Government approves three pilot projects for utilisation of Green Hydrogen in steel production
- In Reports
- 04:57 PM, Oct 18, 2024
- Myind Staff
Under the National Green Hydrogen Mission, the Union Government has sanctioned three pilot projects to explore the use of hydrogen in steel production. The move comes after the Ministry of New and Renewable Energy (MNRE) issued guidelines for implementing such projects within the steel sector, in line with the mission's objectives.
The primary goal of these pilot projects is to identify and advance technologies that can utilise green hydrogen in steelmaking. The projects aim to demonstrate the safe and secure operation of green hydrogen-based steel production processes, assess their technical feasibility and performance, and evaluate their economic viability. By achieving these objectives, the projects are expected to lead to low-carbon iron and steel production, significantly contributing to India's decarbonisation efforts.
As part of the initiative, the MNRE invited proposals for three specific components: producing Direct Reduced Iron (DRI) using 100% hydrogen in a vertical shaft, using hydrogen in blast furnaces to reduce coal or coke consumption and injecting hydrogen into vertical shaft-based DRI production units. After careful evaluation, three pilot projects were approved for funding and implementation in the steel sector.
One of the sanctioned projects will be led by Matrix Gas and Renewables Ltd, working with consortium partners Gensol Engineering Ltd, the Indian Institute of Technology Bhubaneswar, and Sweden-based Metsol AB. This project will involve a pilot plant with a production capacity of 50 tons per day. Another project will be executed by Simplex Castings Ltd, in collaboration with partners BSBK Pvt. Ltd., Ten Eight Investment and IIT Bhilai. This pilot plant will have a capacity of 40 tons per day. The third project, sanctioned for Steel Authority of India Ltd (SAIL) in Ranchi, is the largest of the three, with a plant capacity of 3,200 tons per day.
The government has committed a total financial outlay of Rs. 347 crores to support these pilot projects. They are expected to be commissioned over the next three years, paving the way for scaling up hydrogen-based steelmaking technologies across India.
The National Green Hydrogen Mission, launched on January 4, 2023, with a budget of Rs. 19,744 crores, aims to run until FY 2029-30. It is a key part of India's strategy to promote clean energy, reduce reliance on fossil fuels and decarbonise the economy. The mission is expected to help India achieve Aatmanirbhar (self-reliant) status in the clean energy sector and set an example for the global energy transition.
These pilot projects in the steel industry represent a significant step forward in the country's efforts to achieve sustainable industrial growth while contributing to the broader goals of the National Green Hydrogen Mission.
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