Green Steel, Metals and Mining

The steel sector remains a frontrunner in the use of green hydrogen to decarbonize industrial processes, particularly in direct reduced iron (DRI) production. With rising global emphasis on industrial decarbonisation, green hydrogen is increasingly viewed as a commercially viable alternative, making steel one of the earliest sectors likely to scale its use. This aligns closely with India’s climate goals under the Paris Agreement and updated Nationally Determined Contributions (NDCs).

Steel majors are collaborating across sectors and with initiatives like H2@Scale Workgroup 3, focusing on enabling renewable energy integration and hydrogen infrastructure within steel clusters. The shift from fossil-based thermal and natural gas systems to renewable hydrogen for heat and reduction processes is accelerating decarbonisation, not just in steel but also in the cement and heavy industries.

In Europe, multiple hydrogen-based steel projects have progressed into implementation phases. These include the HYBRIT project in Sweden, GrInHy2.0 in Germany, the Clean Steel Partnership, and the Hydrogen Green Platform, showcasing consortium-led innovation. As of 2025, several pilot and commercial-scale hydrogen DRI plants are operational or under construction, with learnings feeding into global scale-up strategies.

G20 countries, which account for over 85% of global steel production, are now aligning efforts to establish mutually recognized low-carbon steel standards, certifications, and trade frameworks. The 2024 G20 Standards Dialogue, building on 2023 discussions, emphasized harmonization of carbon-intensity benchmarks and tracking mechanisms for green steel products in global markets.

The India-Middle East-Europe Economic Corridor (IMEC), launched in 2023, has begun early-stage infrastructure development and investment alignment. IMEC is expected to be a major enabler of low-carbon industrial trade routes, connecting hydrogen-rich regions with high-demand centres across Asia and Europe.

In India, the India Hydrogen Alliance (IH2A) continues to collaborate with key iron ore– and steel-producing states, the Ministry of Steel, and industry leaders to define a hydrogen roadmap for steel decarbonisation. In April 2023, the Ministry of Steel constituted 13 task forces to develop a comprehensive action plan for green steel, focusing on technology pathways, costs, and policy frameworks. IH2A has been an active contributor to the Task Force on Green Hydrogen, which in 2024 submitted its interim recommendations for pilot projects, standard-setting, and investment incentives to the government. The report on Green Hydrogen in Iron and Steelmaking released in 2024.