National Green Hydrogen Mission, launched on 4th January 2023 by MNRE with an outlay of Rs. 19,744 Crore aims at to make India a Global Hub for production, usage and export of Green Hydrogen and its derivatives.
Ministry of Steel has been allocated Rs. 455 Crore for the implementation of the pilot projects in the steel sector till FY 2029-30. The following three approaches for utilization of hydrogen in Iron and steel making have been identified in the Scheme Guidelines:
- Scheme A: Pilot project to produce DRI using 100% hydrogen in the consortium mode.
- Scheme B: Injection of hydrogen in the BF through tuyeres to reduce the coal/coke consumption.
- Scheme C: Injection of Hydrogen in Vertical shaft based DRI making partially to substitute the natural gas/other reducing gas & raise its proportion in a gradual manner with an objective to use the maximum hydrogen.
MECON was assigned as the Scheme Implementing Agency (SIA) for this Scheme. As per scheme guidelines, proposals are to be evaluated by a Project Appraisal Committee (PAC).
Under Phase-1, Ministry of Steel has awarded 3 pilot projects (2 in scheme A and 1 in Scheme B) for use of hydrogen in steel sector. Under phase 2, 1project in Scheme B and 3 projects in scheme C are under consideration.