India's Green Hydrogen Revolution in the Steel Industry
Key Ideas
  • India is investing in green hydrogen infrastructure to transition to renewable-powered green hydrogen, particularly in the steel sector.
  • The steel industry, a major global CO2 emitter, is central to the transformation towards sustainable green hydrogen production.
  • Despite challenges, such as feedstock availability and infrastructure requirements, technological advancements and supportive policies are driving the move towards greener steel production in India.
  • The report emphasizes the need for a comprehensive National Green Hydrogen Policy and financial incentives to make green hydrogen adoption more affordable and attractive for investments.
India is taking significant steps towards clean energy transition by investing in green hydrogen infrastructure, specifically in the steel sector. A report by Ernst & Young (EY)-Parthenon in collaboration with WWF-India highlights the country's commitment to green hydrogen as a means to decarbonize the steel industry, which accounts for a substantial portion of global CO2 emissions. Green hydrogen, produced through electrolysis using renewable energy sources, offers a sustainable alternative to traditional carbon-intensive methods in steel production. Despite challenges like feedstock availability and infrastructure needs, India aims to increase its green hydrogen capacity significantly by 2070, with heavy investments required to achieve this goal. The report stresses the importance of a National Green Hydrogen Policy to reduce renewable energy costs, establish adoption targets, and attract investments through financial incentives like tax breaks and carbon pricing mechanisms. The National Hydrogen Mission, launched in 2021, sets ambitious targets for green hydrogen production in India by 2030. While the shift to green hydrogen faces obstacles, the overall sentiment is positive, with a belief that technological advancements and supportive policies will pave the way for a greener and more sustainable future in the steel sector.
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