Forging a Greener Future: How Green Hydrogen is Reshaping India’s Steel Industry

Updated: November 22, 2025 03:34

Image Source: ET Mnaufacturing

India’s steel industry, responsible for 12% of national greenhouse gas emissions, is undergoing a transformation with green hydrogen. Pilot projects, government initiatives, and private investments are driving decarbonization. By replacing coal in steelmaking, green hydrogen promises cleaner production, aligning with India’s net-zero 2070 target and global sustainability goals.

India’s steel sector, one of the largest in the world, is at a pivotal moment. Traditionally reliant on coal-based processes, the industry contributes significantly to carbon emissions. Now, green hydrogen is emerging as a game-changer, offering a pathway to sustainable steel production while supporting India’s climate commitments.

The Ministry of Steel has outlined a Green Steel Roadmap, emphasizing hydrogen-based direct reduction of iron (DRI) as a key lever for decarbonization. This shift is supported by both government initiatives and private sector investments, positioning India as a global leader in clean steel innovation.

Major Takeaways

Emission Challenge: India’s steel industry accounts for 12% of total greenhouse gas emissions, with 2.54 tonnes of CO₂ emitted per tonne of steel—higher than the global average.

Green Hydrogen Role: Enables direct reduction of iron without coking coal, eliminating most process emissions.

Pilot Projects: Multiple initiatives are underway to integrate hydrogen into steelmaking, with companies like JSW Steel already sourcing green hydrogen from JSW Energy’s new plant in Karnataka.

Government Push: The National Green Hydrogen Mission and Hydrogen Valley Innovation Clusters aim to scale production and reduce import dependency.

Global Positioning: India is emerging as a strong global player in green hydrogen, with potential to export clean fuels like methanol and ammonia.

Coalition Efforts: The India Green Steel Coalition, led by WWF-India and CII, targets a 30% reduction in emission intensity by 2030.

Notable Updates

The Ministry of Steel’s roadmap includes energy efficiency, renewable energy integration, carbon capture, and biochar use alongside hydrogen adoption.

JSW Energy’s plant will supply 3,800 tonnes of green hydrogen annually to JSW Steel, marking India’s largest operational facility.

Industry experts highlight that green hydrogen adoption will not only reduce emissions but also enhance India’s competitiveness in global steel markets.

Conclusion: Green hydrogen is no longer a distant vision—it is actively reshaping India’s steel industry. With government backing, corporate investment, and international collaboration, India is forging a path toward sustainable steelmaking. This transition promises cleaner air, stronger global positioning, and a decisive step toward the nation’s net-zero future.

Sources: Hydrogen Fuel News, Financial ExpressThe Financial Express, Economic Times

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