India launches ₹207 crore pilot for 100% hydrogen-based steelmaking plant
CSIR-IMMT will head a ₹207 crore national pilot to build India's first fully hydrogen-fueled DRI plant, with ₹113 crore government backing and a target completion of August 2029.
A ₹207 crore national pilot to create a 20-tonne-per-day direct reduced iron plant powered entirely by hydrogen has secured in-principle approval from the Ministry of Steel and the Ministry of New and Renewable Energy. Led by CSIR-IMMT, the venture will receive ₹113 crore from the National Green Hydrogen Mission, with the remaining financing supplied by a consortium that includes Godavari Power and Ispat Ltd, Lloyd Steel, Jindal Stainless, Thyssenkrupp Industries India and Tata Steel, while SAIL is being courted for participation.
The plant, slated for completion by August 2029, will employ a vertical shaft furnace tailored to India's low-grade hematite ore, a challenge not faced by overseas projects that use higher-grade magnetite. CSIR-IMMT is also constructing a 3-tonne-per-day DRI unit to study material behavior before scaling up, and has obtained approval for a separate ₹20 crore rotary-kiln pilot to test up to 30 % hydrogen and bio-char blends in existing steel processes. The initiative aims to slash carbon emissions, lessen reliance on imported coking coal and support India's net-zero commitments.
Why it matters
It could enable low-carbon steel production in India, cutting emissions and dependence on imported coal.
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