India's Green Hydrogen Initiative in Steel Sector: Decarbonizing with Challenges
Key Ideas
  • India's steel ministry collaborates with MECON to explore green hydrogen use in steel production, aiming to reduce carbon emissions in the sector.
  • Government's green hydrogen pilot scheme allocates Rs. 455 crore for steel sector pilots till FY 2029-30 to promote hydrogen utilization.
  • National Green Hydrogen Mission launched to position India as a global hub for green hydrogen production, utilization, and export.
  • Challenges include cost disparity between green and fossil fuel-derived hydrogen, intermittent renewable energy availability, and uneconomical battery storage.
India is taking steps to reduce carbon emissions in the steel sector by exploring the use of green hydrogen. The steel ministry, in collaboration with MECON, is focusing on decarbonizing steel production by incorporating green hydrogen in processes like direct reduction of iron and blast furnaces. The government has allocated Rs. 455 crore for green hydrogen pilots in the steel sector, aiming to promote hydrogen utilization and reduce the carbon footprint. Additionally, the National Green Hydrogen Mission was launched to establish India as a global leader in green hydrogen production, use, and export. However, challenges persist, such as the higher cost of green hydrogen production compared to fossil fuel-derived hydrogen, intermittent availability of renewable energy, and the uneconomical nature of battery storage. Despite these challenges, the initiative is seen as a positive step towards decarbonizing the steel sector and aligning with the country's ambitious net zero target.
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