Revolutionizing India's Steel Sector with Green Hydrogen
Key Ideas
  • India's steel sector is aiming to decarbonize by integrating green hydrogen, requiring significant investments and policy backing by 2070.
  • Key technologies like alkaline electrolysis and biomass gasification with carbon capture are driving green hydrogen production in India.
  • The adoption of green hydrogen in steelmaking can lead to a substantial reduction in CO2 emissions, especially through the hydrogen-based DRI-EAF route.
  • Government incentives, strategic investments, and cost reductions in hydrogen production are essential for the economic viability of low-carbon steel adoption.
India's steel sector is undergoing a significant transformation through the adoption of green hydrogen to achieve decarbonization targets by 2070. The integration of green hydrogen technologies, including alkaline electrolysis and biomass gasification with carbon capture, is set to revolutionize steel production processes in India. This shift towards hydrogen-based steelmaking presents a promising opportunity to drastically reduce CO2 emissions, particularly through methods like hydrogen-based direct reduced iron (DRI) and electric arc furnace (EAF) route. The country is investing in green hydrogen production infrastructure, aiming to become a global leader in this field by targeting five million metric tons annually by 2030. By partially replacing conventional fuels and substituting natural gas with green hydrogen, India is exploring various applications of industrial hydrogen in steelmaking. Industry trials are already showcasing the feasibility of integrating H2-DRI in steel production, which is crucial for India's net-zero steel targets. However, the transition to green hydrogen requires substantial investments and policy support to make low-carbon steel economically viable. The report emphasizes the importance of production-linked incentive schemes, tax benefits, public-private partnerships, and a comprehensive green steel policy to facilitate the adoption of green hydrogen technologies. Although current production costs of green hydrogen are higher than conventional hydrogen, advancements in decarbonization technologies are expected to reduce costs significantly by 2030. Despite the potential benefits of green hydrogen, challenges like initial investment costs, infrastructure development, supply chain logistics, and skill development need to be addressed for successful integration into the steel sector. Overall, the shift towards clean energy steel technologies in India's steel sector not only reduces emissions but also positions Indian producers competitively in the global market.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.