The government has approved three pilot projects aimed at utilizing hydrogen in steel production, as announced in an official statement.

Matrix Gas and Renewables, in collaboration with Gensol Engineering, the Indian Institute of Technology Bhubaneswar, and Sweden's Metsol AB, has been selected to develop a pilot plant with a capacity of 50 tonnes per day (TPD). The project’s total capital expenditure is estimated at ?321 crore, with the Indian government providing 50% in capex incentives to support this innovative initiative.

Another consortium, Simplex Castings, which includes BSBK Pvt Ltd, Ten Eight Investment, and IIT Bhilai, has been chosen for a 40 TPD pilot project.

The Ministry of New and Renewable Energy (MNRE) has sanctioned these three pilot projects after a comprehensive evaluation of the proposals submitted. The Steel Authority of India Ltd (SAIL) will lead the largest project, with a capacity of 3,200 TPD in Ranchi.

The MNRE stated that the government will allocate ?347 crore for these pilot projects, which are expected to be commissioned within the next three years. Previously, the MNRE issued guidelines for implementing such projects and invited proposals from interested parties.

As part of the National Green Hydrogen Mission, the Union Government aims to advance the use of hydrogen in steel production. These pilot projects are anticipated to demonstrate the safe and effective operations of green hydrogen-based steelmaking processes, validating their technical feasibility, performance, and economic viability, ultimately contributing to low-carbon iron and steel production.