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Australia-India partnership moves closer to green steel with ‘world-first’ agricultural waste trial


What Happened

  • In a world-first demonstration, rice husk pellets derived from agricultural waste were successfully blended at 5% and 10% concentrations into commercial coal gasifiers at Jindal Steel's plant in Odisha, producing syngas with no loss of performance — a critical proof-of-concept for biomass-based steel decarbonisation.
  • The trial was led by Australia's CSIRO (Commonwealth Scientific and Industrial Research Organisation) in partnership with Indian firm RESCONS, funded by the Australian Government's India-Australia Green Steel Research Partnership.
  • If the process is adopted at scale across India, it could reduce steel sector CO2 emissions by up to 50%, totalling approximately 357 million tonnes of CO2 per year.
  • Biomass use in steelmaking could reduce net emissions by up to approximately 1.19 tonnes of CO2 per tonne of crude steel produced.
  • The next phase will focus on increasing biomass replacement rates and assessing impacts on the direct reduction process; CSIRO and RESCONS also developed an online map of India's steelmaking facilities alongside regional biomass availability to identify optimal deployment sites.

Static Topic Bridges

India's Steel Sector: Scale, Emissions, and Decarbonisation Imperative

India is the world's second-largest steel producer, with an annual output exceeding 140 million tonnes. The sector contributes approximately 240 million tonnes of CO2 per year — about 12% of India's total carbon emissions — with an emission intensity of 2.55 tCO2 per tonne of crude steel, significantly above the global average of 1.85 tCO2/t. India's steel production is dominated by coal-based routes: the Blast Furnace–Basic Oxygen Furnace (BF-BOF) route and coal-based Direct Reduced Iron–Electric Arc Furnace (DRI-EAF) route together account for ~92% of output. As India's infrastructure build-out accelerates, steel demand — and associated emissions — are projected to double by 2030, making decarbonisation urgent.

  • India: 2nd largest steel producer globally (after China).
  • Emission intensity: 2.55 tCO2/tonne steel vs. global average of 1.85 tCO2/tonne.
  • Coal-based technologies: ~92% of production in 2021.
  • Government target: 300 million tonnes steel capacity by 2030.
  • Green Steel Initiative: Ministry of Steel has a dedicated framework for low-carbon steel transition.

Connection to this news: The trial directly targets the DRI (Direct Reduced Iron) gasification step — one of the most coal-intensive stages — demonstrating that agricultural biomass can partially replace coal in existing infrastructure without new capital expenditure.


Biomass Gasification in Steelmaking: The Science

Steelmaking via the DRI-EAF route first converts coal (or gas) into syngas (a mixture of CO and H2) through gasification; this syngas is then used to reduce iron ore to metalite (sponge iron). Replacing coal with biomass (such as rice husk pellets) in the gasifier reduces the fossil carbon input and, because biomass carbon is part of the short-term carbon cycle, lowers net lifecycle CO2 emissions. Rice husks — a byproduct of rice milling — are abundant in India, largely treated as low-value agricultural waste that is often burned in fields, contributing to air pollution. Pelletising rice husks makes them amenable to industrial-scale gasifier feeding.

  • Syngas (synthesis gas): mixture of CO and H2 used to reduce iron ore in DRI process.
  • Rice husk biomass: carbon-neutral on a lifecycle basis (CO2 released was recently absorbed by rice crop).
  • India produces ~20 million tonnes of rice husks annually — large potential feedstock.
  • 5-10% blend achieved in trial; higher substitution rates are the next research target.
  • Biomass-integrated DRI-EAF route: ~67% lower CO2 vs. conventional BF-BOF.

Connection to this news: The trial validates the technical feasibility of the biomass-coal blend at commercial scale in Indian conditions — a critical step from lab to industrial deployment — using locally available agricultural waste rather than imported or costly green hydrogen.


India-Australia Critical Minerals and Green Economy Partnership

The India-Australia bilateral relationship has evolved significantly beyond traditional trade in coal and iron ore to encompass clean energy, critical minerals, and green technology. The India-Australia Green Steel Research Partnership is a government-funded initiative reflecting both nations' net-zero commitments and Australia's strategic interest in maintaining iron ore and agricultural export relationships with India even as the energy transition reshapes commodity markets. Australia is also one of India's largest suppliers of metallurgical coal — so supporting India's green steel transition aligns with Australia's long-term interest in remaining a valued partner post-coal.

  • Australia: major supplier of metallurgical coal and iron ore to India.
  • India-Australia Economic Cooperation and Trade Agreement (ECTA, 2022): framework for broader economic ties.
  • CSIRO (Australia's national science agency) leads the research; RESCONS is the Indian partner.
  • Australian Government provided funding under the bilateral Green Steel Research Partnership.
  • Both countries have net-zero commitments (Australia: 2050; India: 2070).

Connection to this news: The trial embodies the practical, technology-transfer dimension of the India-Australia partnership — moving beyond trade agreements to co-develop decarbonisation solutions deployable in India's existing industrial infrastructure.

Key Facts & Data

  • Trial location: Jindal Steel, Odisha.
  • Biomass blend tested: 5% and 10% rice husk pellets in coal gasifiers.
  • Result: Sustained syngas production with no loss of performance.
  • Potential national impact: up to 50% reduction in steel sector emissions (~357 million tonnes CO2/year).
  • Per-tonne impact: up to 1.19 tCO2 reduction per tonne of crude steel.
  • India's steel emission intensity: 2.55 tCO2/tonne (global average: 1.85 tCO2/tonne).
  • India produces ~20 million tonnes of rice husks annually.
  • Biomass-DRI-EAF route: ~67% lower emissions than conventional BF-BOF.
  • CSIRO (Australia) + RESCONS (India) partnership; funded by Australia's Green Steel Research Partnership.
  • Next step: scaling biomass replacement rates and mapping biomass-to-steelplant supply chains.