Demand for green steel in India to reach 4.5 million tons by 2030 – report

Demand for green steel in India will reach 4.49 million tons by 2030. This is stated in a report by Ernst & Young Parthenon, The Economic Times reports.

The growth in demand will be driven by construction, infrastructure and the automotive industry. By the 2039/2040 fiscal year, it could reach 73.44 million tons.

Green hydrogen technology will be crucial to meeting this demand.

«The transition to green steel represents both a significant challenge and a tremendous opportunity for India’s industrial sector,» said Kapil Bansal, Partner at EY Parthenon and lead author of the report.

According to him, the current premium for such products appears to be significant, and the analysis shows that it could reduce steel costs over the next decade, largely due to the increasing impact of carbon pricing.

In addition, the cost gap is expected to narrow as the production of green hydrogen-based steel by direct injection becomes more affordable and green hydrogen prices are projected to decline over the coming years.

EY-Parthenon recommends that end-use sectors start purchasing green steel 10 years ahead of their zero-emission targets. In addition, they should accept the current slight increase in production costs (3.7-5.2%) for the sake of long-term sustainability benefits and work closely with suppliers of low-carbon products.

As a reminder, India is continuing to introduce green steel certification. Already 39 producers in the country have applied for the relevant certificates.