India Steel Ministry Pushes for Hydrogen-Based DRI Units for Speciality Steel Production
Key Ideas
  • Union steel secretary advocates for a second round of the PLI scheme for speciality steel production, emphasizing the importance of reducing carbon emissions.
  • Application filed for a national consortium for hydrogen-based DRI units, highlighting the shift towards using hydrogen as a primary fuel for steel-making.
  • India aims to leverage economies of scale in hydrogen production to make it a more cost-effective fuel option for the steel industry, similar to the evolution seen in solar power costs.
  • Steel industry target to reduce carbon emissions from 2.5kg to 2.1kg per ton by 2030, aligning with global standards, where the global benchmark is below 2kg per ton.
In Kolkata, the steel ministry in India is strongly advocating for the implementation of hydrogen-based direct reduced iron (DRI) units to enhance the production of speciality steel. Union steel secretary, Nagendra Nath Sinha, highlighted the significance of reducing carbon emissions in the steel industry during an interaction with members of the Bharat Chamber of Commerce. He mentioned the existing Production-Linked Incentive (PLI) scheme, which has seen 57 Memorandums of Understanding signed with an investment proposal of Rs 29,500 crore across 25 verticals. Sinha emphasized the need for accelerating efforts to decrease carbon emissions and mentioned an application for a national consortium to promote hydrogen-based DRI units. While acknowledging the initial cost challenges of using hydrogen as fuel, he expressed confidence in India's ability to achieve economies of scale in hydrogen production, akin to the dramatic cost reductions witnessed in solar power. The steel sector aims to lower carbon emissions from the current 2.5kg per ton to 2.1kg by 2030, aligning with the lower global benchmark of below 2kg per ton. The steel industry accounts for 12% of total carbon emissions in India. Additionally, concerns were raised about the significant amounts of steel being imported from countries like China, Vietnam, and Indonesia. The article underscores the importance of transitioning towards hydrogen as the primary fuel for steel-making to mitigate carbon emissions effectively.
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