In a significant move towards sustainable industrial transformation, the Government of India is advancing plans to integrate green hydrogen into the domestic steelmaking process. The Ministry of Steel, in coordination with the Ministry of Finance, is reportedly formulating schemes to support pilot projects that will demonstrate the use of green hydrogen as a key alternative to traditional carbon-intensive reductants like coal.
This development aligns with India’s broader national goals to reduce greenhouse gas emissions and transition to cleaner energy sources under its commitment to achieving net-zero emissions by 2070. The steel industry, being one of the highest carbon-emitting sectors, is central to this agenda. According to officials, the proposed initiatives will not only fund pilot demonstrations but also create an enabling ecosystem for technology adaptation and infrastructure readiness.
The Ministry of Steel had earlier included the promotion of green hydrogen in the ‘Mission on Green Steel’, which aims to explore and adopt environmentally friendly production methods. The introduction of targeted financial incentives, likely to be facilitated by the Ministry of Finance, will further boost industry participation. These schemes are expected to lower the entry barriers for private players and steelmakers keen on decarbonising operations but deterred by the high cost and limited availability of green hydrogen.
Global steelmakers are increasingly investing in hydrogen-based technologies, and India’s policy push comes at a critical time to maintain competitiveness in global markets. The use of green hydrogen in direct reduced iron (DRI) production is particularly gaining traction, as it emits water instead of carbon dioxide. If successful, these pilot projects could serve as models for large-scale adoption across India’s major steel-producing clusters.
Industry experts have welcomed the initiative, calling it a vital step in steering India’s steel sector toward a low-carbon future while fostering innovation, energy efficiency, and long-term sustainability.
