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India to build first hydrogen-powered steel plant by 2029

A government-backed consortium led by CSIR-IMMT will develop India's first direct reduced iron facility running entirely on hydrogen, targeting significant emissions cuts in the steel sector. The Rs 207-crore pilot project has secured approval from the Ministry of Steel and renewable energy ministry.

LSN India · 13 September 2026

India to build first hydrogen-powered steel plant by 2029

The Council of Scientific and Industrial Research's Institute of Minerals and Materials Technology will spearhead the initiative to construct a 20-tonne-per-day hydrogen-based direct reduced iron (DRI) pilot plant, marking a significant step toward decarbonizing India's steel industry.

The project has received in-principle clearance from both the Ministry of Steel and the Ministry of New and Renewable Energy. The government will fund Rs 113 crore of the total Rs 207-crore investment through the National Green Hydrogen Mission, with consortium partners contributing the remaining capital.

The facility is scheduled for completion by August 2029 and will focus on developing hydrogen-based DRI technology tailored to Indian conditions, with particular emphasis on utilizing domestic iron ore reserves. The consortium comprises CSIR-IMMT, Godavari Power and Ispat Ltd, Lloyd Steel, Jindal Stainless, and Thyssenkrupp Industries India.

The initiative aligns with India's broader efforts to reduce carbon emissions from the steel sector, one of the country's major industrial polluters. The pilot plant will generate critical data on technology feasibility and operational parameters needed for potential commercial-scale deployment across India's steel manufacturing base.