Decarbonising India's Steel Sector: The Green Hydrogen Revolution
Key Ideas
  • India is investing in green hydrogen infrastructure to transition its steel sector from carbon-intensive methods to renewable-powered green hydrogen through electrolysis.
  • The steel industry, a major emitter of global CO2 emissions, is central to this transformative opportunity for decarbonisation.
  • Green hydrogen adoption in steel production is expected to contribute significantly to India's net zero scenario by 2070, with a projected 41% growth in crude steel output.
  • While facing challenges like feedstock availability and infrastructure requirements, technological advancements and supportive policies are driving the steel sector towards a greener future.
India is taking significant steps towards clean energy transition by embracing green hydrogen in its steel sector. A report by Ernst & Young (EY)-Parthenon in collaboration with WWF-India highlights India's commitment to decarbonising its steel industry through the use of green hydrogen. The steel sector, responsible for 7% of global CO2 emissions, can benefit from the sustainable alternative that green hydrogen offers over traditional carbon-intensive methods. The report emphasizes the potential of integrating green hydrogen across various production stages, outlining the positive impact it can have on decarbonisation. By leveraging technologies like H2-DRI and electric arc furnace (EAF) route, India aims to achieve a substantial reduction in emissions and contribute significantly to its net zero goals. Although challenges such as infrastructure costs exist, the report suggests that falling green hydrogen prices will enable a shift towards greener steel production. The need for a National Green Hydrogen Policy with regulatory measures, financial incentives, and public-private partnerships is highlighted as essential for accelerating the adoption of green hydrogen. The launch of the National Hydrogen Mission (NHM) in 2021 further strengthens India's commitment to becoming a global leader in green hydrogen production. With targets set for 2030, India is poised to drive the green hydrogen revolution in its steel sector, paving the way for a more sustainable future.
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