Government Approves Green Hydrogen Pilot Projects in Steel Sector
Key Ideas
  • The Union government in India has sanctioned three pilot projects under the National Green Hydrogen Mission to implement the use of Green Hydrogen in steel production.
  • The Ministry of New and Renewable Energy aims to identify advanced technologies for utilizing Green Hydrogen in steelmaking through these pilot projects, focusing on safety, performance, and economic viability.
  • The three pilot projects will involve different aspects such as producing DRI using 100% Hydrogen, reducing coal/coke consumption in Blast Furnace, and injecting Hydrogen in vertical shaft based DRI making unit.
  • The total financial support provided by the government for these pilot projects in the steel sector will amount to Rs 347 crore, with expectations of commissioning within the next three years.
The Union government of India has approved three pilot projects as part of the National Green Hydrogen Mission to introduce Green Hydrogen in steel production. The Ministry of New and Renewable Energy had previously issued guidelines for implementing pilot projects in the steel sector under this mission. The main objectives of the scheme are to explore advanced technologies for utilizing Green Hydrogen in steelmaking through these pilot projects. The projects aim to demonstrate the safe and secure operations of green hydrogen-based steelmaking processes, evaluate technical feasibility and performance, and assess economic viability to facilitate low-carbon iron and steel production. The sanctioned projects include producing DRI using 100% Hydrogen, reducing coal/coke consumption in Blast Furnace, and injecting Hydrogen in a vertical shaft-based DRI making unit. The government will provide a total financial support of Rs 347 crore for these projects in the steel sector, with the expectation of commissioning them within the next three years. The National Green Hydrogen Mission, initiated in January 2023, with an allocated budget of Rs 19,744 crore up to FY 2029-30, aims to contribute to India's self-reliance through clean energy and lead the country in the global clean energy transition. The mission is expected to significantly decarbonize the economy, decrease dependence on fossil fuel imports, and position India as a technology and market leader in Green Hydrogen.
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