This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
India’s metal industry, valued at $220.8 billion, is driven by a booming economy and rising infrastructure spending. Steel, the crown jewel, boasts the second-largest global production, with consumption surging over 14% in 2023. Aluminum and copper witness similar trends, with production and consumption expected to rise significantly in the coming years. Metal fabrication, a crucial downstream segment, is projected to reach $28.46 billion by 2028. The government fuels this growth with initiatives like the PLI scheme and the National Steel Policy, aiming for a 300 million-tonne steel capacity by 2030
India’s metal industry is taking initial steps towards a greener future
Vedanta Aluminium has adopted a two-pronged strategy to reduce its carbon footprint and achieve Net Zero by 2050. The strategy involves reducing its carbon emissions by increasing the use of renewables to 50 percent of its power requirement by 2025, enhancing its operational efficiencies to achieve a high metal recovery rate of 97 percent and a low specific energy consumption of 13.8 GJ/tonne of aluminum, and transitioning to biofuels to reduce its carbon intensity by 20 percent. The company has secured the top rank in the S&P Corporate Sustainability Assessment rankings for the aluminium industry, for the assessment period 2023.
Jindal Steel and Power (JSPL) actively decarbonizes its metal manufacturing processes. Their focus lies on energy efficiency, achieving a 4.5% reduction in specific energy consumption since 2014. Upgrading plants, implementing waste heat recovery, and promoting conservation among employees contribute to this goal. Additionally, they aim for 25% renewable energy by 2030, currently utilizing 12% and expanding capacity by 1,335 MW. Green hydrogen exploration is underway through a 2.5 MT per year pilot project in partnership with HPCL. Resource optimization, including increased recycled materials usage, further reduces their environmental impact.
India’s metal industry’s future clings on navigating decarbonization while maintaining growth. Green hydrogen production needs scaling up, supported by collaboration and cost reduction. Renewable energy capacity must expand aggressively, targeting 25% by 2030, alongside grid improvement. Embracing circular economy principles and enhancing resource efficiency are pivotal for immediate environmental benefits. The establishment of clear policies that incentivize green investments and implement carbon pricing is essential.
Upgrading the skill set of the workforce will be crucial. As the market shifts towards a preference for sustainable products, the implementation of eco-labeling and responsible sourcing becomes imperative. By adopting these strategies and promoting a unified vision, India’s metal industry can pave the way for a sustainable future without compromising its economic vitality.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
