MECON Limited Issues RfP for Green Hydrogen Integration in Steel Sector
Key Ideas
  • MECON Limited, on behalf of the Ministry of Steel, invites proposals for using Hydrogen in DRI Pilot Plant and existing Blast Furnace to reduce fossil fuel dependency.
  • The National Green Hydrogen Mission supports pilot projects in the steel sector with a budgetary outlay of ₹455 crore till 2029-30 to promote green hydrogen adoption.
  • The schemes aim to advance hydrogen utilization technologies in steelmaking, validate feasibility and economic viability, and ensure safe production of low-carbon iron & steel.
  • This initiative reflects a positive outlook towards transitioning the steel industry from fossil fuels to green hydrogen for a more sustainable and environmentally friendly production process.
MECON Limited, appointed by the Ministry of Steel as the Scheme Implementing Agency, has issued a Request for Proposal (RfP) to implement the use of hydrogen in the steel sector. The RfP aims to seek proposals from various entities for utilizing hydrogen in the DRI Pilot Plant, existing Blast Furnace, and DRI Vertical shaft. The initiative is part of the efforts to replace fossil fuels with green hydrogen, leveraging advancements in renewable energy and electrolyzers for hydrogen production. The National Green Hydrogen Mission, under the Ministry of New and Renewable Energy, is driving pilot projects in the steel industry with a significant budget allocation for promoting green hydrogen. The focus areas of the scheme include developing commercially viable technologies for hydrogen utilization, such as producing DRI using 100% hydrogen, reducing coal/coke consumption in Blast Furnace, and gradually substituting natural gas with hydrogen in DRI making units. The objectives are to enhance technological expertise, validate economic feasibility, and ensure safe operations of hydrogen-based steel production. Overall, this initiative demonstrates a positive sentiment towards embracing green hydrogen for a more sustainable and low-carbon steel production process.
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