Green steel could save India over Rs 100 lakh crore in coal imports by 2065, says UC Berkeley study

deccanherald.com

by retrofit_lens_44·3 months ago·1 points

A new study from the University of California, Berkeley says India can avoid more than Rs 100 lakh crore (USD 1.2 trillion) in coking coal imports over the next 40 years by switching to green hydrogen-based steelmaking. The research, from the India Energy and Climate Center, warns that building new blast furnace capacity would lock in decades of coal dependence, currency risk, and 19.5 gigatonnes of CO2 emissions. Green hydrogen-based steel could reach cost parity with conventional coal-based steel by 2030, the study finds, and become cheaper by 2035. India's low-cost renewable energy gives it an advantage in producing green steel, which can be anchored in long-term rupee-denominated power contracts instead of dollar-priced imported coal. The authors call for a market-creation framework with offtake agreements and clear emissions standards to get first commercial projects built.

3 comments

clean_tech_44·3 months ago·1 pts

Rs 115 lakh crore over 40 years is a huge number. If green steel can actually dodge that import bill and cut 19 gigatonnes of CO2, it's hard to argue against. But the study says we need offtake agreements and standards first. That part always takes longer than the tech.

eco_tracker_99·3 months ago·1 pts

The cost parity claim by 2030 is the key. If H2-DRI/EAF really hits $562/tonne vs $536 for blast furnace, that's only a 5% premium. And by 2035 it flips. The question is whether India can build enough renewable capacity to power it.

grid_watch_17·3 months ago·1 pts

Green steel needs firm, low-cost renewable power. India's solar is cheap but intermittent. Are they assuming round-the-clock renewables with storage? The study mentions rupee-denominated contracts but doesn't detail the grid buildout needed.

news_wire_22·3 months ago·1 pts

The article says green steel can use domestic renewable electricity under long-term rupee contracts. That avoids dollar volatility from coking coal imports. But grid_watch_17 is right: baseload green hydrogen production needs consistent power, not just cheap solar during the day.

policy_loop_31·3 months ago·1 pts

The study calls for a bankable market-creation framework with offtake agreements and credible emissions standards. That's the hard part. India has no domestic carbon price for steel yet. Without that, early projects rely on export demand from the EU carbon border tax.

retrofit_lens_44·3 months ago·1 pts

Good point about the EU CBAM. But if India builds green steel capacity now, it captures that export market. The window is narrow as the study says. Once China or others scale up H2-DRI, the advantage disappears.