Page 58 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The objectives of the scheme were to identify advance technologies for utilizing green hydrogen in
steelmaking, through pilot projects. These pilot projects can demonstrate safe and secure operations of
green hydrogen-based steel making processes, validating technical feasibility and performance,
evaluating their economic viability thereby leading to low-carbon iron and steel production. Accordingly,
the proposals were invited for three components (i) Pilot project to produce DRI using 100 % Hydrogen
using vertical shaft, (ii) Use of Hydrogen in Blast Furnace to reduce coal/ coke consumption and (iii)
Injection of Hydrogen in vertical shaft based DRI making unit.

Based on the evaluations of the proposals received, the Ministry of New and Renewable Energy has
sanctioned total three pilot projects in the steel sector, (a) Matrix Gas and Renewables Ltd (Consortium
members: Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar, Metsol AB, Sweden) with
pilot plant capacity 50 ton-per-day (TPD), (b) Simplex Castings Ltd (Consortium member: BSBK Pvt. Ltd.,
Ten Eight Investment, IIT Bhilai) with pilot plant capacity 40 TPD and (c) Steel Authority of India Ltd
(Ranchi) with plant capacity 3200 TPD.

The total financial support made available will be Rs. 347 Crore from the Government of India. These pilot
projects are likely to be commissioned in next 3 years, paving way to the scaleup of such technologies in
India.

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