India's Push for Green Hydrogen in Steel Sector
Key Ideas
  • The Indian government is auctioning Rs. 455 crore ($54m) to promote the use of hydrogen in the steel and iron sector.
  • MECON has invited proposals for hydrogen injection in DRI pilot plants and existing blast furnaces to reduce coal consumption.
  • Bidders will receive funding for up to 70% of the total project cost for the first pilot, excluding hydrogen production and land costs.
  • India's Ministry of New & Renewable Energy plans to use green hydrogen in the shipping and steel sectors, allocating Rs. 570 crores ($68.6m).
The Indian government has announced an auction to advance the use of hydrogen in the steel and iron sector. MECON, the Scheme Implementing Agency, is seeking proposals for hydrogen injection in DRI pilot plants and existing blast furnaces to reduce coal consumption. Bidders will be funded up to 70% of the total project cost for the first pilot, excluding hydrogen production and land expenses. India's Ministry of New & Renewable Energy has also set plans to utilize green hydrogen in the shipping and steel industries, with a budget of Rs. 570 crores ($68.6m). The aim is to blend hydrogen into steel plant processes gradually, starting with a small percentage. The stainless steel plant Jindal Stainless (JSL) has already begun using green hydrogen produced on-site through an alkaline electrolyser and solar energy. Additionally, training modules like Class of H2 are being developed to bridge the skills gap in the hydrogen sector, covering various aspects of hydrogen production and storage.
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