India has taken a significant step towards decarbonizing its steel industry by launching a tender for green steel pilots utilizing hydrogen (H2).
This initiative, backed by a $54.4 million budget allocation until 2030, aims to explore the feasibility of hydrogen-based steelmaking processes.
The tender outlines support for three distinct types of pilot projects:
- 100% Hydrogen-Based Direct Reduced Iron (DRI) Production: This method completely eliminates fossil fuels from the DRI process, a crucial step in traditional steel production. However, the technology remains in its early stages of development, and its scalability and cost-effectiveness need further evaluation.
- Hydrogen Injection in Existing Blast Furnaces: This approach aims to reduce reliance on coal in existing blast furnaces by injecting H2. While it offers a quicker path to decarbonization for established plants, the optimal hydrogen blending ratio requires careful optimization to ensure process efficiency and product quality.
- Hydrogen Blending in Existing DRI Plants: Blending natural gas with hydrogen in existing DRI facilities represents a gradual decarbonization strategy. This method offers a less disruptive but potentially slower path towards complete green steel production.
Several leading steel producers globally are actively exploring hydrogen-based steelmaking technologies. Initiatives like the Hydrogen Breakthrough Coalition and the HYBRIT project in Europe demonstrate the growing momentum towards green steel. India’s pilot tender aligns with this global trend and positions the country for potential future leadership in this field.
India’s green steel pilot tender represents a crucial first step towards decarbonizing its steel industry. While technical and economic challenges remain, the initiative demonstrates the country’s commitment to exploring innovative solutions and aligning with global efforts in this critical sector. The success of these pilots will depend on overcoming cost barriers, securing adequate renewable energy resources, and advancing hydrogen technologies.
