Green Hydrogen to Replace Fossil Fuels in India's Steel Industry: Key Technologies & Trends


Dublin, April 10, 2025 (GLOBE NEWSWIRE) -- The "Pathways for a Low-Carbon Technologies for DRI Process in India - A Country Level Analysis: Focus on Hydrogen Production, Storage and Distribution and Technologies to be Integrated in current DRI process" report has been added to ResearchAndMarkets.com's offering.

India's steel sector is transitioning toward low-carbon direct reduced iron (DRI) production methods, propelled by decarbonization imperatives, government mandates, and increasing emphasis on green hydrogen. By 2025, several pilot initiatives and early commercial-scale projects are expected to employ hydrogen blends in conventional gas-based DRI processes, while forging the groundwork for full-hydrogen DRI routes. Simultaneously, expansions in green hydrogen production, storage, and transport infrastructure will reduce dependence on fossil-based reductants (i.e., natural gas or coal), aligning the Indian steel industry with emerging global decarbonization standards.

Over the longer term (2025-2034), India aims to scale domestic hydrogen production - predominantly from renewable energy - for large steelmaking clusters. Low-carbon DRI adoption will significantly curb carbon emissions, especially as ironmaking is one of the country's highest-emitting industrial segments. Ongoing R&D around iron ore quality, reactor designs, and handling of 100% hydrogen further underscores the strategic importance of developing a robust hydrogen supply chain that links capture/compression, pipeline transport, and flexible consumption points within the DRI plants.

Infrastructure Requirements for Hydrogen Production, Storage, and Transportation

  • Production Plants
    • Analysis of Ongoing Production: Predominantly grey hydrogen from fossil sources, with incremental green capacity expansions.
    • Production Type (Installed Capacities): Grey, green, others (blue or turquoise) under development.
    • Upcoming Facilities and Technologies: Electrolyzers (alkaline, PEM, etc.), advanced SMR with carbon capture, novel advanced R&D projects.
    • Key Companies and Technological Advancements: Partnerships among energy, steel majors, and startup ecosystems for cost reductions.
  • Transportation & Storage
    • Existing Infrastructure: Natural gas networks, some dedicated hydrogen pipelines.
    • Improvements Needed: Pipeline repurposing or new builds, compressed or liquid hydrogen fleets, fueling stations.
    • Investment Analysis: Public-private funding for production, distribution, and end-use integration, highlighting progressive government incentives and private capital flows.

India Hydrogen Storage & Transport Market

  • Hydrogen Type
    • Compressed Hydrogen: High-pressure tanks and transport solutions (Type 1, 2, 3, 4) for mobility or industrial delivery.
    • Liquid Hydrogen: Emerging approach for large-scale, long-distance shipping, though still limited by cost and cryogenic complexity.
    • Others: Novel carriers (e.g., ammonia, LOHC) under exploration.
  • Products
    • By Storage: Tanks (Types 1-5), bulk industrial tanks, fueling station storage.
    • By Distribution: Towed trailers, tanker trucks, rail tank cars - transitioning from small pilot to large-scale networks.
  • Consumers
    • Industrial (Ammonia, Refining, Chemicals)
    • Mobility: e.g., forklift fleets, heavy-duty trucking, future FCEV expansions.
  • Geographical Variation: Demand hotspots in West (Gujarat, Maharashtra) and East (Odisha, Jharkhand) for steel/chemical hubs, North (Punjab, Haryana) for upcoming green hydrogen projects, South (Tamil Nadu, Andhra Pradesh) with renewable synergy.

Hydrogen and Natural Gas-Based DRI Process

  • Technologies and Approaches
    • Commercial DRI Processes (MIDREX, Energiron, others) that can integrate hydrogen with minimal modifications.
    • Hydrogen-Enriched Natural Gas: Gradual H? blending for partial CO? reductions.
    • 100% Hydrogen DRI ("Green DRI"): Achieves near-zero process emissions; requires large volumes of low-cost renewable hydrogen.
  • Key Process Modifications
    • Reforming vs. Direct Use: Balancing gas compositions, heat management, and reaction kinetics.
    • Material & Safety Considerations: Handling hydrogen in hot, pressurized conditions, controlling final carbon content.
    • Iron Ore Quality: DRI performance dependent on ore grade and reactivity.
  • Comparative Analysis
    • Energy Efficiency & CO? Reduction Potential: Pure hydrogen offers the greatest decarbonization benefits but with higher feedstock cost.
    • Technical & Economic Viability: Upfront CapEx, operational complexities, supply chain readiness determine success.

Companies & Technology Providers

  • DRI Technology Providers
    • Midrex Technologies (Kobe Steel): Market leader offering gas-based DRI adaptable for hydrogen.
    • Tenova & Danieli (Energiron): Flexible designs enabling incremental H? usage.
    • Primetals (HYFOR): Fluidized-bed solutions supporting partial or full hydrogen use.
  • Key Players in India's DRI Transition: Domestic steel conglomerates (Tata Steel, JSW, SAIL, etc.) forging alliances with global technology firms.

Regulatory and Economic Aspects

  • Regulations & Policies: Government-driven impetus (e.g., National Hydrogen Mission) drives R&D funding, lower green hydrogen costs, and demonstration of pilot plants.
  • Economic Feasibility & Infrastructure
  • Hydrogen Cost Analysis: Falling solar/wind LCOE brightens outlook for electrolytic hydrogen.
  • Natural Gas Market: Pricing, supply constraints can hamper partial hydrogen transitions.
  • CapEx and Investment: DRI retrofits or new greenfield hydrogen-based steel plants are capital-intensive, requiring robust financing solutions.
  • Power Demand: Large renewable capacity expansions critical to ensure cost-competitive hydrogen.
  • Future Outlook
    • Adoption Projections: India's steel capacity expansions, net-zero pledges create impetus for hydrogen-based ironmaking.
    • Tech Innovations: Enhanced reactor designs, dynamic blending, advanced ore preprocessing to reduce required energy and emissions.

