India is moving towards its first 100% hydrogen-based direct reduced iron (DRI) pilot plant, with the CSIR-Institute of Minerals and Materials Technology (CSIR-IMMT) leading a ₹207-crore national project aimed at developing hydrogen-based steelmaking technology suited to domestic raw materials.
The proposed 20-tonne-per-day pilot has received in-principle approval from the Ministry of Steel and the Ministry of New and Renewable Energy (MNRE). The project is expected to receive ₹113 crore in government support under the National Green Hydrogen Mission, with the balance to be funded by consortium partners.
Hydrogen DRI project targets Indian iron ore conditions
The facility is expected to be completed by August 2029 and will focus on demonstrating a hydrogen-based DRI process under Indian operating conditions, particularly the use of domestic iron ore.
The consortium led by CSIR-IMMT includes Godawari Power & Ispat, Lloyds Metals and Energy, Jindal Stainless and Thyssenkrupp Industries India. Tata Steel has also agreed to join the consortium, while efforts are reportedly under way to involve other major steelmakers, including Steel Authority of India Ltd (SAIL).
Unlike projects that initially blend hydrogen with conventional reducing gases, the proposed facility is designed around a vertical shaft furnace capable of operating entirely on hydrogen.
According to project officials, this full-hydrogen approach is intended to address the technological requirements of low-carbon ironmaking while developing a process that can work with the characteristics of Indian ore resources.
Low-grade hematite presents a key technology challenge
One of the project’s central technical challenges is India’s relatively low-grade hematite iron ore.
Officials involved in the project said several international hydrogen-DRI initiatives have focused on higher-grade magnetite, while Indian steelmaking must contend with different raw-material characteristics. CSIR-IMMT is therefore working on ore processing and reduction technologies that can accommodate domestic feedstock.
This distinction could be important for the eventual commercialisation of hydrogen DRI in India. A technology pathway that performs well with higher-grade ore elsewhere may not automatically translate to India’s resource base without additional beneficiation and process optimisation.
CSIR-IMMT plans intermediate-scale testing
The consortium is not moving directly from laboratory research to the 20-tonne-per-day pilot.
CSIR-IMMT is establishing a separate 3-tonne-per-day DRI facility using its own resources to test the technology at an intermediate scale. Project officials said this step is intended to identify scale-up issues before the larger national pilot is commissioned, as material behaviour can change as operating conditions and equipment size increase.
The project also faces a significant economic challenge. Officials cited current green hydrogen costs of around $5 per kg and said costs would need to fall towards approximately $1 per kg for hydrogen-based steelmaking to become commercially competitive.
The source also puts the current cost premium for green steel at around $200 per tonne compared with conventional fossil-fuel-based steel.
A second pilot explores a transition pathway
Alongside the 100% hydrogen DRI project, CSIR-IMMT has received in-principle approval for a separate ₹20-crore rotary kiln pilot.
That project will examine the injection of up to 30% hydrogen together with biochar into existing DRI processes. It has a ₹7.5-crore government grant and is intended to explore a more gradual decarbonisation pathway for existing steel plants that may not be able to transition directly to completely hydrogen-based production.
The two projects therefore address different stages of the steel sector’s potential transition: one seeks to demonstrate a fully hydrogen-based DRI route, while the other examines how hydrogen and biochar could be incorporated into existing processes.
Bioenergy Business Analysis
The proposed 100% hydrogen DRI pilot is significant because it moves India’s green steel strategy beyond hydrogen blending towards testing an entirely hydrogen-based reduction route. The 20-tonne-per-day scale remains a demonstration stage, but the project’s focus on Indian hematite ore could provide important domestic evidence on whether hydrogen DRI can be adapted to the country’s resource and processing conditions.
The economics will ultimately be as important as the technology. The gap between current hydrogen costs and the level identified by project officials as potentially competitive highlights the dependence of green steel on cheaper hydrogen, efficient renewable power and successful scale-up. The parallel biochar-hydrogen pilot could also prove relevant for steelmakers seeking incremental emissions reductions while the infrastructure and economics for full hydrogen conversion develop.
The project is expected to be completed by August 2029 and will provide a national-scale pilot platform for testing hydrogen-based DRI technology before potential commercial deployment.
Read also: Namibia’s Green Hydrogen sector faces persistent workforce shortage
