Three Steel Sector Projects gets Approval under Green Hydrogen Mission

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As part of the national green hydrogen mission, the government approved three pilot projects focused on utilizing hydrogen in steel production. Previously, the ministry of new and renewable energy had released guidelines for the implementation of pilot projects in the steel sector under the mission.

The key objective of the initiative is to explore advanced technologies for incorporating green hydrogen in steelmaking through pilot programs. The projects purpose is to demonstrate the safe and secure operation of hydrogen-based steel production processes, assess their technical feasibility, and evaluate their economic viability.

The goal is to contribute to low-carbon steel and iron production. Proposals were invited for three key areas: production of direct reduced iron (DRI) using 100% hydrogen in a vertical shaft, reducing coal and coke consumption by using hydrogen in blast furnaces, and injecting hydrogen into vertical shaft-based DRI production units.

Following a review of the submitted proposals, the ministry of new and renewable energy has sanctioned three pilot projects in the steel sector. These include: Matrix Gas and Renewables Ltd (with consortium members Gensol Engineering Ltd, IIT Bhubaneswar, and Metsol AB from Sweden) for a pilot plant with a 50-ton-per-day (TPD) capacity, Simplex Castings Ltd (in collaboration with BSBK Pvt. Ltd., Ten Eight Investment, and IIT Bhilai) for a pilot plant with a 40 TPD capacity, and the Steel Authority of India Ltd (SAIL), Ranchi, for a plant with a 3,200 TPD capacity.

The government has allocated a total of ₹347 crore in financial support for the projects, which are expected to be commissioned within the next three years. As reported by smestreet.in, the pilot projects are set to pave the way for the wider adoption of green hydrogen technologies in India’s steel production sector.