In News:

• The Union Government has sanctioned three pilot projects under the National Green Hydrogen Mission to explore the use of green hydrogen in steel production.
  • The initiative aims to demonstrate safe and efficient hydrogen-based steelmaking processes, validate their technical feasibility, and evaluate economic viability for low-carbon steel production.
• Objectives of the Scheme:
  • Identify and test advanced technologies for utilizing green hydrogen in the steel sector.
  • Demonstrate safe and secure operation of hydrogen-based steel production.
  • Validate technical and economic feasibility, contributing to decarbonization of iron and steel manufacturing.
• Pilot Project Components:
  • • 100% Hydrogen-based Direct Reduced Iron (DRI) using vertical shaft furnaces.
    • Hydrogen use in Blast Furnace to reduce coal/coke consumption.
    • Hydrogen injection in vertical shaft-based DRI units.
• Sanctioned Pilot Projects:

• Matrix Gas and Renewables Ltd
  • Capacity: 50 tons per day (TPD).
  • Consortium Partners: Gensol Engineering Ltd, IIT Bhubaneswar, Metsol AB (Sweden).
• Simplex Castings Ltd
  • Capacity: 40 TPD.
  • Consortium Partners: BSBK Pvt. Ltd., Ten Eight Investment, IIT Bhilai.
• Steel Authority of India Ltd (SAIL)
  • Capacity: 3,200 TPD (Ranchi).

• Financial Support:
  • Total Government Funding: ?347 crore for the three projects.
  • These pilot projects are expected to be commissioned within the next three years and may serve as a blueprint for scaling up such technologies in India.
• About the National Green Hydrogen Mission:
  • Launched: January 4, 2023.
  • Total Budget: ?19,744 crore (up to FY 2029-30).
  • Primary Goal: Establish India as a global hub for green hydrogen production and export while fostering decarbonization in sectors like steel, mobility, and energy.
• Key Features of the Mission:
  • SIGHT (Strategic Interventions for Green Hydrogen Transition):
    • Supports domestic manufacturing of electrolysers and promotes the production and use of green hydrogen.
  • Expected Outcomes by 2030:
    • Green Hydrogen Production: At least 5 million metric tons (MMT) annually.
    • Renewable Energy: Addition of 125 GW in renewable energy capacity.
    • Investment: Over ?8 lakh crore in green hydrogen technologies.
    • Employment: Creation of 6 lakh jobs.
    • Reduction in Fossil Fuel Imports: Savings of over ?1 lakh crore.
    • GHG Emissions Reduction: Avoidance of nearly 50 MMT of annual greenhouse gas emissions.
• Phase-wise Implementation:
  • Phase I (2022-26): Focus on demand creation and initial deployment in existing hydrogen-using sectors (like steel and mobility).
  • Phase II (2026-30): Expansion to new sectors with a push toward commercialization of green hydrogen.

The National Green Hydrogen Mission aims to significantly decarbonize India’s steel sector and other industries by leveraging hydrogen technology. With ?347 crore allocated for pilot projects in steelmaking, the initiative sets the stage for scalable, low-carbon steel production, contributing to India's clean energy transition and supporting its goal to become a global leader in green hydrogen.