The government has approved three pilot projects that could increase the use of green hydrogen in the steel sector

These projects, which will receive Rs 347 crore in funding from the government, were selected following an evaluation of the proposals by the ministry of new and renewable energy (MNRE).

Matrix Gas and Renewables with a pilot plant capacity of 50 ton-per-day (TPD), Simplex Castings with capacity of 40 TPD and Steel Authority of India (Ranchi) with a plant capacity 3200 TPD have emerged as the winning bidders for the projects.

The pilot projects are undertaken to identify advanced technologies the steel industry can adopt to reduce its dependence on fossil fuels, an official statement said on Friday.

These three projects have been approved under the Rs 19,744 crore National Green Hydrogen Mission launched in January 2023.

Under phase 1 of the National Green Hydrogen Mission, pilot projects under hard-to-abate sectors will be undertaken to initiate the transition of industries such as steel towards greener technologies.

Earlier this year, the ministry issued guidelines for undertaking pilot projects to use green hydrogen in the steel sector.