Union Government Sanctions Pilot Projects for Green Hydrogen in Steel Production
Key Ideas
  • The Union Government has approved three pilot projects under the National Green Hydrogen Mission to utilize green hydrogen in steel production, aiming for low-carbon iron and steel production.
  • These pilot projects will focus on advanced technologies like producing DRI using 100% hydrogen, utilizing hydrogen in blast furnaces to reduce coal/coke consumption, and injecting hydrogen in DRI making units.
  • Financial support of Rs. 347 Crore has been allocated by the Indian Government for these projects, with participants including Matrix Gas and Renewables Ltd, Simplex Castings Ltd, and Steel Authority of India Ltd.
  • The National Green Hydrogen Mission, launched in January 2023, is set to contribute towards India's self-reliance in clean energy, decarbonization of the economy, and reducing dependence on fossil fuel imports.
The Union Government in India, as part of the National Green Hydrogen Mission, has sanctioned three pilot projects in the steel sector to explore the use of green hydrogen in steel production. The objective of these projects is to identify advanced technologies for incorporating green hydrogen in steelmaking processes. The projects aim to showcase the safe and secure operations of green hydrogen-based steel-making, validate technical feasibility and performance, and assess the economic viability of such processes, ultimately leading to the production of low-carbon iron and steel. The projects include producing DRI using 100% hydrogen, using hydrogen in blast furnaces to reduce coal/coke consumption, and injecting hydrogen in DRI making units. The Ministry of New and Renewable Energy has approved three pilot projects with different capacities and consortium members, totaling Rs. 347 Crore in financial support from the Government of India. These projects are expected to be operational within the next three years, contributing to the scaling up of green hydrogen technologies in India. The National Green Hydrogen Mission, with an allocated budget of Rs. 19,744 crores until FY 2029-30, aims to make India self-reliant in clean energy and play a leading role in the global Clean Energy Transition. It is anticipated that the mission will result in significant decarbonization of the economy, reduce reliance on fossil fuel imports, and position India as a leader in green hydrogen technology and market.
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