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Steel and Port Ministries issue guidelines for use of hydrogen usage

Monday, 05 Feb 2024
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The Steel and Port Ministries on 03 February, 2024 announced a scheme worth Rs 570 crore for promoting the use of hydrogen in making green steel and as fuel in ships. The schemes are part of the Rs 19,477-crore National Green Hydrogen Mission.

The budgetary outlay for projects under the Steel Ministry will be Rs 455 crore till 2029-30. The Steel Ministry will incentivise the push for the use of hydrogen in direct reduced iron-making process, use of hydrogen in blast furnace, and substitution of fossil fuels with green hydrogen in a gradual manner. The scheme will also support pilot projects involving any other innovative use of hydrogen which help in carbon emissions in iron and steel production.

The scheme envisages that steel plants could start by blending a small percentage of green hydrogen in their processes, and increase the blending proportion progressively. The guidelines also provide that upcoming steel plants should be capable of operating with green hydrogen to be able to participate in future global low-carbon steel markets. The scheme will also consider greenfield projects aiming at 100 percent green steel.

The Ministry of Ports, Shipping and Waterways (MoPSW) has also come up with similar guidelines to promote use of green hydrogen to replace fossil fuels. The budgetary outlay is of Rs 115 crore till FY26. 

Two areas have been identified as thrust areas under the pilot projects - retrofitting of existing ships, and development of bunkering and refuelling facilities in ports on international shipping lanes for fuels based on green hydrogen.  This would lead to the development of necessary infrastructure including refuelling stations, storage, and distribution networks for a wider ecosystem.

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