Centre Approves Three Pilot Projects for Hydrogen Energy in Steel Production

New Delhi: The Union Government has approved three pilot projects aimed at incorporating hydrogen energy into steel production under the National Green Hydrogen Mission. This initiative is part of a broader strategy to advance clean energy technologies in India.

The Ministry of New and Renewable Energy (MNRE) previously issued guidelines to facilitate pilot projects in the steel sector as part of the mission. The primary goal is to identify and enhance technologies that can effectively integrate green hydrogen into steelmaking processes.

These pilot projects will showcase the safe and efficient use of hydrogen in steel production, evaluating their technical feasibility, performance, and economic viability to achieve low-carbon steel production.

Proposals were invited for three specific areas: producing Direct Reduced Iron (DRI) using 100% hydrogen in a vertical shaft, reducing coal and coke usage in blast furnaces through hydrogen integration, and injecting hydrogen into vertical shaft-based DRI production units.

After a comprehensive evaluation, the MNRE has approved the following projects:

Matrix Gas and Renewables Ltd, in partnership with Gensol Engineering Ltd, IIT Bhubaneswar, and Metsol AB (Sweden), will set up a 50-ton-per-day (TPD) pilot plant. Simplex Castings Ltd, collaborating with BSBK Pvt. Ltd., Ten Eight Investment, and IIT Bhilai, will establish a 40 TPD pilot plant. Steel Authority of India Ltd (SAIL) will lead the largest project in Ranchi, with a capacity of 3,200 TPD.

The government has allocated Rs347 crore in financial support for these initiatives, which are expected to be operational within the next three years. This development is crucial for scaling up green hydrogen technologies in India's steel industry.

Launched on January 4, 2023, the National Green Hydrogen Mission has a budget of Rs19,744 crore allocated through FY 2029-30. The mission aims to propel India's clean energy transformation, making the country self-reliant in energy, supporting global clean energy initiatives, reducing carbon emissions, lessening dependence on fossil fuel imports, and establishing India as a leader in green hydrogen technology and market development.

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