Bhubaneswar, April 27: A research laboratory here has initiated India’s first effort to produce eco-friendly green steel, producing 500gm pellets of the metal through a new process that replaces coal with hydrogen.

The replacement of coal with hydrogen in the steel-manufacturing process is expected to reduce emissions of greenhouse gases that are contributing to global warming and climate change, a senior scientist at the Institute of Minerals and Materials Technology said.

The institute researchers have so far created 500gm of steel through a laboratory process that they are now trying to scale up to produce 1kg pellets. The Visakhapatnam-based Rashtriya Ispat Nigam Limited has also initiated steps to start a pilot plant to take the laboratory process to the factory-level, said institute director Baradakanta Mishra. “We hope to achieve the 1-kg process by 2014,” Mishra said.

The Union steel ministry has provided Rs 10 crore to the institute to develop the process.

Senior principal scientist at the institute Bhagyadhar Bhoi, who works on the green steel project, said that though this alternative process for steel-making would help in reducing greenhouse gases, the high combustibility of hydrogen and its high cost were among the technology’s limitations.

Sources said that as the plasma production was done by mixing hydrogen with argon, there was no toxic or polluting by-product. Water is created in the process and large-scale production could result in its greater production.

The institute director, however, observed that once the technology becomes user friendly, 10 years down the line it could be a more sought-after one for steel production.

“Nations from the Arab world have plenty of natural gas to produce quality steel without polluting the environment. The cost effectiveness will be achieved as the producer can claim carbon credits for using the process. Money received from carbon credits can compensate investment on hydrogen gas,” Mishra said.

Sources said India had become the world’s fourth largest producer of steel after China, Japan and the USA. But, the per capita consumption is 50kg against the world average of 230kg. The proposed draft of the new National Steel Policy has pegged the country’s steel-making capacity in the range of 244-281 million tonnes per annum by 2025-26 to increase the per capita consumption of steel to 150kg.

“As in the conventional steel-making process, the production of greenhouse gases is a prominent component, the green steel-making process will ultimately lead towards a better environment to live in,” said Bhoi.