According to a recent analysis by the Global Trade Research Initiative (GTRI), India’s steel industry faces challenges due to Germany’s impending Low Emission Steel Standard (LESS). India’s steel industry is already witnessing lower exports and greater imports. Under the voluntary LESS labelling scheme, steel is categorised by the carbon dioxide emissions emitted during the pre-production and production phases of the steel industry. For Indian businesses, the labelling causes a perception issue that may hinder their capacity to get orders from Western nations. India is now a net importer as its steel exports fell by 31.2% from $31.7 billion in 2021–2022 to $21.8 billion in 2023–2024, while imports rose by 37% from $17.3 billion to $23.7 billion. Although there is no legal requirement for the Indian steel industry to adhere to the new German steel standard, doing so could harm exports. In order to maintain the competitiveness of the domestic steel industry in the dynamic global market, the research advises Indian steel companies and the government to take calculated actions, such as investing in low-carbon technology and infrastructure to comply with these new norms.
Centre extends the JI-VAN Yojana till 2028–2029, plans to blend 20% ethanol by 2025–2026
The Pradhan Mantri JI-VAN Yojana has been modified by the Centre to extend it till 2028–29, in keeping with India’s goal of having 20% of its ethanol blending rate by the end of the Ethanol Supply Year (ESY) 2025–2026. In July 2024, the percentage of ethanol blended into petrol had already risen to 15.83%, and for the current ESY 2023–24, the total blending percentage had topped 13%. The updated plan will now include advanced biofuels made from lignocellulosic feedstocks, which include algae, industrial waste, synthesis gas, and leftovers from forestry and agriculture. Incorporating “Bolt on” plants and “Brownfield projects” is an attempt to make better use of the infrastructures already in place in order to increase their operational experience and viability.
Indian oil to raise refining capacity by 25%
State-owned Indian Oil Corporation (IOC) intends to increase its capacity for oil refining by 25% in order to fulfil India’s growing energy needs, according to the Economic Times. By 2050, the company hopes to meet one-eighth of India’s energy needs. Currently, it has nine refineries, 20,000 kilometres of pipelines for oil and fuel transportation, 99 LPG bottling plants, 129 aviation fuel stations and more than 61,000 customer touchpoints like petrol pumps and LPG agencies. By 2050, India’s oil consumption is projected to increase from 5.4 million barrels per day in 2023 to 8.3 million barrels per day. The business wants to boost its annual capacity for refining from 70.25 million tonnes to 88 million tonnes.
CIL and GAIL to jointly set up coal-to-synthetic natural gas project
The government’s Coal India Ltd (CIL) and GAIL Ltd. have entered a joint venture to establish a coal-to-synthetic natural gas project in West Bengal, reported the Economic Times. The joint venture will see GAIL, the country’s largest gas transportation and distribution company, hold 49% of the shares, while CIL will hold 51%. The Cabinet Committee on Economic Affairs had earlier this year approved the establishment of two projects: one from coal to ammonium nitrate through a collaboration between CIL and BHEL, and the other from coal to synthetic natural gas through a joint venture between CIL and GAIL. In an effort to reach the goal of 100 MT coal gasification by 2030, CIL plans to establish two coal gasification plants.
China discovers large gas field in the contested South China Sea
China confirmed the discovery of a sizeable gas field in the South China Sea, in the southeast of the province of Hainan. The world’s first big, ultra-shallow gas field in ultra-deep waters— the Lingshui 36-1 gas field— is estimated to have more than 100 billion cubic meters of original gas in place (OGIP), according to the state-run China National Offshore Oil Corporation (CNOOC). China, the world’s largest importer of natural gas, would benefit from the gas field’s discovery by having greater energy security. By 2023, China will have invested about $64.3 billion on pipeline and 120 million tonnes of liquefied natural gas. Oil and gas development in the South China Sea could lead to further political tensions between China and the neighbouring nations that lay claim on the sea. The China Sea is a highly disputed and strategically important waterway that has grown to be a conflict hotspot because to its abundant fish, natural gas, and oil resources. More than 20% of all trade goes through it, making it one of the busiest shipping lanes in the world.
Glencore cancels plan to close its polluting coal division
Following shareholder opposition, the international mining and commodities trading giant Glencore, based in Switzerland, withdrew its plans to drop off its coal division, according to the Financial Times. According to the report, this action is among the most notable instances of the shift in public opinion towards fossil fuels. The business announced plans last year to list its extremely lucrative but dirty coal business in New York, thinking at the time that this would be advantageous to shareholders. Glencore, however, declared that following a scheduled meeting with investors, it would instead retain the division. The move follows previous withdrawals from environmental, social, and governance investor courtship by big energy players like Shell and BP, which pledged to concentrate on their core oil and gas activities and increase shareholder returns.
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