Union Government Sanctions Green Hydrogen Pilot Projects for Steel Production
Key Ideas
  • Union Government in India has sanctioned three pilot projects for utilizing green hydrogen in steel production as part of the National Green Hydrogen Mission.
  • These projects aim to demonstrate the feasibility, viability, and performance of green hydrogen-based steelmaking processes, ultimately leading to low-carbon iron and steel production.
  • The pilot projects, with a total financial support of Rs. 347 Crore, are expected to be commissioned in the next 3 years, contributing to India's goal of becoming self-reliant in clean energy.
  • The National Green Hydrogen Mission, with an outlay of Rs. 19,744 crores, will significantly decarbonize the economy, reduce fossil fuel imports, and position India as a leader in Green Hydrogen technology.
The Ministry of New and Renewable Energy in India has announced the sanctioning of three pilot projects as part of the National Green Hydrogen Mission. These projects are focused on utilizing green hydrogen in steel production, with the aim of exploring advanced technologies and processes for steelmaking. The objectives include demonstrating the safe and secure operations of green hydrogen-based steelmaking, validating technical feasibility and performance, and evaluating economic viability to enable low-carbon iron and steel production. The pilot projects will involve producing DRI using 100% hydrogen, reducing coal/coke consumption in blast furnaces, and injecting hydrogen in DRI making units. The Ministry has sanctioned these projects to Matrix Gas and Renewables Ltd, Simplex Castings Ltd, and Steel Authority of India Ltd, with varying plant capacities. The total financial support from the Government of India for these projects amounts to Rs. 347 Crore. These pilot projects are anticipated to be operational within the next 3 years, paving the way for the scaling up of green hydrogen technologies in India. The National Green Hydrogen Mission, launched in January 2023 with a substantial budget, aims to make India self-reliant in clean energy and lead the global Clean Energy Transition. By promoting green hydrogen, the Mission seeks to decarbonize the economy, reduce dependency on fossil fuel imports, and position India as a technology and market leader in the green hydrogen sector.
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