Green hydrogen for steelmaking in India will only catch up by 2050, says report

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renewable energy, carbon capture, usage and storage technology with Blast Furnace (BF)/Basic Oxygen Furnace (BOF) or Direct Reduced Iron (DRI)-Electric Arc Furnace (EAF), scrap-based Electric Arc Furnace (EAF) etc. Of these technologies, the green hydrogen-based route is the cleanest method of producing steel. However, green hydrogen is expensive and investing in the technology could render steelmakers uncompetitive as they sell a highly commoditised product.

The government has taken initiatives to decarbonise the steel sector, including the Steel Scrap Recycling Policy 2019, the Perform, Achieve and Trade (PAT) scheme and the announcement of 13 task forces by the Ministry of Steel for developing a green steel roadmap. The most important initiative though is the National Green Hydrogen Mission (NGHM), under which the Ministry of Steel has been allocated 30% of the pilot project budget, i.e., ₹14.66 billion ($ 177 million), to promote the use of green hydrogen in steelmaking. Under this mission, the Solar Energy Corp.

of India (SECI) has issued two tenders under Strategic Interventions for the Green Hydrogen Transition (SIGHT) programme in July 2023. The first is a 1.5 gigawatts (GW) tender for scaling up localised manufacturing in the electrolyser space, and research and development in indigenous stack technology. The second tender is for producing 450,000 tonnes of green hydrogen per annum on technology-agnostic and biomass pathways.