India’s ministry for new energy and renewables (MNRE) has unveiled guidelines for implementation of pilot projects focused on integrating the use of green hydrogen in the steel sector, a ministry statement said on Monday, February 5.
As part of the National Green Hydrogen Mission, MNRE, in collaboration with the ministry of steel and nominated Implementing Agencies, will initiate pilot projects aimed at substituting fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives in the steel sector, the statement said.
The three identified thrust areas for these pilot projects in the steel sector include the use of hydrogen in the direct reduced iron (DRI) making process, the integration of hydrogen in blast furnaces, and the gradual substitution of fossil fuels with green hydrogen. The scheme will also support innovative uses of hydrogen to reduce carbon emissions in iron and steel production, the statement added.
The government has created a corpus of $55 million to be spent until fiscal year 2029-30 under the scheme aiming to facilitate the development of necessary infrastructure for incorporating green hydrogen into the iron and steel industry, fostering the establishment of a green hydrogen ecosystem. The utilization of green hydrogen in the steel sector is anticipated to grow over time, accompanied by a reduction in production costs, it said.
Considering the current higher costs of green hydrogen, the guidelines suggest an incremental approach, allowing steel plants to begin by blending a small percentage of green hydrogen in their processes. The blending proportion can then be increased progressively as cost-economics improve and technology advances. The guidelines emphasize that upcoming steel plants should have the capability to operate with green hydrogen, positioning them to participate in future global low-carbon steel markets, the ministry said.
