New Delhi, June 14, 2024 — MECON Limited, acting as the Scheme Implementing Agency on behalf of the Ministry of Steel, has issued a Request for Proposal (RfP) inviting bids for the use of hydrogen in steel production processes. The RfP, which seeks innovative proposals for the integration of hydrogen in Direct Reduced Iron (DRI) pilot plants, existing blast furnaces, and existing DRI vertical shafts, was made available through the Tenderwizard platform, MECON’s website, and the Central Procurement Portal on June 11, 2024. The deadline for bid submissions is July 8, 2024.
The Ministry of Steel has engaged MECON Limited to spearhead this initiative, underscoring the critical role hydrogen is expected to play in transforming the steel industry. This move is part of a broader push to reduce the sector’s reliance on fossil fuels and transition towards greener, more sustainable energy sources.
Call for Proposals
The RfP invites a diverse range of stakeholders, including Central Public Sector Units (CPSUs), state-owned enterprises, private sector companies, state corporations, Indian research institutions, academic institutions, indigenous equipment manufacturers, and joint ventures or consortiums of these entities, to submit proposals. This wide-reaching call aims to harness the collective expertise of various sectors to drive forward the adoption of green hydrogen in steel production.
Green Hydrogen Integration in the Steel Sector
The steel industry is one of the largest consumers of fossil fuels and, consequently, a significant contributor to carbon emissions. The integration of green hydrogen presents a promising opportunity to replace traditional carbon-intensive processes with more sustainable alternatives. With rapid advancements in renewable energy and hydrogen production technologies, it is anticipated that green hydrogen could become a cost-competitive option for steelmaking in the near future.
The National Green Hydrogen Mission, under the Ministry of New and Renewable Energy, is championing this transition by supporting pilot projects aimed at exploring and validating the use of green hydrogen in the steel sector. The mission has allocated a budget of ₹455 crore until the fiscal year 2029-30 to fund initiatives within the steel industry, reflecting the government’s commitment to fostering a greener, more sustainable industrial base.
Thrust Areas for Hydrogen Utilization
The RfP outlines several key areas for exploration and development under the scheme, each designed to integrate hydrogen into various stages of the steelmaking process:
- Pilot Project for 100% Hydrogen DRI Production: This initiative seeks to produce Direct Reduced Iron (DRI) using 100% hydrogen in a vertical shaft furnace. Known as Scheme-A, this project aims to demonstrate the feasibility and efficiency of using hydrogen as the sole reducing agent, potentially eliminating the need for traditional carbon-based reductants.
- Hydrogen Use in Blast Furnaces: Scheme-B focuses on reducing coal and coke consumption in existing blast furnaces by injecting hydrogen. This approach aims to lower the carbon footprint of the blast furnace operation and improve the overall environmental sustainability of steel production.
- Hydrogen Injection in Vertical Shaft DRI Units: Scheme-C involves the gradual substitution of natural gas and other reducing gases with hydrogen in vertical shaft DRI units. The goal is to progressively increase the proportion of hydrogen used, ultimately maximizing its use and minimizing carbon emissions.
Objectives and Expected Outcomes
The overarching objectives of these schemes include advancing technology and expertise in hydrogen utilization within the steel industry, supporting the broader deployment of hydrogen in iron and steel manufacturing, and validating the technical feasibility and economic viability of hydrogen-based processes under real-world conditions. The initiatives also aim to evaluate the performance of hydrogen in producing low-carbon iron and steel and to ensure the safe and secure operation of hydrogen-based production systems.
MECON Limited’s RfP marks a significant step towards decarbonizing the steel industry, aligning with global efforts to mitigate climate change and promote sustainable industrial practices. By inviting a wide range of stakeholders to contribute innovative solutions, the initiative aims to accelerate the adoption of green hydrogen and position India as a leader in sustainable steel production.
Also Read | Uno Minda and Inovance Automotive Partner to Enhance E-4W Product Portfolio