Student Research Spotlight: The Urgency for Green Steel
As part of College of Business Administration at Ajman University's growing portfolio of student-led sustainability research, a new paper, The Urgency for Green Steel, examines the steel industry’s carbon footprint and the pathways to decarbonization. The research highlights that steel accounts for roughly 7% of global CO₂ emissions, while India’s steel sector contributes about 12% of national GHG emissions. With the EU’s Carbon Border Adjustment Mechanism (CBAM) set to impact exporters across steel, iron, aluminium, cement, fertilisers, electricity, and hydrogen, the paper argues that green steel is no longer optional, it is a strategic necessity.
The paper focuses on Saarloha’s FeRRESTA, India’s first certified green steel. Produced in an Electric Arc Furnace (EAF) using 100% renewable power and over 70% steel scrap, FeRRESTA achieves low Scope 1 and zero Scope 2 emissions. FeRRESTA PLUS reaches net-zero Scope 1 and 2 with offsets. Both are DNV certified and aligned with the First Movers Coalition.
The research compares expansion options. Scaling up EAF is proven but constrained by scrap supply and cost. Green H₂ + DRI can cut emissions by 90%, but requires about $1.1 billion per year for 1 million tons and is not yet mature. The recommended path: start small, pilot green hydrogen, and build partnerships. Traditional BF-BOF remains cheapest and highest-capacity but also highest-emitting, risking stranded assets after 2030.
The paper also notes that green steel currently costs about 2x conventional steel, with fewer subsidies in India than in the EU. Yet market signals are strengthening: exporters, automakers, and ESG-focused firms are paying premiums, and India’s Green Hydrogen Mission and carbon credit trading are creating new momentum. The proposed dual-track strategy scale EAF for short-term brand-building while investing in a green H₂ pilot through JVs and green funds positions sustainability as a long-term ROI and competitive edge, not just CSR.
Keywords: SDG 13, Climate Action, green steel, green hydrogen, steel decarbonization, CBAM, Carbon Border Adjustment Mechanism, Electric Arc Furnace, EAF, Direct Reduced Iron, DRI, renewable energy, industrial emissions, Scope 1, Scope 2, net zero, First Movers Coalition, DNV certification, scrap steel, circular economy, stranded assets, India Green Hydrogen Mission, carbon credits, ESG, sustainable supply chain, Ajman University.