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Economic Times
30-07-2025
- Economic Times
Green steel demand to reach 4.49 MnT in 2030 driven by construction, infra sectors: EY-Parthenon
From a negligible level at present, the demand for green steel in the country is expected to reach 4.49 MnT by 2030, driven by sectors like construction, infrastructure and automobiles, Ernst & Young (EY)-Parthenon said in a report. Five years from now, 2030 is seen as an important year for Indian steel as the government aims to achieve ambitious target of 300 million tonnes (MnT) annual steel making capacity under its National Steel Policy 2017. Although demand for green steel in India is currently negligible, it is expected to rise significantly over the coming decades, said the report titled 'Unlocking Green Steel Demand: An assessment of India's automotive, infrastructure and construction sectors.' Steel produced through low carbon emitting process is referred as green steel. The report has been prepared in collaboration with WWF-India & CII-Green Business Centre (GBC). "By FY 2029-30, the demand for green steel is projected to reach 4.49 MnT, driven primarily by the construction sector at 2.52 MnT, followed by infrastructure at 1.5 MnT, and automobiles at 0.48 MnT," the Ernst & Young (EY)-Parthenon report said. This early uptick will be fuelled by growing urbanisation and a shift towards sustainable building practices, it said. The demand is set to reach 24.89 MnT by FY35, and is expected to more than double to 73.44 MnT by FY40, largely due to the green transition in infrastructure and automotive manufacturing. By FY50, green steel demand is projected to peak at 179.17 MnT, with construction accounting for more than half, and infrastructure and automobiles continuing to contribute significantly. Meeting this demand will require widespread adoption of green hydrogen-based DRI (directly reduced iron) technology, along with sustainable production methods such as electric arc furnaces and molten oxide electrolysis. The transition towards green steel is driven by a notable price premium due to its higher production costs and the impact of carbon pricing on traditional fossil-based steelmaking. Currently, the premium on green steel produced through H₂2 DRI (hydrogen-based Direct Reduced Iron) technology stands at USD 210 per tonne, translating to a 3.7 per cent increase in construction project costs, 5.2 per cent in infrastructure projects, and 4.1 per cent in automotive manufacturing. However, as green hydrogen costs decline and technology scales up, the premium is projected to drop significantly. By 2030, the green steel premium will fall to USD 7 per tonne, reducing cost impacts across sectors to below 1 per cent by 2035-2040. In contrast, the continued use of carbon-intensive BF-BOF steel will lead to rising costs due to escalating carbon taxes, the report said.
Time of India
30-07-2025
- Time of India
Green steel demand to reach 4.49 MnT in 2030 driven by construction, infra sectors: EY-Parthenon
From a negligible level at present, the demand for green steel in the country is expected to reach 4.49 MnT by 2030, driven by sectors like construction, infrastructure and automobiles, Ernst & Young (EY)-Parthenon said in a report. Five years from now, 2030 is seen as an important year for Indian steel as the government aims to achieve ambitious target of 300 million tonnes (MnT) annual steel making capacity under its National Steel Policy 2017 . Explore courses from Top Institutes in Please select course: Select a Course Category Degree Technology MCA Product Management Data Science others Others PGDM Artificial Intelligence Design Thinking Project Management Healthcare Data Science Cybersecurity Finance CXO MBA Public Policy Management Data Analytics healthcare Leadership Operations Management Digital Marketing Skills you'll gain: Data-Driven Decision-Making Strategic Leadership and Transformation Global Business Acumen Comprehensive Business Expertise Duration: 2 Years University of Western Australia UWA Global MBA Starts on Jun 28, 2024 Get Details Although demand for green steel in India is currently negligible, it is expected to rise significantly over the coming decades, said the report titled 'Unlocking Green Steel Demand : An assessment of India's automotive, infrastructure and construction sectors.' Steel produced through low carbon emitting process is referred as green steel. The report has been prepared in collaboration with WWF-India & CII-Green Business Centre (GBC). Live Events "By FY 2029-30, the demand for green steel is projected to reach 4.49 MnT, driven primarily by the construction sector at 2.52 MnT, followed by infrastructure at 1.5 MnT, and automobiles at 0.48 MnT," the Ernst & Young (EY)-Parthenon report said. This early uptick will be fuelled by growing urbanisation and a shift towards sustainable building practices, it said. The demand is set to reach 24.89 MnT by FY35, and is expected to more than double to 73.44 MnT by FY40, largely due to the green transition in infrastructure and automotive manufacturing . By FY50, green steel demand is projected to peak at 179.17 MnT, with construction accounting for more than half, and infrastructure and automobiles continuing to contribute significantly. Meeting this demand will require widespread adoption of green hydrogen-based DRI (directly reduced iron) technology, along with sustainable production methods such as electric arc furnaces and molten