Three Steel Sector Projects Approved Under Green Hydrogen Mission

As part of National Green Hydrogen Mission, the Union Government has sanctioned three pilot projects for use of Hydrogen in steel production. Earlier the Ministry of New and Renewable Energy had issued guidelines for Implementation of Pilot projects in Steel Sector under this Mission.

The objectives of the scheme were to identify advance technologies for utilizing green hydrogen in steelmaking, through pilot projects. These pilot projects can demonstrate safe and secure operations of green hydrogen-based steel making processes, validating technical feasibility and performance, evaluating their economic viability thereby leading to low-carbon iron and steel production. Accordingly, the proposals were invited for three components (i) Pilot project to produce DRI using 100 % Hydrogen using vertical shaft, (ii) Use of Hydrogen in Blast Furnace to reduce coal/ coke consumption and (iii) Injection of Hydrogen in vertical shaft based DRI making unit.

Based on the evaluations of the proposals received, the Ministry of New and Renewable Energy has sanctioned total three pilot projects in the steel sector, (a) Matrix Gas and Renewables Ltd (Consortium members: Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar, Metsol AB, Sweden) with pilot plant capacity 50 ton-per-day (TPD), (b) Simplex Castings Ltd (Consortium member: BSBK Pvt. Ltd., Ten Eight Investment, IIT Bhilai) with pilot plant capacity 40 TPD and  (c) Steel Authority of India Ltd (Ranchi) with plant capacity 3200 TPD.

The total financial support made available will be Rs. 347 Crore from the Government of India. These pilot projects are likely to be commissioned in next 3 years, paving way to the scaleup of such technologies in India.

The Scheme Guidelines can be accessed here.

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.