India's MECON Calls for Green Hydrogen Pilot Projects in Steel Sector
Key Ideas
  • MECON, a government enterprise in India, has initiated a request for proposals for pilot projects on green hydrogen injection in blast furnaces and DRI-making units to reduce coal/coke consumption.
  • The projects aim to substitute natural gas with hydrogen in the steel sector, aligning with the National Hydrogen Mission to replace fossil fuels with green hydrogen.
  • Bidders need to meet specific criteria, including being a public sector undertaking or a private company operating in India and having a vertical shaft-based DRI-making unit.
  • Successful bidders will be required to provide a bank guarantee for 3% of the funding amount and are expected to contribute to the transition towards green hydrogen in the industry.
MECON, a prominent Indian government enterprise specializing in design, engineering, and consultancy services, has announced a call for proposals for pilot projects centered around the integration of green hydrogen in existing blast furnaces and direct reduced iron-making units. The main goal of these projects is to minimize coal and coke consumption by incorporating hydrogen into blast furnaces and substituting natural gas with hydrogen in DRI-making units. The initiative is aligned with the National Hydrogen Mission, an effort led by the Ministry of New and Renewable Energy to promote the adoption of green hydrogen and reduce reliance on fossil fuels in various sectors, including steel production. The pilot projects are set to be executed under the Ministry of Steel's supervision, with a substantial budget allocated to the steel sector's transition to green hydrogen until the financial year 2029-30. Interested bidders, whether public or private entities, must comply with specific eligibility criteria and provide detailed assessments of their existing infrastructure and capabilities for hydrogen injection. Additionally, successful bidders will need to arrange for hydrogen supply or propose consumption estimates for MNRE's consideration. Notably, recent commitments from companies like JSPL and Jindal Renewables to invest in green hydrogen production for steelmaking highlight a growing industry interest in sustainable energy practices. The move towards incorporating green hydrogen into steel production processes signifies a significant step towards achieving environmental sustainability and reducing carbon emissions within the steel sector.
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