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India's Green Steel Push: Rs 455 Crore for Hydrogen Projects Amid Net-Zero Goal

The Indian government has announced a significant investment of Rs 455 crore for pilot projects using hydrogen in steel production. This funding is part of the National Green Hydrogen Mission and aims to reduce the industry's heavy carbon emissions. Alongside this, a new 'Green Steel' classification system has been launched, with several plants already certified. These steps form a comprehensive strategy to clean up one of India's most polluting sectors and align with the national net-zero goal.

Key Points: India Allocates Rs 455 Crore for Hydrogen-Based Steel Pilot Projects

  • Rs 455 crore funding approved under the National Green Hydrogen Mission until FY 2029-30
  • Four pilot projects awarded to one PSU and three private plants
  • 43 private units have received Green Steel Certificates for low-emission production
  • New 'Green Steel' taxonomy and roadmap guide sector's transition to sustainability
2 min read

Rs 455 crore allocated for Hydrogen-based steel projects: Govt

India allocates Rs 455 crore for hydrogen-based steel pilot projects to cut emissions, as part of the National Green Hydrogen Mission and net-zero roadmap.

"The pilot projects aim to reduce carbon emissions from steelmaking, one of the country's most energy-intensive industries. - Minister Bhupathiraju Srinivasa Varma"

New Delhi, Dec 12

India has taken a major step toward cleaner industrial production by allocating Rs 455 crore for pilot projects that will use hydrogen in the steel sector, the Parliament was informed on Friday.

The funding has been approved under the National Green Hydrogen Mission launched by the Ministry of New & Renewable Energy and will be available until the financial year 2029-30.

The pilot projects aim to reduce carbon emissions from steelmaking, one of the country's most energy-intensive industries, Minister of State for Steel Bhupathiraju Srinivasa Varma said in a written reply to Rajya Sabha.

According to the data, four pilot projects have already been awarded. These include one project in a central public sector enterprise and three in private-sector steel plants.

The introduction of hydrogen in the steelmaking process is expected to cut dependence on coal and significantly reduce emissions.

The government has also taken several steps to expand the production of green or low-carbon steel in line with India's goal of achieving net-zero emissions by 2070.

As part of these efforts, the Ministry of Steel notified the Taxonomy of Green Steel on December 23, 2024. This framework sets clear standards for defining and categorising low-emission steel.

So far, 43 private steel units have received 'Green Steel Certificates' under the new classification system.

These plants have a combined production capacity of 11.6 million tonnes per year and currently produce 7.1 million tonnes of green steel annually.

The certification is expected to encourage more companies to adopt cleaner technologies and shift toward sustainable production.

To support the transition, the Ministry of Steel has also released a detailed report titled "Greening the Steel Sector in India: Roadmap and Action Plan."

The report is based on recommendations from 14 task forces and outlines long-term strategies for making the Indian steel industry cleaner and more sustainable.

It serves as a guide for how the sector can contribute meaningfully to the country's net-zero roadmap.

- IANS

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Reader Comments

P
Priya S
Rs 455 crore sounds like a lot, but is it enough for such a massive shift? The intention is good, but I hope the execution is transparent and the funds reach the actual projects. We've seen money get stuck in bureaucracy before.
R
Rohit P
Great step for Aatmanirbhar Bharat in green tech! Reducing coal dependence is crucial. The Green Steel Certificate is a smart move to incentivize companies. Hope the cost doesn't make our steel uncompetitive globally though.
S
Sarah B
As someone who works in environmental policy, this is very encouraging. The roadmap and taxonomy show serious planning. The key will be scaling up from pilot projects to industry-wide adoption. 2070 net-zero target needs these concrete actions.
V
Vikram M
Finally some action on greening heavy industries! The air quality in our industrial cities will benefit. Hope the technology is developed indigenously. Jai Hind!
K
Karthik V
Good news, but a respectful criticism: 7.1 million tonnes of green steel annually is a start, but it's a small fraction of total production. The pace needs to accelerate. The roadmap must have strict yearly targets, not just a 2070 goal.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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