The CSIR-Institute of Minerals and Materials Technology (CSIR-IMMT) will lead a ₹207-crore national pilot project to develop India's first direct reduced iron (DRI) plant running entirely on hydrogen, aimed at reducing carbon emissions from the steel sector. According to reports from PTI, the 20-tonne-per-day pilot project has received in-principle approval from the Ministry of Steel and the Ministry of New and Renewable Energy (MNRE). The facility is expected to be completed by August 2029 and will focus on developing and demonstrating hydrogen-based DRI technology suited to Indian conditions, particularly the use of domestic iron ore. As reported by PTI, CSIR-IMMT Director Ramanuj Narayan confirmed that the facility will use a vertical shaft furnace designed to operate entirely on hydrogen.
The project will receive ₹113 crore in government support under the National Green Hydrogen Mission, with the remaining funding to be contributed by consortium partners. According to PTI, the consortium includes Godavari Power and Ispat Ltd, Lloyd Steel, Jindal Stainless and Thyssenkrupp Industries India. Tata Steel has also agreed to join the consortium, and efforts are being made to bring other major steel producers, including Steel Authority of India Ltd (SAIL), into the project. As reported by PTI, scientist P C Beuria, the head of the Mineral Processing Division at CSIR-IMMT, confirmed that some private steelmakers are currently working on projects involving partial use of hydrogen, with plans to increase its share gradually. However, SP Das, chief scientist emphasized that "in contrast, the CSIR project is focusing on a 100 per cent hydrogen-based DRI plant."
A key challenge will be processing India's relatively low-grade hematite ores, as several international hydrogen-DRI projects use higher-grade magnetite. According to PTI, Beuria said a key challenge will be processing India's relatively low-grade hematite ores, making the Indian raw material challenge different from international projects. Das explained that "globally, the technology is still at the pilot stage, and the Indian challenge is different because of the inferior quality of ore available here." CSIR-IMMT is working on ore processing and reduction technologies to ensure the proposed plant can handle the characteristics of Indian iron ore. The economics of green steel remains a major hurdle, with green hydrogen currently costing around USD 5 per kg and needing to become substantially cheaper at around $1 per kg for hydrogen-based steelmaking to become commercially competitive.
To address technological challenges involved in scaling up, CSIR-IMMT is undertaking intermediate-scale work before moving to the proposed national pilot plant. As reported by PTI, Beuria explained that "the behaviour of materials changes when the process is scaled up, so intermediate-scale testing is important before moving to the 20-tonne-per-day facility." As part of this effort, the institute is setting up a 3-tonne-per-day DRI plant using its own resources to bridge the gap between laboratory-scale experiments and the larger national pilot project. The institute has also received in-principle approval for a separate ₹20-crore rotary kiln pilot project to examine the injection of up to 30 per cent hydrogen along with biochar into existing DRI processes, backed by a ₹7.5-crore government grant. This second project is aimed at providing a transition pathway for existing steel plants that may not be able to immediately shift to 100 per cent hydrogen-based production.
Indigenous development of 100 per cent hydrogen-fired DRI technology is critical for India to decarbonise its steel sector, cut reliance on coking coal imports, and meet its net-zero commitments while retaining self-sufficiency in a strategically vital industry. According to PTI, the project represents a significant step toward India's transition to green steel manufacturing while maintaining domestic production capabilities. At present, green steel production costs around $200 more per tonne than conventional steel produced using fossil fuels. The project represents a major milestone in India's green steel development, with CSIR-IMMT leading the charge to develop technology specifically suited to Indian conditions and raw materials.
