Government of India has unveiled guidelines for conducting pilot projects aimed at utilizing green hydrogen in the steel sector. The initiative, titled “Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Steel Sector under the National Green Hydrogen Mission,” was introduced by the Ministry of New & Renewable Energy (MNRE) on February 2, 2024.
Under the National Green Hydrogen Mission, MNRE will spearhead pilot projects in the Steel Sector, focusing on replacing fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives. The Ministry of Steel and designated Implementing Agencies will collaborate to implement these projects, targeting three key areas:
- Direct Reduced Ironmaking Process: Exploring the integration of hydrogen in the ironmaking process to reduce emissions.
- Blast Furnace Operations: Investigating the potential of hydrogen in blast furnace operations for enhanced efficiency and reduced carbon footprint.
- Gradual Substitution of Fossil Fuels: Gradually phasing out fossil fuels and transitioning to green hydrogen in steel production processes.
- Additionally, the scheme encourages innovative applications of hydrogen for carbon emissions reduction in iron and steel production.
Acknowledging the current higher costs of green hydrogen, the guidelines propose a phased approach, starting with the blending of a small percentage of green hydrogen in steelmaking processes. Over time, as technology advances and cost-economics improve, the blending proportion will increase progressively. Furthermore, upcoming steel plants are urged to be designed to accommodate green hydrogen, ensuring their readiness to participate in low-carbon steel markets globally.
The scheme will be executed with a total budgetary outlay of Rs. 455 crores until the fiscal year 2029-30. The adoption of green hydrogen in the steel sector is anticipated to yield several benefits, including:
- Development of necessary infrastructure for green hydrogen utilization in the iron and steel industry.
- Establishment of a robust green hydrogen ecosystem in the steel sector.
- Reduction in production costs of green hydrogen over time.
- Significant contribution to India’s goal of becoming self-reliant through clean energy and leading the global Clean Energy Transition.
The National Green Hydrogen Mission, launched on January 4, 2023, with an initial outlay of Rs. 19,744 crores up to the fiscal year 2029-30, aims to accelerate India’s clean energy transition. By fostering innovation, reducing fossil fuel dependence, and assuming leadership in green hydrogen technology and market dynamics, the mission aligns with India’s vision for a sustainable and self-sufficient future.
India’s commitment to green hydrogen in the steel sector underscores its dedication to sustainable development and positions the country as a key player in the global clean energy landscape.
