Advancing Green Steel Production: India's National Green Hydrogen Mission RFP
Key Ideas
- MECON Limited leads the RFP under India's National Green Hydrogen Mission to inject hydrogen into steel production processes.
- Key dates for the RFP process range from document downloads starting on October 7, 2024, to bid submission closing on October 28, 2024.
- Successful bidders will need to provide an Earnest Money Deposit (EMD) and will receive financial assistance in stages for the project's completion.
- The initiative aims to reduce coal and coke reliance in steelmaking, marking a significant move towards low-carbon steel production in India.
India has launched a Request for Proposal (RFP) under the National Green Hydrogen Mission to introduce hydrogen into existing blast furnaces and direct reduced iron vertical shafts within the steel sector. The initiative, spearheaded by MECON Limited, seeks to promote the use of hydrogen to decarbonize steel production in the country. The RFP timeline outlines key dates starting from October 7, 2024, with document downloads until October 28, 2024. Bid submission is set to open on October 16, 2024, and close on October 28, 2024, with the technical bid opening scheduled for October 29, 2024.
The RFP process mandates the submission of a techno-commercial bid and a price bid, both of which must remain valid for 120 days post the opening date. Interested parties can submit pre-bid queries until October 15, 2024, with final clarifications anticipated shortly afterward. The selected bidder will be obligated to furnish an Earnest Money Deposit (EMD) in the form of a Bank Guarantee (BG) amounting to 3% of the total project funding, valid for one year after project completion. Financial support will be disbursed in stages, with an initial 20% upon BG submission and subsequent milestone-based installments.
This endeavor signifies a crucial advancement in India's drive towards low-carbon steel production, with hydrogen poised to significantly diminish the dependence on coal and coke in the steelmaking process. The project underscores the nation's commitment to embracing sustainable practices in the steel industry, positioning hydrogen as a pivotal component in achieving environmental objectives.