SAIL, RINL emit more CO2 than rivals while producing steel

"On an average, 1.9 tonne of CO2 is emitted for every tonne of steel produced globally. The average CO2 by SAIL and RINL during 2008-09 was 2.99 tonne and 3.18 tonne respectively against the average of 2.09 tonne of CO2 emitted by Tata Steel," the report, which was tabled in Parliament recently, said.

The CAG also pulled up both firms for not fixing any target for reduction in CO2 emission. Tata Steel has set a target of reduction in CO2 emission to less than 2.7 tonnes per tonne by 2012.

Energy consumption by SAIL in producing a tonne of steel at 6.72 G.cal/tcs (giga calories per tonne of crude steel) also exceeds the world average of 4.5 -5.5 G.cal/tcs. In comparison, RINL consumes more energy than SAIL at 6.84 G.cal/tcs.

"Reasons for consumption of energy in excess of the norms included high fuel rate, coke screening losses in blast furnaces and non-availability of gas holder for storing coke oven and blast furnace gas," the CAG said.

SAIL has not set any target for reduction in energy consumption whereas RINL could not meet the targets set by it for reduction in consumption of energy, it said.
Meanwhile, SAIL and RINL both use more raw material to produce steel compared to its domestic and global peers.

"On an average 2.6 tonnes of raw material is used to produce a tonne of crude steel. The consumption of raw materials by SAIL ranged between 3.26 tonne per tonne of crude steel (t/tcs) and 3.38 t/tcs," CAG report said.

"Though there has been reduction in consumption of raw materials over the years, SAIL is lagging behind Tata Steel, which consumed 3t/tcs in 2008-09. In RINL, it ranged between 3.04 t/tcs and 3.1t/tcs," it added.

Iron ore, coal, limestone and recycled steel are the main raw materials used for steel making.