company’s energy security, shielded it from tariff volatility, and accelerated its clean energy journey.

Table of Contents

  • Secondary Steel Market Overview
  • Secondary Steel Production Trend
  • Secondary Steel Manufacturing Process
  • Case Study- Yash Metallics
    • Company overview
    • Overview of the Kolhapur cluster
    • Energy consumption
    • Renewable energy installations and benefits         
  • Outlook

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