Decarbonizing India's Steel Sector: Embracing Green Hydrogen for Low-Carbon DRI Processes
Key Ideas
- India's steel industry is shifting towards low-carbon DRI production methods fueled by decarbonization mandates and a focus on green hydrogen.
- Pilot projects are expected to blend hydrogen in gas-based DRI processes with plans for full-hydrogen routes, aligning with global decarbonization standards.
- Long-term goals include scaling domestic hydrogen production using renewable energy, which will significantly reduce carbon emissions in the steel sector.
- The development of a robust hydrogen supply chain, involving production, storage, transportation, and consumption points, is crucial for the success of low-carbon DRI processes.
The report highlights India's transition towards low-carbon direct reduced iron (DRI) production methods in the steel sector. With a focus on green hydrogen, the industry is responding to decarbonization imperatives and government mandates. Pilot initiatives and commercial-scale projects are set to integrate hydrogen blends in conventional DRI processes, paving the way for full-hydrogen routes. This shift aims to reduce dependence on fossil-based reductants like natural gas or coal, aligning the Indian steel industry with global decarbonization standards. Over the next decade, India plans to scale up domestic hydrogen production primarily from renewable sources for large steelmaking clusters, aiming to significantly cut down carbon emissions, especially in the ironmaking segment. Ongoing research and development efforts are exploring areas such as iron ore quality, reactor designs, and handling of 100% hydrogen, emphasizing the need for a robust hydrogen supply chain encompassing capture, compression, pipeline transport, and consumption within DRI plants. The infrastructure requirements for hydrogen production, storage, and transportation include a mix of grey and green hydrogen production, advancements in electrolyzers and SMR technologies, partnerships for cost reductions, and the need for enhanced transportation and storage infrastructure involving hydrogen pipelines, fueling stations, and public-private investment schemes supported by government incentives.