India launches green hydrogen pilot Projects in shipping & steel sectors

Government unveils initiatives to substitute fossil fuels, establish green hydrogen ecosystem, under National Mission.

The Government of India has issued guidelines for conducting pilot projects aimed at utilising green hydrogen in both the shipping and steel sectors. These guidelines, titled “Scheme Guidelines for implementation of Pilot projects for use of Green Hydrogen,” have been released by the Ministry of New & Renewable Energy (MNRE) on February 1st and 2nd, 2024, respectively, under the National Green Hydrogen Mission.

Under this mission, MNRE, along with other initiatives, will oversee pilot projects in both sectors to substitute fossil fuels and feedstock with green hydrogen and its derivatives. The pilot projects will be executed in collaboration with the Ministry of Ports, Shipping and Waterways (MoPSW) for the shipping sector and the Ministry of Steel for the steel sector, along with the implementing agencies nominated under the scheme.

In the shipping sector, the focus areas for the pilot projects include retrofitting existing ships to operate on green hydrogen or its derivatives, as well as establishing bunkering and refueling facilities in ports along international shipping lanes for fuels derived from green hydrogen. The scheme has a budgetary allocation of ₹ 115 crores until the financial year 2025-26.

Similarly, in the steel sector, the pilot projects will concentrate on utilising hydrogen in the Direct Reduced Iron making process, blast furnaces, and gradually substituting fossil fuels with green hydrogen. The scheme also supports innovative uses of hydrogen for reducing carbon emissions in iron and steel production. The budget for these projects is set at ₹ 455 crores until FY 2029-30.

Both initiatives aim to develop the necessary infrastructure for the utilization of green hydrogen in their respective sectors, thereby establishing a green hydrogen ecosystem. The use of green hydrogen is expected to increase over time with a reduction in production costs.

The National Green Hydrogen Mission, launched on January 4th, 2023, with an outlay of ₹ 19,744 crores up to FY 2029-30, seeks to make India self-reliant through clean energy, leading to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and positioning India as a leader in green hydrogen technology and market.