Govt sanctions 3 pilot projects for using hydrogen in steelmaking

The government has sanctioned three pilot projects for using hydrogen in steel production to SAIL and two consortiums, an official statement said on Friday.

Matrix Gas and Renewables Ltd, a consortium of Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar, and Metsol AB, Sweden, has also been selected for a pilot plant of 50 tonnes-per-day (TPD) capacity. The project’s total capital expenditure (capex) is estimated at INR 321 Crore, with the Government of India providing 50% capex incentives to support this groundbreaking initiative.

Simplex Castings is another consortium selected for the 40 TPD pilot project. Its members include BSBK Pvt Ltd, Ten Eight Investment and IIT Bhilai.

Following a thorough evaluation of the proposals received, the MNRE has sanctioned three pilot projects in the steel sector- matrix Gas and Renewables Ltd, partnering with Gensol Engineering Ltd, IIT Bhubaneswar, and Metsol AB, Sweden, will establish a 50 ton-per-day (TPD) pilot plant; simplex Castings Ltd, in collaboration with BSBK Pvt. Ltd., Ten Eight Investment, and IIT Bhilai, will set up a 40 TPD pilot plant; and Steel Authority of India Ltd (SAIL) in Ranchi will lead the largest project with a capacity of 3,200 TPD.

The Ministry of New and Renewable Energy said in the statement that the government will provide Rs 347 crore for the pilot projects, which are likely to be commissioned in the next three years.

Earlier, the MNRE had issued guidelines for the implementation of pilot projects in the steel sector and invited proposals from interested parties for their participation.

"As part of the National Green Hydrogen Mission, the Union Government has sanctioned three pilot projects for the use of Hydrogen in steel production," the MNRE said.

State-owned Steel Authority of India Ltd (Ranchi) has also been selected for a pilot project of 3,200 TPD.

These pilot projects are expected to demonstrate safe and secure operations of green hydrogen-based steel-making processes, validating technical feasibility and performance, and evaluating their economic viability, thereby leading to low-carbon iron and steel production.

With PTI inputs