New Delhi [India], Apr 23 (ANI): India is progressing significantly in the shift towards cleaner energy sources by developing green hydrogen facilities. The country aims to move away from carbon-heavy hydrogen production techniques toward greener alternatives generated via electrolysis powered by renewables.
A report “Role of Green Hydrogen in Indian Steel Sector” by
Ernst & Young
The (EY)-Parthenon, working alongside WWF-India, states that India’s dedication to green hydrogen offers a significant chance to reduce carbon emissions across the country.
steel sector
, one of the largest contributors to worldwide CO2 emissions.
The steel industry, responsible for 7 per cent of global CO2 emissions, is central to this transformation.
The report highlighted that green hydrogen offers a sustainable substitute for conventional high-carbon approaches. Incorporating green hydrogen into steel manufacturing could significantly aid in reducing carbon emissions.
Hydrogen can be utilized at different phases of manufacturing, encompassing agglomeration, blast furnace functions, Direct Reduced Iron (DRI) procedures, along with subsequent tasks like reheating and galvanizing.
Although partial hydrogen blends have proven successful, complete transition to hydrogen remains an ongoing investigation. Even with hurdles such as limited raw materials and necessary infrastructural changes, progress in technology along with favorable policies are paving the way towards a more sustainable approach to steel manufacturing.
By fiscal year 2050, India’s plan for achieving net-zero emissions by 2070 anticipates that the production of green hydrogen direct reduced iron (H2-DRI) along with electric arc furnaces (EAFs) will account for approximately 13 percent of an estimated 403 million metric tons per annum (MMTPA) of crude steel output. This contribution is forecasted to rise significantly to around 41 percent of an anticipated 597 MMTPA of crude steel by fiscal year 2070.
Green hydrogen
demand in the
steel sector
is projected to expand at a 13 percent Compound Annual Growth Rate (CAGR), hitting 15.15 MMTPA by FY70.
The report indicated that achieving a 245 MMTPA H2-DRI capacity by 2070 requires significant financial investment.
The report indicated that achieving a 245 MMTPA H₂-DRI capacity by 2070 would require investments ranging from $297 to $304 billion.
The document also notes that decreasing costs of green hydrogen will make this a feasible substitute for conventional steel production.
Nevertheless, the report warns that even with these benefits, the extensive use of green hydrogen encounters considerable obstacles.
The statement mentioned, “Substantial initial expenses for infrastructure and technology necessitate governmental support through measures like production-based programs, tax exemptions, and public-private collaboration models.”
The report recommends implementing an all-encompassing National Green Hydrogen Policy. This policy should encompass regulatory actions aimed at lowering the expenses associated with renewable energy sources and setting goals for widespread acceptance. Crucial elements include financial inducements like tax exemptions and systems for pricing carbon emissions, vital for drawing investment needed to cover funding needs. Such steps could decrease both electrical power and capital expenditures, thereby making green hydrogen solutions more economically viable, according to the study.
Launched in 2021, the National Hydrogen Mission (NHM) has the potential to significantly facilitate progress toward these goals. The mission seeks to position India as a frontrunner in green hydrogen technology, setting an ambitious target of producing five million metric tons of green hydrogen annually by 2030. (ANI)
Provided by GAPTEKZONE. (
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