India has outpaced China as the leading developer of coal-based steelmaking capacity, according to a recent report by Global Energy Monitor.
The capacity under development globally, following the ‘blast furnace-basic oxygen furnace’ production method, rose to 380 mln tons per annum in 2022 from 350 mln tons per annum in 2021.
The annual survey of data in the Global Steel Plant Tracker finds that almost all of the coal-based capacity under development is in Asia (99pct), with China and India holding the majority of those developments (79pct together).
India now holds 40pct of the coal-based ‘blast furnace-basic oxygen furnace’ capacity currently being developed, while China is responsible for 39pct.
The report highlights the pressing need for a transition to cleaner forms of steel production to achieve decarbonization targets. Despite the growth of cleaner alternatives, the expansion of coal-based steelmaking remains a concern.
According to the International Energy Agency’s Net-zero by 2050 scenario, the total share of ‘electric arc furnace’ capacity should reach 53pct by 2050. This means 347 mln tons of coal-based capacity would need to be retired or canceled and tons 610 mln tons of electric arc furnace capacity would need to be added to the current fleet, the report stated.
