Why Steel plants in India rush to produce Green hydrogen?
Till now it was only the oil marketing companies, petroleum refineries , fertiliser plants and power producers are in the process of setting up Green hydrogen plants
After the oil & Gas companies and fertiliser plants, it is time for steel industry to rush for green hydrogen.
No, it is not that they are diversifying in to Green hydrogen production and commercial sale of green hydrogen . But it appears apart from aiming to reduce carbon foot print, there are other objectives to improve efficiency and reduce cost. How ?? Pl do read up to the end.
On March 4, 2024 Jindal stainless commissioned its maiden green hydrogen plant. The plant, located at its stainless steel manufacturing facility in Hisar, was built in partnership with renewable energy firm Hygenco.
it is not just Jindal stainless alone,
In April 2023,Tata Steel Tisco commenced the injection of hydrogen gas using 40 percent of the injection systems in the Blast Furnace at its steel plant in Jamshedpur, marking a significant milestone in the steel industry’s journey towards green and sustainable steelmaking.
Subsequently,Tata Steel and renewable energy company ACME group signed an agreement to set up a Green Hydrogen and Green Ammonia project at its Gopalpur Industrial Park in Odisha. The group plans to set up a nearly 1.3 MTPA (million tonnes per annum) green ammonia production facility.
JSW Steel has tapped its subsidiary, awarding a contract to JSW Energy to set up a 3,800-tonnes-per-annum plant to supply green hydrogen to its steel plant in Vijayanagara.
Another steel major, Kalyani Group, had stated that it is looking at using hydrogen.
And many others are seriously planning towards green hydrogen.
The reasons are !
(1) Hydrogen can be injected directly in to blast furnace to reduce Iron ore to Iron. ( DRI)
The current practice is to use Coke which is imported - as Indian coal said to be of inferior quality with more ash content. Imported Coke price is subject to wide price fluctuation in international commodity market and geopolitical situations make it worse
(2) The use of coke in blast furnace is a carbon intensive process and increase carbon foot print
(3) Hydrogen is also required in Stainless steel production during a heat treatment process called annealing
(4) So hydrogen is an import substitution against coke
(5) Reducing Carbon foot print is definitely an advantage
So , it is win- win situation for steel industry.
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