As part of the government’s move to replace fossil fuels with green hydrogen in steel manufacturing, MECON Limited has invited proposals from prospective bidders for use of Hydrogen in DRI Pilot Plant, in existing Blast Furnace and in existing DRI Vertical shaft.

The request for Proposal (RfP) document has been uploaded in e-tender mode in Tenderwizard, MECON website and in Central Procurement Portal for which the bid submission date is July 8, 2024.

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The Central public sector undertakings, state PSUs, private sector companies, Indian R&D institutions/Research labs/Academic institutions, indigenous equipment design and manufacturing companies as well as JVs and consortiums of such entities have been invited to submit proposals, the Steel Ministry said on Thursday.

Steel production is one of the sectors that has a great potential for replacement of fossil fuels with green hydrogen.

With the fast-developing technological scenario in respect of renewable energy and electrolysers for the production of hydrogen, it is expected that green-hydrogen based steel may become cost competitive over the next few years, the steel ministry said.

To assess the potential for use of Green Hydrogen in the steel industry, the National Green Hydrogen Mission under the Ministry of New and Renewable Energy is supporting and setting up pilot projects in the steel sector.

A budgetary outlay of Rs 455 crore till FY 2029-30 has been earmarked for the steel sector under the Mission.

The thrust areas under the scheme for considering support for development/selection/validation of commercially-viable technologies, for the utilisation of hydrogen in the steel sector are in the following three categories:

*Pilot project to produce DRI using 100 per cent Hydrogen using vertical shaft.

*Use of Hydrogen in Blast Furnace to reduce coal/coke consumption (Scheme-B).

*Injection of Hydrogen in vertical shaft based DRI making unit to partially substitute the NG/other reducing gas & raise its proportion in a gradual manner with an objective to use the maximum hydrogen.

The objectives of the schemes are to advance technologies and expertise for the utilisation of Hydrogen in the steel-making process.