MECON Launches RFP for Green Hydrogen Injection in Steel Industry's Blast Furnaces and DRI Units

MECON invites bids for green hydrogen injection projects in steel production as part of India's National Hydrogen Mission.

In a major move towards decarbonizing the steel industry, MECON, a Government of India enterprise, has issued a request for proposal (RFP) for pilot projects focused on green hydrogen (GH2) injection into existing blast furnaces and direct reduced iron (DRI) units. This initiative is part of India’s National Hydrogen Mission, aimed at reducing reliance on fossil fuels and moving towards cleaner, more sustainable industrial practices.

Green Hydrogen: A Key to Cleaner Steel Production

MECON’s pilot project targets two major areas: injecting green hydrogen into blast furnaces to reduce coal and coke consumption, and utilizing hydrogen in vertical shaft DRI-making units as a partial replacement for natural gas. The ultimate goal is to maximize the use of green hydrogen to minimize carbon emissions in steel production.

The RFP submission deadline is set for October 28, 2024, with bid openings scheduled for October 29, 2024. Interested bidders are required to submit detailed project reports that include designs, engineering plans, and procurement details for systems capable of injecting hydrogen into existing blast furnaces and DRI-making units. The hydrogen injection system will be integrated with the current infrastructure of steelmaking units.

National Hydrogen Mission’s Role in Revolutionizing Steel Sector

The RFP forms part of India’s broader National Hydrogen Mission, a pivotal initiative led by the Ministry of New and Renewable Energy (MNRE). This mission is designed to explore the potential of green hydrogen in various sectors, particularly in industries heavily reliant on fossil fuels, such as steelmaking. The government has allocated a budget of Rs. 455 crore for the Green Hydrogen Mission in the steel industry, running through the financial year 2029-30.

The pilot projects, implemented through the Ministry of Steel, will assess the viability of green hydrogen as a cleaner alternative in the steel production process. This could mark the beginning of a transformative shift in one of the most carbon-intensive industries in the world.

Eligibility and Bidding Process

Bidders for the project must be public or private sector enterprises operating blast furnaces or vertical shaft DRI-making units in India. The proposals must include an assessment of the existing infrastructure for hydrogen injection and a comprehensive concept report outlining hydrogen consumption and capital costs. Successful bidders must also arrange for the supply of hydrogen or provide a hydrogen consumption estimate to enable MNRE to select green hydrogen producers through a competitive bidding process.

Additionally, companies like Jindal Steel & Power (JSPL) are already making strides in green hydrogen adoption. JSPL, alongside Jindal Renewables, has announced plans to invest in green hydrogen production for steelmaking in Angul, Odisha. JSPL aims to incorporate hydrogen into its DRI units, highlighting a broader industry trend toward greener steel production.