Key Topics Covered:

1. Markets: Industry Outlook
1.1 Trends: Current and Future Impact Assessment
1.2 Supply Chain Overview
1.3 Regulatory Landscape
1.4 Stakeholder Analysis
1.5 Market Dynamics Overview
1.6 Infrastructure Requirements for Hydrogen storage and Transportation
1.6.1 Current infrastructure
1.6.1.1 Existing Natural Gas Infrastructure
1.6.1.2 Existing Hydrogen Infrastructure
1.6.2 Required Improvements
1.6.3 Hydrogen Production Plants
1.6.3.1 Analysis of Ongoing Production
1.6.3.2 Production Type and Installed Capacities
1.6.3.3 Upcoming Facilities and Key Technologies
1.6.3.4 Key Companies
1.6.3.5 Upcoming Technological Advancements
1.6.4 Companies Operating Compressed Hydrogen Transport Fleet
1.6.5 Hydrogen Refueling Station
1.6.6 Investment Analysis

2. India Hydrogen Storage & Transport Market by Application
2.1 India Hydrogen Storage & Transport Market by Hydrogen Type
2.1.1 Compressed Hydrogen Demand
2.1.2 Liquid Hydrogen
2.1.3 Others

3. India Hydrogen Storage & Transport Market by Products
3.1 India Hydrogen Storage & Transport Market by Compressed Hydrogen
3.1.1 By Storage
3.1.2 By Distribution

4. India Hydrogen Storage & Transport Market by Consumers
4.1.1 Hydrogen Demand Projection
4.1.1.1 Natural gas market in India: Historical and forecasted growth
4.1.1.2 Industries dependent on hydrogen
4.1.1.3 Identifying green hydrogen 'early adopter' sectors
4.1.1.4 Ongoing developments, tie-ups, and pilot projects
4.1.2 Hydrogen Demand by Region

5. Hydrogen and Natural Gas Based DRI Process
5.1 Technologies and Approaches
5.1.1 Commercially Available DRI Technologies
5.1.1.1 MIDREX Process
5.1.1.2 Energiron (Tenova HYL) Process
5.1.1.3 Other Gas-Based DRI Technologies
5.1.2 Hydrogen-Enriched Natural Gas (Blends)
5.1.2.1 Feasibility of Blending in Existing Plants
5.1.2.2 Case Studies on Hydrogen Blending
5.1.2.3 Challenges in Gas Composition Management
5.1.3 100% Hydrogen DRI (Green DRI)
5.1.3.1 Reaction Mechanism of Hydrogen Reduction
5.1.3.2 Process Design and Modifications for 100% H? Use
5.1.3.3 Commercial and Pilot-Scale Demonstrations
5.1.4 Emerging Concepts and Pilot Projects
5.1.4.1 HYBRIT (Sweden)
5.1.4.2 ArcelorMittal Hamburg (Germany)
5.1.4.3 SALCOS (Germany)
5.1.4.4 Thyssenkrupp's tkH2Steel Initiative
5.1.4.5 Primetals HYFOR Fluidized-Bed DRI
5.1.4.6 Hydrogen Plasma Smelting (SuSteel - Austria)
5.1.4.7 Other Global Hydrogen DRI Pilots
5.2 Key Process Modifications for Hydrogen Transition
5.2.1 Reforming vs. Direct Hydrogen Reduction
5.2.2 Heat Management in 100% Hydrogen Reduction
5.2.3 Gas Flow and Moisture Control in Hydrogen DRI
5.2.4 Materials and Safety Considerations in Hydrogen Systems
5.2.5 Carbon Content Management in Hydrogen-Based DRI
5.2.6 Iron Ore Quality Considerations
5.3 Comparative Analysis of Natural Gas, Hydrogen Blends, and Pure Hydrogen DRI
5.3.1 Energy Efficiency and CO? Reduction Potential
5.3.2 Technical Feasibility and Implementation Challenges
5.3.3 Economic Viability and Cost Considerations

6. Companies and Technology Providers
6.1 Leading DRI Technology Providers and Their Approaches
6.1.1 Midrex Technologies (Kobe Steel)
6.1.2 Tenova & Danieli (Energiron)
6.1.3 Primetals Technologies (HYFOR & Midrex Licensing)
6.1.4 Metso-Outotec and Circored Fluidized-Bed DRI
6.1.5 Other Global Technology Providers
6.2 Key Players in India's DRI Transition
6.3 Global Companies Not yet Operational in India

7. Regulatory and Economic Aspects
7.1 Regulations and Policies Driving Hydrogen/NG Use in DRI
7.2 Economic Feasibility and Infrastructure Challenges
7.2.1 Hydrogen Cost Analysis
7.2.2 Natural Gas Market and Supply Considerations
7.2.3 Capital Expenditure (Capex) and Investment Requirements
7.2.4 Hydrogen Supply Chain and Infrastructure Needs
7.2.5 Electricity Demand for Hydrogen DRI
7.2.6 Raw Material and Ore Supply Chain Considerations
7.2.7 Operating Costs and By-Product Utilization
7.3 Outlook and Future Trends
7.3.1 Projected Adoption of Hydrogen-Based DRI Worldwide vs India
7.3.2 India's Roadmap for Hydrogen Steelmaking
7.3.3 Technological Advancements in Hydrogen-Based Ironmaking

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