India’s Bold Leap: Decoding the EoI for Green Hydrogen Pilots in Steel – A Gateway to Sustainable Innovation

India has taken a decisive step toward decarbonizing one of its most emission‑intensive sectors with the release of a major Expression of Interest (EoI) inviting pilot projects that integrate green hydrogen into steel production. Issued by MECON Limited on behalf of the Ministry of Steel (MoS) and the Ministry of New & Renewable Energy (MNRE), the EoI marks a pivotal moment under the National Green Hydrogen Mission.

Dated 19 January 2026 (EoI No. 11.51.91C0/EOI/Hydrogen/02), the tender seeks proposals for hydrogen‑based interventions across multiple steelmaking routes. Following two deadline extensions, bids are now due by 24 February 2026 at 15:00 IST, with opening scheduled the same day at 16:00 IST.

A Strategic Push Under a ₹19,744‑Crore Mission

The EoI is anchored in the National Green Hydrogen Mission, approved in January 2023, which aims to position India as a global hub for green hydrogen production and use. Steel—responsible for nearly 7–9% of global CO₂ emissions—is a priority sector for early adoption.

With renewable energy and electrolyzer prices falling, hydrogen‑based steelmaking is emerging as a commercially viable alternative. The EoI seeks to accelerate this transition through targeted pilot demonstrations.

Four Schemes Targeting Key Steelmaking Pathways

The tender outlines four distinct schemes:

• Scheme A: 100% hydrogen‑based Direct Reduced Iron (DRI) using a vertical shaft furnace.

• Scheme B: Hydrogen injection into existing blast furnaces to reduce coke consumption.

• Scheme C: Hydrogen blending in existing vertical shaft DRI units, replacing natural gas or other reductants.

• Scheme D: Technology‑agnostic innovations aimed at deep emission cuts.

Bidders may apply to multiple schemes, though entities already funded under the Mission cannot repeat the same scheme.

Funding Structure and Scope

The EoI offers significant capital support:

• Up to 50% of project cost for Schemes B and C.

• Up to 70% for Schemes A and D when implemented through consortia, including DPR preparation.

Funding excludes hydrogen production, land, and taxes. However, bidders may indicate annual hydrogen requirements for potential procurement support from MNRE—an unusual provision that broadens participation for smaller players.

A total of ₹455 crore has been earmarked for steel under the Mission through FY 2029‑30, with approximately ₹290 crore still available.

The bidder’s scope spans land finalization, technology selection, DPR preparation, engineering, procurement, installation, commissioning, and operation until project objectives are met.

Eligibility and Submission Requirements

Technical Criteria

Applicants must demonstrate experience in iron and steel production or operations, with scheme‑specific requirements. Consortia—comprising PSUs, private firms, R&D institutions, academic bodies, and foreign partners—are permitted for Schemes A and D.

Financial Criteria

• Positive net worth as of 31 March 2025.

• Average annual turnover of at least 40% of the proposed project cost over the past three years.

Submission Details

• Open tender; one bid per scheme.

• Processing fee: ₹1,770 (including GST).

• Bid validity: 120 days.

  
  

Required documents include bidder information, consortium agreements, technical proposals, financial statements, concept reports, and IPR acceptance.

Evaluation and Implementation Framework

The evaluation will follow a two‑stage process—techno‑commercial assessment followed by financial evaluation.

Schemes A & D

• 80% technical

• 20% financial

Schemes B & C

• 75% technical

• 25% financial

Multiple bidders may be selected per scheme, subject to fund availability.

The EoI also outlines intellectual property guidelines, a 3% security deposit, optional 20% advance against bank guarantee, milestone‑based fund disbursement, and penalties for delays.

A Game‑Changing Moment for India’s Green Hydrogen Ambitions

The initiative is widely viewed as a catalyst for India’s emerging green steel ecosystem. By supporting real‑world pilots, the government aims to validate hydrogen‑based processes, build domestic capability, and prepare the industry for tightening global carbon regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM).

Experts note that the EoI’s flexible design—particularly its openness to consortia and potential hydrogen procurement support—could unlock participation from startups, research institutions, and smaller steel producers.

The pilots are expected to lay the groundwork for future hydrogen applications in other hard‑to‑abate sectors, including cement and chemicals.

#GreenHydrogen #SustainableSteel #IndiaInnovation #NetZero #NationalGreenHydrogenMission #CleanEnergyTransition