Government approves Three Pilot Projects to use Hydrogen Energy in Steel Production under National Green Hydrogen Mission
Notable because
Led by two consortiums, the Steel Authority of India Limited, the pilot projects will be commissioned over the next three years with a budgetary allocation of INR 347 crore. The demonstrations aim to test the technical and economic feasibility of green hydrogen application in steel production, which can enable the long-term decarbonisation of the sector. The successful pilots can boost demand for green hydrogen, thereby reducing import dependency for coking coal in the long run.
What to look out for in the months ahead
Will the successful commissioning of the pilot projects prompt the government to launch a dedicated initiative to support demonstration projects for other breakthrough technologies for hard-to-abate sectors? Will it attempt to leverage the support of international climate finance to meet the vast scale of capital required? Beyond the capital subsidy, will the government look to subsidise the supply of green hydrogen to improve the economic viability of green hydrogen-based steel production?