India's Green Hydrogen Initiative in the Steel Sector: Funding Pilot Projects and Future Prospects
Key Ideas
  • India is seeking proposals for pilot projects in the iron and steel sector utilizing hydrogen, with funding from the National Green Hydrogen Mission.
  • Funding for these projects can cover up to 70% of the total project cost and aims to reduce coal/coke consumption and maximize hydrogen usage.
  • The initiative, with an allocated budget of Rs. 455 crore for the steel sector, targets to make India a global hub for green hydrogen production and export by leveraging falling renewable energy costs.
  • The partnership between Tata Steel and Monash University for decarbonization and innovative manufacturing technologies highlights the industry's commitment to sustainability and achieving Net Zero targets.
India is taking significant steps towards integrating hydrogen into the iron and steel sector. The country has announced a call for pilot projects under the National Green Hydrogen Mission, with a focus on reducing carbon emissions and enhancing sustainability in steel production. Various funding opportunities are available for projects involving the injection of hydrogen into Direct Reduced Iron (DRI) pilot plants and existing blast furnaces. The overall objective is to make the steel industry more environmentally friendly and cost-competitive by leveraging green hydrogen technologies. The introduction of carbon credits and potential market barriers for carbon-intensive steel production further underscore the commitment to transitioning towards greener practices. India's steel industry, accounting for a notable share of GDP, recognizes the importance of decarbonization efforts to mitigate its environmental impact. By investing in green hydrogen-based steelmaking, the sector aims to address the pressing issue of carbon emissions while also aligning with global sustainability goals. Moreover, collaborations between industry leaders like Tata Steel and academic institutions such as Monash University signify a collective push towards innovation and sustainability. Initiatives like setting up a Center for Innovation on Environment and Intelligent Manufacturing highlight the industry's proactive approach to adopting advanced technologies and driving positive change. As the steel industry navigates the transition towards green hydrogen, there is a consensus on the need for cost reduction and policy incentives to facilitate a smoother shift. While challenges exist in terms of the current cost of green hydrogen technologies, stakeholders remain optimistic about the future prospects of hydrogen-based steel production in India.
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