These pilot projects will be conducted in collaboration with major steel companies and technology providers. The primary goal is to replace coking coal with hydrogen in the reduction process, which could significantly lower the carbon footprint of steel production. Hydrogen, when used as a reducing agent, produces water instead of carbon dioxide, making it a cleaner alternative.

The transition to green steel is crucial for India, which is the world's second-largest steel producer. The traditional steel-making process is highly carbon-intensive, and switching to hydrogen could help the country meet its climate targets. The government is also exploring policies and incentives to encourage the adoption of green steel technologies.

The pilot projects will provide valuable data on the technical and economic viability of using hydrogen in steel production. Success in these trials could pave the way for large-scale implementation and set a precedent for other industries to follow suit. Additionally, the move aligns with global trends, as many countries are investing in hydrogen as part of their decarbonization strategies.

India's commitment to green steel is a step towards sustainable industrial practices, aiming to balance economic growth with environmental responsibility.