The Ministry of Steel of India has allocated INR4.55 illion (about USD55 million) to the Indian steel industry to support the research on hydrogen metallurgy and the construction of pilot plants.

The Ministry of Steel said that the applications of Hydrogen-based Direct Reduction technology and Blast Furnace Hydrogen Injection in large scale are still having significant challenges in India. The purpose of this funding is to promote the R&D of hydrogen-based direct reduction technology, assist the country's enterprises in redesigning electric furnaces matching hydrogen-based direct reduction iron, renovate existing direct reduction iron plants (replacing existing fossil reducing agents with hydrogen partially or completely), and conduct technical design and mechanical modification research for blast furnace hydrogen injection.

The Ministry of Steel pointed out that the country's steel industry needs to focus on the following aspects: The first is to simulate the production of molten iron with hydrogen; The second is to build or renovate existing direct reduction iron plants, electric furnaces, blast furnaces, etc.; And the third is to reduce the risk of hydrogen transportation.

The Ministry of Steel said that before implementing a formal research plan, steel companies are required to write a proposal report and submit it to the Ministry of Steel of India for deliberation, and can only receive the financial support after the Ministry’s approval.

In April, in order to achieve decarbonization of the steel business, TATA Steel conducted a 4-5 day continuous injection of 40% hydrogen gas in a blast furnace at its Jamshedpur plant in Jharkhand. TATA Steel said the cost of hydrogen used for the experiment is about USD12/kg, and there is no government support for the hydrogen used for this trial.

In April this year, the Ministry of Steel established 13 working groups to develop a roadmap for green steel production in the country. The carbon boundary adjustment mechanism of the European Commission will have a negative impact on India's steel exports from 2026. Although India has reached an agreement with the European Union that it will not force developing countries to comply with European carbon emissions standards, India still needs to make every effort to reduce carbon emissions from the steel sector.

India plans to reduce its total carbon emissions by 30% to 35% from 2005 levels by 2030 and achieve carbon neutrality by 2070.

(Source: BRICS Technology Transfer Service Platform)