Indian Ministry of Steel Unveils National Green Hydrogen Mission
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Steel sector to focus on green hydrogen and carbon capture until 2047; plan to apply hydrogen into oxygen-rich induction and blast furnaces

Here’s an article posted in Mercom India that talks about the contribution of the Indian ministry for the National green Hydrogen mission.

According to the article,

Top management consulting experts for Bio-energy, EV, Solar, Green Hydrogen

  • Indian Ministry of Steel has launched the National Green Hydrogen Mission.
  • A budget of ₹4.55 billion (~$55 million) has been allocated for pilot projects on green hydrogen in the iron and steel industry.
  • The initiative aims to promote the use of green hydrogen in steelmaking through research, development, and demonstration activities.

But adopting green hydrogen just like that is no easy feat, and comes with its own set of challenges. The main obstacles to widespread adoption of green hydrogen in the steel industry are:

  1. High Cost: The production of green hydrogen is currently more expensive than traditional methods like coal. Replacing coal with green hydrogen would raise the total price of a ton of steel by almost one-third. While costs are expected to decrease to around 10% more than conventional steel by 2030 as the cost of green hydrogen production falls, the initial high cost is a major barrier.
  2. Limited Supply: Green hydrogen is still in its early stages of development, and increased investment is crucial for its integration into the steel industry. Currently, the combined electrolyser capacity for green hydrogen has only surpassed 1GW, which is sufficient to decarbonize just one steel mill with a capacity close to 3 million tons per annum. Therefore, scaling up green hydrogen production is needed.
  3. Lack of Infrastructure: Establishing a robust infrastructure for hydrogen production, storage, and distribution is fundamental to operating a hydrogen-based steel plant. Building this infrastructure requires significant investment and coordination across the value chain.
  4. Technological Challenges: Adapting existing steelmaking processes to accommodate hydrogen-based technologies requires careful planning and engineering expertise. Incorporating hydrogen injection technology into steelmaking processes and modifying equipment to be compatible with hydrogen-rich atmospheres are technical hurdles.
  5. Securing Renewable Electricity Supply: To sustain the operation of large-scale green hydrogen-based direct reduction plants, a consistent supply of renewable electricity must be guaranteed throughout the year. The variability of renewable energy sources necessitates oversizing capacity and implementing energy storage solutions, further increasing costs.
  6. Lack of Supportive Regulations: End users are hopeful for more supportive regulations to facilitate a smoother transition to green hydrogen, potentially resulting in an uptick in project finance approvals. Clearer policy support and incentives could help drive adoption.
  7. Competing Priorities for Limited Green Hydrogen Supply: With challenges facing green hydrogen production, it is crucial to prioritise the available capacities for sectors that can yield the greatest reduction in carbon emissions, such as the steel industry. Competing demand from other sectors may limit supply.

Overcoming these obstacles will require significant investment, technological innovation, policy support, and coordination across the steel value chain. Pilot projects and continued cost reductions in green hydrogen production are crucial first steps

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Interestingly, we have some other posts related to this content:

India’s First Green Hydrogen Microgrid Project By Uneecops Technologies – Uneecops Technologies plans to establish India’s inaugural green hydrogen microgrid in Leh Region, as per Energy World. India’s First Waste-to-Hydrogen Plant by TGBL in Pune – TheGreenBillions Ltd (TGBL) is launching India’s inaugural solid waste-to-hydrogen plant in Pune, costing over Rs 430 crore, reports Business Standard. MoU for Green Hydrogen Projects in Defense: NTPC REL and Indian Army – NTPC REL and the Indian Army signed an MoU for green hydrogen projects, reflecting a significant move towards sustainability and energy transition in India​​.

About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.


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