Govt issues pilot project guidelines for Green Hydrogen in Steel Sector
POWER & RENEWABLE ENERGY

Govt issues pilot project guidelines for Green Hydrogen in Steel Sector

The Government of India has come out with guidelines for undertaking pilot projects for using green hydrogen in the steel sector. The guidelines, named ?Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Steel Sector under the National Green Hydrogen Mission?, have been issued by the Ministry of New & Renewable Energy (MNRE) on February 2, 2024.

Under the National Green Hydrogen Mission, along with other initiatives, MNRE will implement pilot projects in the Steel Sector, for replacing fossil fuels and fossil fuel-based feedstock with Green Hydrogen and its derivatives. These pilot projects will be implemented through the Ministry of Steel and the Implementing Agencies nominated under this Scheme.

Three areas have been identified as thrust areas for the pilot projects in the steel sector. These are use of Hydrogen in Direct Reduced Ironmaking process; use of Hydrogen in Blast Furnace; and substitution of fossil fuels with Green Hydrogen in a gradual manner. The scheme will also support pilot projects involving any other innovative use of hydrogen for reducing carbon emissions in iron and steel production.

The scheme envisages that considering the higher costs of green hydrogen at present, steel plants could begin by blending a small percentage of green hydrogen in their processes, and increasing the blending proportion progressively, with improvement in cost-economics and advancement of technology. The guidelines also note that upcoming steel plants should be capable of operating with green hydrogen, thus ensuring that these plants are able to participate in future global low-carbon steel markets. The scheme will also consider greenfield projects aiming at 100% green steel.

The Scheme will be implemented with a total budgetary outlay of Rs 4.55 billion till FY 2029-30.

The use of Green Hydrogen and its derivatives in the steel sector, through the proposed pilot projects, will lead to the development of necessary infrastructure for use of Green Hydrogen in the Iron and Steel industry, resulting in establishment of a Green Hydrogen ecosystem in the steel sector. The utilisation of green hydrogen in the steel industry is expected to increase over the years, with the expected reduction in its production cost.

The National Green Hydrogen Mission was launched on January 4, 2023 with an outlay of Rs 197.44 billion up to FY 2029-30. It will contribute to India?s goal to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

The Government of India has come out with guidelines for undertaking pilot projects for using green hydrogen in the steel sector. The guidelines, named ?Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen in the Steel Sector under the National Green Hydrogen Mission?, have been issued by the Ministry of New & Renewable Energy (MNRE) on February 2, 2024. Under the National Green Hydrogen Mission, along with other initiatives, MNRE will implement pilot projects in the Steel Sector, for replacing fossil fuels and fossil fuel-based feedstock with Green Hydrogen and its derivatives. These pilot projects will be implemented through the Ministry of Steel and the Implementing Agencies nominated under this Scheme. Three areas have been identified as thrust areas for the pilot projects in the steel sector. These are use of Hydrogen in Direct Reduced Ironmaking process; use of Hydrogen in Blast Furnace; and substitution of fossil fuels with Green Hydrogen in a gradual manner. The scheme will also support pilot projects involving any other innovative use of hydrogen for reducing carbon emissions in iron and steel production. The scheme envisages that considering the higher costs of green hydrogen at present, steel plants could begin by blending a small percentage of green hydrogen in their processes, and increasing the blending proportion progressively, with improvement in cost-economics and advancement of technology. The guidelines also note that upcoming steel plants should be capable of operating with green hydrogen, thus ensuring that these plants are able to participate in future global low-carbon steel markets. The scheme will also consider greenfield projects aiming at 100% green steel. The Scheme will be implemented with a total budgetary outlay of Rs 4.55 billion till FY 2029-30. The use of Green Hydrogen and its derivatives in the steel sector, through the proposed pilot projects, will lead to the development of necessary infrastructure for use of Green Hydrogen in the Iron and Steel industry, resulting in establishment of a Green Hydrogen ecosystem in the steel sector. The utilisation of green hydrogen in the steel industry is expected to increase over the years, with the expected reduction in its production cost. The National Green Hydrogen Mission was launched on January 4, 2023 with an outlay of Rs 197.44 billion up to FY 2029-30. It will contribute to India?s goal to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

Next Story
Real Estate

Driven Opens Dubai’s Largest Real Estate Office in Downtown

Driven | Forbes Global Properties has officially inaugurated its new 43,000-sq-ft headquarters in Downtown Dubai, just steps away from the Burj Khalifa. Spread across two floors, the office now holds the distinction of being Dubai’s largest real estate workspace. The move follows the firm’s AED 505 million acquisition of Emaar Square Building 3 in November 2024. This strategic expansion marks a significant milestone in the company’s long-term growth plan and reflects its deepening commitment to the UAE’s evolving real estate market. As Dubai moves steadily toward becoming a tier-o..

Next Story
Resources

Johnson Controls Marks 140 Years of Innovation Globally

Johnson Controls (NYSE: JCI), the global leader in smart, healthy, safe and sustainable building solutions, is celebrating 140 years of innovation and global impact. Since its founding in 1885, the company has pioneered building advancements—from developing the first automatic sprinkler system to the first room thermostat—and today delivers a broad portfolio of HVAC systems, fire protection, and smart security solutions across the full building lifecycle. As Singapore celebrates SG60, marking 60 years of independence, Johnson Controls congratulates the nation and highlights its ongoin..

Next Story
Equipment

MHI to Supply Water Pumps for China’s Sanmen Nuclear Plant

Mitsubishi Heavy Industries, (MHI) has secured an order to supply four circulating water pumps (CWPs) for Units 5 and 6 of the Sanmen Nuclear Power Plant in China. The order has been placed in collaboration with Dongfang Electric Machinery Co. (DFEM), a core company of the Dongfang Electric Group, one of China’s top three heavy electrical equipment manufacturers. This marks the first collaboration between MHI and DFEM, under which both companies plan to jointly expand their presence in the circulating water pump market for nuclear power plants in China. The Sanmen Nuclear Power Pla..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?