Ministry of New and Renewable Energy (MNRE) has officially shared guidelines lately for pilot projects using Green Hydrogen in the steel sector.
India was the largest producer of Direct Reduced Iron (DRI) or Sponge Iron in the world in January as reported in December 2021, producing 39.04 MT Sponge Iron with a growth rate of 16.2% over the corresponding period last year (CPLY).
Alongside, India will be the 2nd largest consumer of finished steel in 2021 (106.23 MT), preceded by China as the largest steel consumer as per the World Steel Association.
Three key areas have been identified for the pilot projects in the steel sector: the use of Hydrogen in the Direct Reduced Ironmaking process, using Hydrogen in Blast Furnaces, and gradually substituting fossil fuels with Green Hydrogen.
The scheme also supports innovative pilot projects using hydrogen to reduce carbon emissions in iron and steel production.
Last year in July, JSW Energy, a subsidiary of Indian conglomerate JSW, shared its intention to commission the largest green hydrogen plant within 18-24 months.
JSW Energy’s green hydrogen plant is reported to be the country’s largest green hydrogen plant to supply volumes of gas for green steel production.
This new green hydrogen scheme, a part of the National Green Hydrogen Mission, aims to replace fossil fuels and fossil fuel-based materials with eco-friendly Green Hydrogen and other green resources.
Steel plants owing to the current higher costs of green hydrogen, could begin by blending a small percentage of Green Hydrogen in their processes, gradually increasing the proportion as cost economics improve and technology advances.
The scheme by MNRE, which is part of the National Green Hydrogen Mission, aims to replace fossil fuels and fossil fuel-based materials with eco-friendly Green Hydrogen and its derivatives.
Steel plants owing to the current higher costs of green hydrogen, could begin by blending a small percentage of Green Hydrogen in their processes, gradually increasing the proportion as cost economics improve and technology advances.
The National Green Hydrogen Mission was launched on January 4, 2023 with an outlay of Rs 19,744 crore until FY 2029-30.
The National Green Hydrogen Mission aligns with India’s goal of self-reliance through clean energy alongside the ongoing boom in the renewable energy and solar industry.
The mission aims to plummet the dependency on fossil fuels imports and production while promoting clean and renewable energy courses including Green Hydrogen.
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