Central aid for R&D to set up pilot using green hydrogen to make steel – ET Infra

The centre will aid research and development (R&D) projects to set up pilot plants for production and utilisation of green hydrogen in the iron and steel making processes. A Steel Ministry order said that Rs 455 crore has been earmarked for the steel sector under the National Green Hydrogen Mission. This amount will be support the domestic steel industry’s endeavours to find scalable uses of Hydrogen, which is produced using environmentally sustainable practises. This low environment footprint Hydrogen is called Green to signify its superior acceptability.

Tightening regulatory regimes around the world threaten to make steel produced in India uncompetitive due to the levy of higher duties by European countries. These penalties are proposed to be imposed on steel manufactured using conventional practises that have higher emissions and are contributing to global warming.

Most steel around the world, including in India, is made using Direct Reduction of Iron (DRI), which is the chemical removal of oxygen from iron ore. This activity is carried out in a Blast furnace, usually with the help of coking coal.

To curtail the emissions from this exercise, efforts are globally being made to use Green Hydrogen instead of coal.

This concern has been raised by the domestic steel industry that wants financial support to tide over the transition.

According to the Steel Ministry, the use of Hydrogen in DRI making and Blast furnace have significant technical and economic challenges. To address these issues, the Steel Ministry has listed processes to promote Green Hydrogen.

Support will be offered for Hydrogen based DRI, and redesigning of electric arc furnaces (EAF) to make them compatible with Hydrogen. Adaption of existing DRI plants, and the design, technology, and machinery modification if Hydrogen is to be used in a Blast Furnace will also be aided.

  • Published On Jun 2, 2023 at 08:01 AM IST

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