More funds for steel sector under hydrogen mission if required: R K Singh

Union Minister R K Singh on Wednesday assured stakeholders that additional funds will be allocated for decarbonisation of the steel sector under National Green Hydrogen Mission, if required.

Singh chaired a meeting of government and industry stakeholders of the iron and steel sector in order to discuss pilot projects under the mission, an official statement said.

Officials of Ministry of New & Renewable Energy, Ministry of Steel and industry representatives from the iron and steel sector participated in the deliberations.

The Union Power and New & Renewable Energy Minister said that the funds available under the mission should be used to develop technology for integration of hydrogen in steel making.

"Some manufacturers have already begun to experiment using green hydrogen in the steel sector. The idea of this meeting is to decide the avenues in which the funds can be channelled to accelerate this transition, through a transparent selection process which also addresses the technology gaps which need to be addressed," he added.

The minister also assured the stakeholders that "if need arises, additional funds can be allocated, besides the Rs 455 crore already allocated for the steel sector under the National Green Hydrogen Mission."

The industry representatives shared their concerns regarding the challenges faced by them for conducting trials. The possibility of executing projects by a consortium was also discussed.

The minister said that all efforts should be made to zero in on the right technology and pathways for decarbonisation of the steel sector.

He underlined the government's thrust on energy transition and how this is important for the iron and steel sector as well.

He stressed that use of green hydrogen in steel making can help decarbonise the sector.

"Our idea is to help you to transition. If we use green hydrogen, then carbon content becomes low; so, we need to think of ways and means of doing that," he said.

He also stated that in the wake of trade barriers being put up by developed countries, energy transition is important for competitiveness of the sector as well.