oxide electrolysis. The transition towards green steel is driven by a notable price premium due to its higher production costs and the impact of carbon pricing on traditional fossil-based steelmaking. Currently, the premium on green steel produced through H₂2 DRI (hydrogen-based Direct Reduced Iron) technology stands at USD 210 per tonne, translating to a 3.7 per cent increase in construction project costs, 5.2 per cent in infrastructure projects, and 4.1 per cent in automotive manufacturing. However, as green hydrogen costs decline and technology scales up, the premium is projected to drop significantly. By 2030, the green steel premium will fall to USD 7 per tonne, reducing cost impacts across sectors to below 1 per cent by 2035-2040. In contrast, the continued use of carbon-intensive BF-BOF steel will lead to rising costs due to escalating carbon taxes, the report said. Economic Times WhatsApp channel )
News18
30-07-2025
- News18
India's Green Steel Demand Set To Surge 40-Fold By 2050: Report
The EY Parthenon report projects a dramatic rise in India's green steel demand — from negligible levels today to 4.49 million tonnes by FY2030, and further to 73.44 MT by FY2040. Green steel demand in India is projected to skyrocket to 179 million tonnes by FY2050 from the negligible levels currently, driven by rapid infrastructure growth, booming construction, and a climate-conscious auto sector, according to a new EY Parthenon report. Released in collaboration with WWF-India and CII-Green Business Centre, with support from the India Green Steel Coalition (IGSC), the report titled 'Unlocking Green Steel Demand: An Assessment of India's Automotive, Infrastructure and Construction Sectors' outlines how India's green transition in steel could become both an environmental and economic imperative. Green Steel Demand to Reach 179 Million Tons by FY2050 The report projects a dramatic rise in India's green steel demand — from negligible levels today to 4.49 million tonnes by FY2030, and further to 73.44 million tonnes by FY2040, before touching 179 million tonnes by FY2050. The construction sector is expected to lead the initial uptake, followed by infrastructure and automotive segments. As of now, construction and infrastructure together account for 78% of India's steel consumption, which currently stands at 136 million metric tonnes. This figure is expected to rise to 390 million tons by FY2050, reflecting India's urbanisation push and infrastructure goals. 'Moving to green steel is no doubt a big shift—it comes with its challenges, but also opens up huge opportunities for India's industrial sector," said Kapil Bansal, Partner – Energy Transition and Decarbonization, EY Parthenon. Green steel, typically made using hydrogen-based Direct Reduced Iron (DRI) or electric arc furnaces powered by renewables, currently comes at a premium. The report pegs the green steel premium at around $210 per tonne, resulting in modest cost hikes — 4.1% for automotive, 3.7% for construction, and 5.2% for infrastructure. However, this premium is expected to fall below 1% by 2035-2040, as green hydrogen becomes cheaper and production scales up. In contrast, conventional steel, produced via the blast furnace-basic oxygen furnace (BF-BOF) route, is likely to become significantly more expensive as carbon pricing kicks in. Traditional steel prices could rise 81% by 2050, from today's $660 per tonne to $1,193 per tonne, under escalating carbon tax regimes. CBAM Could Cost Indian Exporters Over Rs 19,000 Crore by 2030 The report flags the European Union's Carbon Border Adjustment Mechanism (CBAM) as a major concern for Indian steel exporters. With India's average emission intensity at 2.5 tonnes of CO₂ per tonne of steel, compared with the EU benchmark of 1.28 tonnes, exporters could be taxed heavily if carbon intensity is not lowered. Without urgent decarbonisation, Indian steel exports could incur CBAM-related taxes of Rs 19,277 crore by 2030, eroding global competitiveness. Strategic Roadmap: What Needs to Be Done The study outlines clear recommendations for policymakers, the steel industry, and major steel-consuming sectors: Government End-Use Sectors (Construction, Infra, Auto) While hydrogen-based DRI and scrap-fed electric arc furnaces powered by renewable energy are considered the future of green steel, India currently lacks the scale to meet projected demand. The report warns of a looming supply-demand gap, unless massive investments are made in green steel infrastructure, innovation, and raw material supply chains. As India eyes 500 million tonnes per annum of steel capacity by 2047, aligning with climate commitments under the Paris Agreement, the green steel transition is not just an environmental goal — it's an economic necessity. 'What once felt like a nice-to-have for sustainability is fast turning into a business must-have," Bansal noted, underscoring how rising carbon costs and shifting global norms are pushing green steel into the mainstream. With decisive action from all stakeholders — government, industry, and end-users — India could emerge not just as a steel powerhouse, but as a leader in sustainable industrial transformation. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : steel industry view comments Location : New Delhi, India, India First Published: July 30, 2025, 12:10 IST News business » economy India's Green Steel Demand Set To Surge 40-Fold By 2050: Report Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
