[Government to Fund India's First Hydrogen-Based DRI Pilot Plant]

Published: Sep 15, 2026 18:05

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The Indian government will fund around USD12 million of a USD22 million pilot project to build India's first fully hydrogen-based direct reduced iron (DRI) plant, aimed at cutting steel-sector carbon emissions. Led by CSIR with IMMT, the project targets completion by August 2029, focusing on adapting hydrogen-DRI technology to India's low-grade hematite ore — a tougher challenge than the higher-grade magnetite used in global projects. Unlike private players experimenting with partial hydrogen use, this plant will run on 100% hydrogen via a vertical shaft furnace. For now, green hydrogen costs around USD5/kg (needs to fall to USD1/kg for viability), keeping green steel approximately USD200/tonne costlier than conventional steel.

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