The mining and metals sector is a significant contributor to CO2 emissions, with metals production being a primary source. In India, where rapid industrialization and urbanization drive a high demand for metals like steel and aluminum, enhancing decarbonization efforts in this sector is crucial for achieving sustainability goals.

 

Current Scenario

• Steel Production: India produced approximately 110 million tonnes of steel in 2020, making it the second-largest steel producer globally. The steel industry in India emits around 250 million tonnes of CO2 annually.
• Aluminum Production: India produced about 3.6 million tonnes of aluminum in 2020, with CO2 emissions from aluminum production estimated at 15 million tonnes annually.
• Mining Sector: The mining sector in India contributes around 10% to the national GDP and employs over 700,000 people directly. The sector’s CO2 emissions are significant due to energy-intensive extraction and processing activities.

Challenges

• High Energy Consumption: Traditional steel and aluminum production processes are energy-intensive, primarily relying on coal and natural gas, leading to high CO2 emissions.
• Inefficient Recycling Practices: The recycling rate for metals in India is relatively low, contributing to increased demand for virgin metal extraction and production.
• Land Degradation and Waste: Mining operations lead to significant land degradation and generate large amounts of waste, impacting ecosystems and local communities.

Key Technology

Green Hydrogen for Steel Production

• Hydrogen-Based Direct Reduction: Using green hydrogen instead of carbon for reducing iron ore can significantly cut CO2 emissions. This technology can potentially reduce emissions by up to 90% compared to traditional blast furnace methods.
• Tata Steel and JSW Steel are exploring hydrogen-based steel production in India, aiming to develop scalable solutions by 2030.

CO2 Capture and Utilization

• Carbon Capture and Storage (CCS): Implementing CCS technology in steel and aluminum plants can capture up to 90% of CO2 emissions. Companies like Indian Oil Corporation are investing in CCS projects to reduce industrial emissions.

Electrification of Heating Processes

• Electric Arc Furnaces (EAF): Shifting from traditional blast furnaces to electric arc furnaces can reduce energy consumption and emissions. EAFs use electricity to melt scrap steel, significantly lowering the carbon footprint.
• Renewable Energy Integration: Powering EAFs with renewable energy sources like solar and wind can further enhance decarbonization efforts.

Enhanced Recycling and Use of Scrap

• Improving Recycling Rates: Increasing the recycling rate of metals can reduce the demand for virgin metal production. Enhancing recycling infrastructure and incentivizing the use of recycled metals can save up to 30% of the energy used in primary production.

• Utilizing Industrial Waste: Using industrial waste and by-products such as slag and fly ash in metal production can reduce raw material consumption and emissions.

Innovative Production Techniques

• Low-Carbon Aluminum Production: Adopting advanced technologies like inert anode technology in aluminum smelting can reduce CO2 emissions by up to 85%. Companies like Hindalco are exploring such innovations.
• Micro-Mills for Steel Production: Developing micro-mills that use localized scrap and renewable energy can decentralize steel production and reduce emissions.

Digital Technologies and Industry 4.0

• Smart Manufacturing: Utilizing IoT, AI, and big data analytics for process optimization can enhance efficiency and reduce waste in metal production. This can lead to a reduction of up to 10% in energy consumption and emissions.
• Predictive Maintenance: Implementing predictive maintenance systems can prevent equipment failures and optimize energy use, leading to further reductions in CO2 emissions.

Case Studies 

• Hindalco's Low-Carbon Aluminum: Hindalco, a leading aluminum producer in India, is investing in inert anode technology to reduce CO2 emissions from aluminum smelting. This aims to cut emissions by 85% compared to traditional methods.

• Indian Oil Corporation's CCS Initiative: Indian Oil Corporation is implementing carbon capture and storage technology at its refineries and industrial plants. This initiative aims to capture up to 90% of CO2 emissions, contributing significantly to the decarbonization of the metals sector.

• JSW Steel's Electric Arc Furnaces: JSW Steel has adopted electric arc furnaces (EAFs) in its steel production processes. By utilizing scrap steel and renewable energy sources, JSW Steel has significantly reduced its carbon footprint.