The Indian Ministry for New Energy and Renewables (MNRE) has introduced a strategic framework to pilot the adoption of green hydrogen within the nation’s steel industry. Announced on February 5, these guidelines are part of the ambitious National Green Hydrogen Mission, aiming to decarbonize one of the most energy-intensive sectors.
In collaboration with the Ministry of Steel and designated Implementing Agencies, MNRE will kickstart pilot projects designed to replace conventional fossil fuels and feedstock with green hydrogen and its derivatives. This initiative targets three primary areas: incorporating hydrogen into the direct reduced iron (DRI) process, integrating it into blast furnaces, and gradually replacing fossil fuels with green hydrogen across the sector.
With an investment of $55 million allocated through fiscal year 2029-30, the government seeks to build the infrastructure needed for the steel industry to transition towards green hydrogen use. This move is expected to not only reduce carbon emissions significantly but also to decrease production costs over time, making green steel a viable and sustainable option.
Acknowledging the current cost challenges associated with green hydrogen production, the guidelines propose a phased approach. Steel manufacturers are encouraged to start by blending a small percentage of green hydrogen into their operations, gradually increasing this amount as technological advancements make green hydrogen more cost-effective.
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