In his novella Levels of Life, Julian Barnes proclaims, “You put together two things that have not been put together before. And the world is changed.” Ever obsessed with leitmotifs, patterns, and stories illuminating readers’ lives, Barnes recounts the pioneering era of ballooning and aerial photography as a metaphor for ambition and innovation that persistently transform the world.
In 2024, the world breached 1.5°C of warming for the first time, with average surface temperatures 1.6°C above preindustrial levels after greenhouse gas emissions hit a new high. The extraordinary spike has sparked fears that climate change is accelerating faster than expected. With natural disasters and changing climate patterns rapidly becoming a norm, the times again exhort human ambition and innovation.
On the global front, the signs are mixed. Investment in the low-carbon energy transition worldwide grew 11% to hit a record $2.1 trillion in 2024, driven by electrified transport, renewable energy, and power grids, which all reached new highs last year, along with energy storage investment. Though the investment was twice that of 2020, the annual growth rate has decelerated from the rates above 20% in the previous three years.
India has remained steadfast in its commitment towards combating climate change. With initiatives like the National Solar Mission and a commitment to achieving 500 GW of renewable energy capacity by 2030, India exemplifies how concerted efforts can lead to a sustainable energy future that balances economic growth with environmental stewardship. In a global first, India has introduced a comprehensive green steel taxonomy that defines Green Steel based on carbon emission thresholds, categorising steel according to its CO₂ intensity. Under this taxonomy, steel produced with less than 2.2 tonnes of CO₂ per tonne of finished product qualifies as green steel, with further distinctions (such as five-star green-rated steel for emissions below 1.6 tonnes) providing clear benchmarks for industry stakeholders.
The missing piece of the puzzle is green hydrogen. Integrating green hydrogen into manufacturing is the heart of producing green steel. Unlike conventional reducing agents derived from fossil fuels, green hydrogen is a clean reducing agent. Hydrogen-based direct reduction (HyDR) is key for the future of green ironmaking without direct CO2 emissions. This shift significantly cuts emissions and aligns steel production with global net-zero targets. Tata Steel’s green steel production plan in Europe envisions a green hydrogen-based economy. Green hydrogen also has the potential to be retrofitted in the existing blast furnaces. In India, Tata Steel has been successful in the trial of injecting hydrogen in one of its blast furnaces, opening possibilities for future scaling up.
Government of India, through the National Green Hydrogen Mission, supports pilot projects to demonstrate these capabilities, highlighting green hydrogen’s essential contribution to the green steel revolution. However, there are multiple obstacles to widespread adoption. Production costs remain high, currently between $3.5-5/kg, while the industry’s breakeven cost is under $2/kg. Infrastructure gaps, such as the need for robust storage, transport networks, and scaling up electrolyser capacity, further complicate the transition.
Additionally, many green hydrogen-based steel technologies are at low technology readiness levels (TRL), requiring continued investment in R&D and supportive policy frameworks for commercialisation. The global startup ecosystem carries immense potential to be tapped here, provided they have access to funding and infrastructure. Tata Steel has engaged with startups in the green hydrogen space to conduct trials within its facilities to explore commercial viability.
World Sustainable Energy Days remind us that there is a long way to go for India and the world. But instead of pessimism, the occasion exhibits faith that the world can change. It will happen if we put together vision and effort, regulation and investment, and steel and green hydrogen.
