Government has allocated ₹455 crore as central financial assistance until the fiscal year 2029-30 to integrate green hydrogen into the steel industry sector. On February 2, 2024, the ministry of new and renewable energy released scheme guidelines for piloting green hydrogen utilization in the sector as part of the national green hydrogen mission.
The scheme aims to promote the adoption of 100% hydrogen in the direct reduced iron making process, incorporate hydrogen into blast furnace operations, progressively substitute fossil fuels with green hydrogen in the DRI process, and conduct pilot projects to enable decarbonization in iron and steel production. Its objectives include advancing technologies and knowledge for utilising green hydrogen in steelmaking, addressing existing gaps, supporting pilot projects, validating technical feasibility, and evaluating economic viability.
The pilot projects are expected to uncover operational challenges and provide insights for future scaling and commercial deployment of green hydrogen in the iron and steel sector. As reported by CEO Insights, the initiative also anticipates developing infrastructure such as refueling stations, storage, and distribution networks to establish a green hydrogen ecosystem in the steel industry. As the production cost of green hydrogen is projected to decline, its utilization in the steel industry is poised to increase.
