India's Steel Sector Aims for Green Hydrogen Revolution by 2070
Key Ideas
  • India's steel sector targets decarbonization through green hydrogen steel adoption by 2070, requiring substantial investment and policy backing.
  • Key technologies like alkaline electrolysis and biomass gasification with carbon capture are pivotal for green hydrogen production in the steel sector.
  • Economic feasibility is crucial for low-carbon steel adoption, with the need for production-linked incentives, tax benefits, and public-private partnerships highlighted.
  • Challenges include high initial investment costs, infrastructure development needs, supply chain optimization, and skill development in hydrogen technology.
India's steel sector is embarking on a transformative journey towards sustainability by aiming to decarbonize through the adoption of green hydrogen steel by 2070. This shift necessitates significant investments and policy support to integrate green hydrogen into steel production processes. The utilization of green hydrogen in steelmaking has the potential to substantially reduce CO2 emissions, especially through the hydrogen-based direct reduced iron (DRI) and electric arc furnace (EAF) routes. India is actively advancing its green hydrogen production infrastructure by transitioning to renewable-powered electrolysis methods. The National Hydrogen Mission, initiated in 2021, aims at positioning India as a global leader in green hydrogen production, targeting five million metric tons annually by 2030. Key technologies driving this transition include alkaline electrolysis, biomass gasification with carbon capture, and solid oxide electrolysis. Hydrogen steelmaking can revolutionize traditional processes by partially replacing conventional fuels, reducing coke consumption, and substituting natural gas with green hydrogen in different stages of steel production. The hydrogen-based DRI electric arc furnace (EAF) route is anticipated to play a vital role in India's net-zero steel targets by 2070, with industry trials showcasing the feasibility of H2-DRI integration. To make the transition to low-carbon steel economically viable, the sector requires substantial investments, estimated at US$297-304 billion by 2070. The report emphasizes the importance of production-linked incentive schemes, tax benefits, public-private partnerships, and a comprehensive green steel policy to support green hydrogen adoption. Despite challenges like high initial costs, infrastructure development needs, and supply chain optimization, the projected reduction in hydrogen costs and advancements in technology present a positive outlook for India's green hydrogen revolution in the steel sector.
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