The Indian government is stepping up efforts to produce eco-friendly green steel, aiming to lower carbon emissions in the steel sector. As part of this initiative, the Ministry of Steel has launched pilot projects designed to use hydrogen in steel manufacturing, which could significantly reduce coal usage and cut down harmful emissions. These projects were announced in Parliament on Friday.
Under this plan, the Ministry of Steel is backing two pilot projects that aim to produce Direct Reduced Iron (DRI) using 100% hydrogen in vertical shafts. Another pilot project focuses on using hydrogen in existing blast furnaces to reduce coal consumption. This strategy is part of India’s broader goal to promote green steel and address climate change by cutting the carbon footprint of traditional steel production.
National Green Hydrogen Mission Funding
To support these projects, the Ministry of Steel has been allocated ₹455 crore under the National Green Hydrogen Mission. This funding will be available for green hydrogen projects in the steel sector until the 2029-30 fiscal year. The National Green Hydrogen Mission, launched by the Ministry of New & Renewable Energy, aims to encourage the use of green hydrogen across different industries, including steel production, to reduce dependence on fossil fuels.
Collaborations with Global Leaders in Technology
The Indian government is also collaborating with global technology leaders and research organizations to promote sustainable steel manufacturing. Key partners include BHP from Australia, SMS from Germany, Primetal Technologies from the United Kingdom, John Cockerill India Limited from Belgium, and Ram Charan Company Pvt Ltd from Chennai. These collaborations aim to introduce advanced technology to reduce carbon emissions in steelmaking.
In addition, Indian institutions like IIT Bombay’s National Centre of Excellence in Carbon Capture and Utilisation are actively participating in research to make steel production more sustainable. The Great Eastern Energy Corporation Ltd. is also contributing to initiatives aimed at creating low-carbon steel.
Green Steel Taxonomy and Roadmap
To further standardize the industry’s shift toward sustainable practices, the Ministry of Steel has released the “Taxonomy for Green Steel.” This document provides clear guidelines and standards for categorizing and defining low-emission steel products.
The Ministry has also unveiled a comprehensive report titled “Greening the Steel Sector in India: Roadmap and Action Plan.” This report outlines the steps needed to align India’s steel industry with the goal of achieving net-zero carbon emissions by 2070. The recommendations in the report are based on the input of 14 task forces set up by the Ministry to study sustainability in the steel sector.
Strengthening Ties with Japan for Steel Industry Collaboration
During the parliamentary session, the Minister of State for Steel, Bhupathiraju Srinivasa Varma, also addressed India’s collaboration with Japan in the steel sector. Discussions between the two countries have focused on economic trends, global challenges affecting the steel industry, and industry developments.
The discussions covered various important topics, including India’s Quality Control Orders for steel, the impact of global steel overproduction, and ways to improve cooperation through capacity-building programs.
Existing Agreement Between India and Japan
India and Japan already have a Memorandum of Cooperation (MoC) between the Ministry of Steel and Japan’s Ministry of Economy, Trade, and Industry (METI). This MoC aims to enhance collaboration between the two nations in the steel industry.
However, since the Indian steel sector is deregulated, investment decisions are made independently by steel companies based on commercial interests, without direct involvement from the government.
By promoting green steel initiatives and collaborating with global leaders, India aims to position itself as a leader in sustainable steel manufacturing while reducing its carbon footprint and supporting the country’s larger net-zero emission goals.
