The Indian Ministry of New & Renewable Energy (MNRE) has unveiled guidelines for the implementation of pilot projects promoting the use of green hydrogen in the steel sector under the National Green Hydrogen Mission. Released on February 2, 2024, the guidelines aim to replace fossil fuels and feedstock with green hydrogen and its derivatives in the steel industry.
Under the National Green Hydrogen Mission, the MNRE, in collaboration with the Ministry of Steel and nominated implementing agencies, will focus on three key areas: integrating hydrogen in the Direct Reduced Ironmaking process, utilizing hydrogen in Blast Furnace operations, and gradually substituting fossil fuels with green hydrogen. The scheme also encourages innovative hydrogen applications for carbon emission reduction in iron and steel production.
The initiative acknowledges the current higher costs of green hydrogen and proposes a phased approach, suggesting steel plants initially blend a small percentage of green hydrogen, progressively increasing the proportion as cost-economics and technology advance. The guidelines emphasize the importance of upcoming steel plants being capable of operating with green hydrogen to participate in future low-carbon steel markets globally. The scheme, supported by a budget of Rs. 455 crores until FY 2029-30, will also consider greenfield projects targeting 100% green steel.
The pilot projects aim to develop infrastructure for green hydrogen use in the iron and steel industry, fostering a Green Hydrogen ecosystem. This move is anticipated to contribute significantly to India’s clean energy goals, promoting self-reliance and positioning the nation as a leader in the global Clean Energy Transition. The National Green Hydrogen Mission, launched on January 4, 2023, with an outlay of Rs. 19,744 crores up to FY 2029-30, is expected to drive economic decarbonization, reduce reliance on fossil fuel imports, and position India at the forefront of Green Hydrogen technology and market leadership.
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