Indian Government Sanctions Pilot Projects for Green Hydrogen in Steel Production

India's government has sanctioned three pilot projects under the National Green Hydrogen Mission to revolutionize steel production using green hydrogen, advancing towards a low-carbon economy.

In a significant move towards decarbonizing India's industrial sector, the Government of India has sanctioned three pilot projects to explore the use of green hydrogen in steel production as part of the National Green Hydrogen Mission. These projects aim to revolutionize the steelmaking process, contributing significantly to India's clean energy goals and reducing carbon emissions from one of the most energy-intensive industries.

Pilot Projects to Revolutionize Steel Production with Green Hydrogen

The Ministry of New and Renewable Energy (MNRE) had earlier issued guidelines for the implementation of pilot projects in the steel sector under the Green Hydrogen Mission. These initiatives are aimed at identifying and demonstrating advanced technologies for the safe and secure utilization of green hydrogen in steelmaking. The pilot projects will not only validate the technical feasibility and economic viability of hydrogen-based steel production but also pave the way for large-scale adoption of low-carbon iron and steel processes in India.

The three sanctioned pilot projects are:

• Matrix Gas and Renewables Ltd – In collaboration with Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar, and Metsol AB (Sweden), Matrix Gas and Renewables will set up a pilot plant with a capacity of 50 tons-per-day (TPD).

• Simplex Castings Ltd – Partnering with BSBK Pvt. Ltd., Ten Eight Investment, and IIT Bhilai, Simplex Castings Ltd will establish a 40 TPD pilot plant.

• Steel Authority of India Ltd (Ranchi) – With the largest capacity of 3200 TPD, this project marks a major step in green hydrogen-based steel production.

Government Support and Technological Advancements

These pilot projects will focus on three key components: the use of 100% hydrogen in direct reduced iron (DRI) production using vertical shafts, the application of hydrogen in blast furnaces to reduce coal and coke consumption, and the injection of hydrogen in DRI-making units.

The Indian government has committed a financial outlay of ₹347 crore to support these projects, which are expected to be operational within the next three years. Once commissioned, these pilot projects will serve as a foundation for scaling up hydrogen-based technologies in the Indian steel industry.

About the National Green Hydrogen Mission

Launched on January 4, 2023, the National Green Hydrogen Mission aims to decarbonize India's economy and reduce its dependence on fossil fuel imports. With a budget of ₹19,744 crore allocated up to FY 2029-30, the mission aligns with India's commitment to becoming Aatmanirbhar (self-reliant) through clean energy solutions. By fostering innovation and establishing India as a leader in green hydrogen technologies, the mission serves as a beacon for global clean energy transitions.