Government of India Unveils Guidelines for Green Hydrogen Pilot Projects in Steel Sector
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.
February 03, 2024. By Abha Rustagi
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 three identified thrust areas for these pilot projects in the steel sector include the use of hydrogen in the Direct Reduced Ironmaking process, the integration of hydrogen in blast furnaces, and the gradual substitution of fossil fuels with green hydrogen. The scheme also supports innovative uses of hydrogen to reduce carbon emissions in iron and steel production.
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 scheme also welcomes greenfield projects aiming for 100 percent green steel.
With a total budgetary outlay of INR 455 crores until FY 2029-30, the scheme aims 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.
Launched on January 4, 2023, with an outlay of INR 19,744 crores up to FY 2029-30, the National Green Hydrogen Mission aligns with India's goal to achieve self-reliance through clean energy, marking a significant step towards decarbonization, reduced dependence on fossil fuel imports, and global leadership in green hydrogen technology and markets.
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