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New Opportunities for Green Steel: MECON Invites Bids for Hydrogen Integration Projects
March 25, 2026
MECON Limited, a leading government consultancy under the Ministry of Steel, has officially issued an Expression of Interest (EoI) to implement pilot projects for utilizing green hydrogen in steel production. This initiative is a major step under the National Green Hydrogen Mission, aimed at replacing traditional fossil fuels like coal and natural gas with clean hydrogen. The goal is to prove the technical and economic viability of “Green Steel” in real-world industrial settings. Bidders have until April 8, 2026, to submit their proposals, with the technical bids scheduled to open on the same day.
The scope of these pilot projects is broad, covering the design, engineering, procurement, and commissioning of hydrogen injection systems. Specifically, the government is looking at three primary methods: using 100% hydrogen in Direct Reduced Iron (DRI) making, injecting hydrogen into existing blast furnaces to cut down on coke consumption, and blending hydrogen with natural gas in vertical shaft units. These projects are expected to be completed within a 36-month timeline. While the government is providing significant financial support—including Central Financial Assistance (CFA)—successful bidders will be responsible for securing project land and arranging the necessary hydrogen supply.
To qualify, participating companies must have experience operating iron or steel facilities in India within the last decade. This ensures that the pilot technologies are integrated into proven industrial environments. The Ministry of New and Renewable Energy (MNRE) has already allocated a substantial budget of over ₹4.5 billion through 2030 to support these transitions in the steel sector. For the industry, this represents a pivotal shift toward meeting global low-carbon standards and reducing the environmental footprint of one of India’s most energy-intensive sectors.
