The GoI has introduced new guidelines promoting the gradual use of green hydrogen in place of fossil fuels in the steel sector.
The MNRE issued guidelines for pilot projects utilizing Green Hydrogen in the steel sector under the National Green Hydrogen Mission.
The guidelines suggest the use of hydrogen in blast furnaces to directly decrease iron production. They also suggest blending a small percentage of green hydrogen in existing plants, requiring future plants to operate with green hydrogen, and considering 100% green steel projects.
The guidelines:
The Scheme will be implemented with a total budgetary outlay of Rs. 455 crores till FY2029-30.
MNRE plans to implement pilot projects in the sector under the National Green Hydrogen Mission, replacing fossil fuels and feedstock with Green Hydrogen and its derivatives. The Ministry of Steel and the nominated implementing agencies will execute these pilot projects.
The guidelines suggest that plants could initially incorporate a small percentage of green hydrogen into their processes, gradually increasing the proportion over time. The guidelines aim to improve cost economics and technology in steel plants, enabling them to operate with green hydrogen and consider 100% green steel projects.
Three thrust areas have been identified for pilot projects in the steel sector. Hydrogen is being utilized in various processes such as Direct Reduced Ironmaking, Blast Furnace, and gradually replacing fossil fuels with Green Hydrogen. The scheme will facilitate pilot projects utilizing innovative hydrogen usage to decrease carbon emissions in iron and steel production.
The use of green hydrogen and its derivatives in the steel sector, through the proposed pilot projects, will lead to the development of the necessary infrastructure for the use of Green Hydrogen in the Iron & Steel industry. With the anticipated decrease in production costs, the use of green hydrogen in the steel sector is anticipated to grow over time.
It must be noted that the National Green Hydrogen Mission was launched on 04th January 2023 with an outlay of Rs. 19,744 crores up to FY 2029-30. It will contribute to India’s goal to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to significant decarbonization of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.