Centre Sanctions Three Pilot Projects for Green Hydrogen in Steel Production

By Bureau The News Hashtag On Oct 18, 2024 1,005

New Delhi: As part of the National Green Hydrogen Mission, the Union Government has sanctioned three groundbreaking pilot projects aimed at using hydrogen in steel production. These initiatives are part of the country’s effort to decarbonize the steel sector and promote clean energy alternatives. The Ministry of New and Renewable Energy (MNRE) had earlier issued guidelines for implementing pilot projects in the steel sector under the mission, targeting the advancement of technologies for utilizing green hydrogen in steelmaking.

The objective of these pilot projects is to demonstrate the technical feasibility, performance, and economic viability of green hydrogen-based steel production, which could eventually lead to a significant reduction in carbon emissions from the iron and steel industry. By evaluating the operational safety and technical aspects of using green hydrogen, the projects aim to revolutionize steel production, reduce dependence on fossil fuels, and promote low-carbon alternatives.

The three sanctioned pilot projects will focus on different technological approaches:

Matrix Gas and Renewables Ltd (Consortium members: Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar, and Metsol AB, Sweden) – This project will establish a pilot plant with a capacity of 50 tonnes per day (TPD).
Simplex Castings Ltd (Consortium members: BSBK Pvt. Ltd., Ten Eight Investment, and IIT Bhilai) – This project will set up a 40 TPD pilot plant.
Steel Authority of India Ltd (SAIL) (Ranchi) – SAIL’s project will establish the largest of the three plants with a capacity of 3,200 TPD.

The projects will cover three key components: producing direct reduced iron (DRI) using 100% hydrogen through vertical shafts, reducing coal and coke consumption in blast furnaces by using hydrogen, and injecting hydrogen into vertical shaft-based DRI units.

The Union Government has allocated Rs. 347 crore to support the implementation of these pilot projects, which are expected to be commissioned within the next three years. This initiative will pave the way for scaling up green hydrogen technologies in India, positioning the country as a leader in clean energy and low-carbon steel production.

Launched on January 4, 2023, with a budget of Rs. 19,744 crore up to FY 2029-30, the National Green Hydrogen Mission is part of India’s broader goal to achieve energy self-reliance (Aatmanirbhar Bharat) and contribute to the global clean energy transition. The mission is expected to significantly decarbonize India’s economy, reduce its dependence on fossil fuel imports, and elevate the country’s leadership in green hydrogen technology.

National Green Hydrogen Mission