Union government sanctions three pilot projects for hydrogen use in steel production

As part of the National Green Hydrogen Mission, the Indian government has approved three pilot projects aimed at utilizing hydrogen in steel production. 

The projects include a 50 ton-per-day (tpd) plant by Matrix Gas and Renewables Ltd (in collaboration with Gensol Engineering Ltd, IIT Bhubaneswar, and Metsol AB, Sweden), a 40 tpd plant by Simplex Castings Ltd (partnered with BSBK, Ten Eight Investment, and IIT Bhilai), and a 3,200 tpd plant by Steel Authority of India Ltd (SAIL) in Ranchi.

These projects will receive a total funding of INR 347 crore from the government and are expected to be commissioned within the next three years. The Ministry of New and Renewable Energy (MNRE) issued guidelines for these pilot projects to explore technologies for green hydrogen use in steelmaking, focusing on demonstrating technical feasibility, performance, and economic viability to promote low-carbon iron and steel production.

The pilot projects are divided into three categories: (i) direct reduced iron (DRI) production using 100% hydrogen with a vertical shaft, (ii) hydrogen use in blast furnaces to reduce coal/coke consumption, and (iii) hydrogen injection in vertical shaft-based DRI units.