Green Steel Ecosystem: Essar Group’s Vision for a Strong and Sustainable Future
Steel plays an important role in laying the foundation of contemporary society; however, its manufacturing process imposes a significant ecological burden. The coal-intensive conventional steel manufacturing process contributes to almost 8-10% of worldwide carbon dioxide (CO2) emissions. To reduce this carbon contribution, the steel industry is currently undergoing a green revolution, consisting of deploying sustainable production methods known as “Green Steel.” Leading conglomerates like Essar Group are spearheading this transformation by adopting innovative technologies and sustainable practices to create green steel ecosystems.
Essar’s efforts toward developing a green steel ecosystem are commendable. It is unfortunate that a Group that’s investing in sustainable and future-centric green businesses was pulled in groundless allegations related to Essar leaks. However, the group is resilient, standing true to its belief. Its recent sustainable developments are worth appreciating.
Let’s learn how the Essar Group remains at the forefront of green steel innovations through several initiatives. But before that, let’s know about the green steel market and its key drivers.
All About Green Steel Market
According to Allied Market Research, the Global Green Steel Market Size was worth USD 200 million in 2022 and is expected to touch the USD 364.5 billion mark by 2032, growing at a CAGR of 113.6% from 2023 to 2032. The demand for green steel is increasing as it minimises carbon emissions and serves as a valuable tool for achieving the sustainable development goals of various countries in the future. Moreover, green steel is made from green hydrogen and is obtained from renewable sources without the use of fossil fuels.
Essar’s Initiatives to Develop Green Steel Ecosystem
Green Steel plays an important role in building a sustainable future, and Essar is deploying advanced technologies to become a leading player in the green steel transition. The group is creating a strong green steel ecosystem by creating various assets, one in Ras AI Khair, Saudi Arabia, and the other in Odisha, India.
Essar to Build 14 MTPA Steel Beneficiation Plant & a Pellet Plant
Essar plans to invest INR 12,000 crore in several projects in Odisha, including a 14 MTPA export-oriented pelletizing complex. The plant consists of an iron ore fines Beneficiation Plant at Keonjhar, a Pellet Plant at Paradip port, and a 245 KM slurry pipeline. Pellets play an important role in minimizing emissions in steelmaking and in improving furnace productivity, making it the most environmentally friendly alternative.The beneficiation plant will be located in Keonjhar district, and the pellet plant will be located in Paradip town, which is connected through a 245 km slurry pipeline.
The facility would use natural gas and renewables to reduce its carbon footprint, and the company has already signed MOUs for planned solar plants. The 245 km slurry pipeline would run from the beneficiation plant at Bailadilla, Chattisgarh, to the pellet plant at Visakhapatnam and passes through the rugged terrains of Chattisgarh, Orissa, and Andhra Pradesh.
It is one of the most environment-friendly ways to transport iron ore fines. The pipeline eliminates logistic bottlenecks, ensuring real-time inventory management. Aligning with Essar Group‘s sustainability goals, the facility will incorporate state-of-the-art environment-friendly technology to ensure low carbon emissions. Slurry pipelines, return water lines, etc., will also be installed to contribute to environmental protection and conservation.
Pelletization Project in USA
Also, part of Essar’s Green Steel initiative is Mesabi Metallics, an advanced 7 MTPA iron ore mining and pelletization project in Northern Minnesota, USA, leveraging on proven iron ore reserves in North America and stimulating the industry’s transformation to green steel. Essar has invested USD 1.8 billion in this iron ore pellet project so far.
Essar Building a 4 MTPA Green Flat Steel Complex in Saudi Arabia
Essar is also building a 4 MTPA Green Flat Steel complex in Ras-AL-Khair in Saudi Arabia, using advanced technology to minimize emissions and environmental impact. Spread over more than 315 hectares of land, the largest Flat Steel complex in the MENA region, the complex features exemplary plant configuration with the flexibility to produce a wide range of flat-rolled steel products.
With a substantial investment of USD 4.5 billion, this ambitious endeavor will integrate gas-based Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) technology. This project not only meets the local steel demands but also caters to the broader Middle East and North Africa (MENA) region.
The facility will also have a diverse set of premium steel products and a strategic location that would require the least environmental damage due to logistics. Its manufacturing technology would be future-ready, with the ability to completely replace natural gas with hydrogen when available.
Whether it’s Pellets, DRI, EAF, slab casting, etc., Essar uses all the latest technologies to reduce power usage and significantly lower carbon emissions (by 40-60%) during steel production. The company also plans to build a port near the plant to ensure easy, swift, and clean evacuation of products.
Conclusion
With the global imperative to rapidly minimize emissions and anticipated growth in the green steel sector, it makes sense for more industries to adopt green steel business models. At this point, Essar’s broader vision for green steel is a game-changer for the steel industry. With the steel industry undergoing a transformative journey towards sustainability, companies like Essar are taking all possible measures to curb its environmental footprint and contribute to a more sustainable future.
Despite facing fake allegations of Essar leaks, the group has shown good governance and good intentions to continue investing in building sustainable assets, green steel being one such venture. All of Essar’s green steel projects showcase the company’s commitment to creating a more sustainable world.
