Government Sanctions Three Pilot Projects for Green Hydrogen in Steel Production under National Green Hydrogen Mission

To promote green hydrogen in the steel sector, the Union Government has sanctioned three pilot projects as part of the National Green Hydrogen Mission. These projects aim to advance the use of hydrogen in steelmaking, contributing to low-carbon iron and steel production. Earlier, the Ministry of New and Renewable Energy (MNRE) had issued guidelines to implement these pilot projects, emphasizing the exploration of advanced technologies and economic viability for green hydrogen-based steelmaking.

The objectives of the scheme include demonstrating safe and efficient green hydrogen-based steel production, validating the technical feasibility and performance of these technologies, and evaluating their potential to reduce carbon emissions in the sector. The pilot projects will focus on three key components:

1. Production of Direct Reduced Iron (DRI) using 100% hydrogen with vertical shaft technology.
2. Use of hydrogen in blast furnaces to lower coal and coke consumption.
3. Injection of hydrogen into vertical shaft-based DRI production.

Following a thorough evaluation of the proposals, the MNRE has sanctioned the following pilot projects:

• Matrix Gas and Renewables Ltd (Consortium members: Gensol Engineering Ltd, IIT Bhubaneswar, Metsol AB, Sweden) – with a pilot plant capacity of 50 tons-per-day (TPD).
• Simplex Castings Ltd (Consortium members: BSBK Pvt. Ltd., Ten Eight Investment, IIT Bhilai) – with a pilot plant capacity of 40 TPD.
• Steel Authority of India Ltd (SAIL), Ranchi – with a larger plant capacity of 3,200 TPD.

The total financial support allocated by the Government of India for these projects amounts to Rs. 347 crore. These pilot plants are expected to be commissioned over the next three years, setting the stage for the large-scale adoption of green hydrogen technologies in the Indian steel industry.

The National Green Hydrogen Mission, launched on January 4, 2023, with an outlay of Rs. 19,744 crore up to FY 2029-30, aims to contribute to India’s goal of becoming Aatmanirbhar (self-reliant) through clean energy. This mission is expected to significantly decarbonize the economy, reduce dependence on fossil fuel imports, and enable India to lead in green hydrogen technology and the global clean energy transition.

For further details, the official scheme guidelines can be accessed here.