The Steel and Port Ministries have jointly released a comprehensive plan to foster the adoption of hydrogen, with a scheme valued at Rs 570 crore. This initiative is aligned with the broader National Green Hydrogen Mission, with a total budget of Rs 19,477 crore.
Within the Steel Ministry’s budgetary allocation of Rs 455 crore until 2029–30, incentives will be provided to encourage the integration of hydrogen in various processes, such as direct reduction of iron-making, blast furnaces, and the gradual substitution of fossil fuels with green hydrogen. The scheme extends support to pilot projects exploring innovative uses of hydrogen to reduce carbon emissions in iron and steel production.
The guidelines propose a phased approach, allowing steel plants to commence by incorporating a small percentage of green hydrogen, with plans to increase the blending ratio over time incrementally. It emphasises that upcoming steel plants should be equipped to operate with green hydrogen to participate in future low-carbon steel markets globally. The scheme also considers greenfield projects aspiring to achieve 100 per cent green steel production.
Simultaneously, the Ministry of Ports, Shipping, and Waterways (MoPSW) has introduced parallel guidelines to stimulate the adoption of green hydrogen, allocating a budget of Rs 115 crore until FY26.
Under the pilot projects, two focal areas have been identified. Firstly, retrofit existing ships to accommodate green hydrogen-based fuels; secondly, develop bunkering and refuelling facilities in ports along international shipping lanes. This strategic move aims to establish essential infrastructure, including refuelling stations, storage, and distribution networks, creating a more extensive ecosystem for green hydrogen adoption in the maritime sector.