New Delhi: In a pioneering move towards sustainable steel production, MECON Limited, operating under the Ministry of Steel, has issued a ground breaking call for proposals to integrate green hydrogen into the sector. The Request for Proposal (RfP), released on June 11, 2024, signals a significant leap in decarbonizing steel manufacturing processes.
MECON's initiative, endorsed by the Ministry of New and Renewable Energy through the National Green Hydrogen Mission, aims to transform the steel industry's environmental footprint. With a substantial budget allocation of Rs 455 crore, spanning until FY 2029-30, the government underscores its commitment to piloting projects that explore the potential of green hydrogen in steel production.
The RfP targets a diverse range of entities, including Central Public Sector Undertakings (CPSUs), state PSUs, private sector companies, research institutions, and indigenous equipment manufacturers. It solicits proposals across three core thrust areas:
1. Scheme-A: Pilot projects for producing Direct Reduced Iron (DRI) using 100 percent hydrogen via vertical shaft technology.
2. Scheme-B: Integration of hydrogen in Blast Furnace operations to reduce coal/coke consumption and subsequently lower carbon emissions.
3. Scheme-C: Introduction of hydrogen injection in vertical shaft-based DRI units to gradually replace natural gas (NG) or other reducing gases, with a focus on maximizing hydrogen utilization.
These schemes reflect a comprehensive approach to advancing technology, assessing feasibility, and evaluating economic viability within the steel sector. By encouraging the deployment of hydrogen in iron and steel manufacturing processes, MECON aims to ensure both technical proficiency and operational safety in transitioning towards low-carbon steel production.
The call for proposals represents a watershed moment in the steel industry's quest for sustainability. Through the adoption of green hydrogen, the sector is poised to embrace more efficient and environmentally conscious production methodologies, paving the way for a greener future.
Prospective bidders have until July 8, 2024, to submit their proposals via e-tender mode accessible through Tenderwizard, the MECON website, and the Central Procurement Portal. The Ministry of Steel emphasizes the significant potential for replacing fossil fuels with green hydrogen in steel manufacturing, given the rapid advancements in renewable energy technology and electrolysis for hydrogen production. It anticipates that green-hydrogen-based steel production may become cost-competitive in the coming years, further driving the industry towards sustainability.
Under the National Green Hydrogen Mission, pilot projects in the steel sector are being supported to assess the feasibility of utilizing green hydrogen. The Mission's budgetary allocation for the steel sector underscores the government's commitment to fostering innovation and sustainability within the industry. Through these initiatives, India aims to position itself at the forefront of green technology adoption, setting an example for global steel producers.
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