JSW Energy plans to launch what could be India's largest green hydrogen plant. The hydrogen produced will be used in the production of green steel. Operations are terminated to start within the next 18-24 months.
The plant will be built in the northern state of Rajasthan. It is expected to produce 3,800 t of H₂ per year, using 25 MW of electricity from renewable sources. This means that the electrolyzer will be about 12 MW in size. It is estimated to be India's largest electrolyzer when commissioned.
“We have already identified the land and the proposal with the government of Rajasthan for necessary incentives and other things are in final stage of approval,” JSW Energy’s CEO Prashant Jain said.
The plant is “on track to be commissioned by March 2025,” he added. However, negotiations on the project and the machinery needed are still ongoing.
Decarbonization through green hydrogen
JSW Steel intends to purchase the hydrogen over the next seven years. It will be used at the Vijayanagar steel mill in the southern state of Karnataka. According to JSW, it is the sixth largest steel mill in the world, with a production capacity of 12 million tons.
JSW Steel CEO Jayant Acharya told investors that the use of green hydrogen was one avenue the company was exploring to “very actively reduce [its] carbon emissions going forward.”
“We would adopt the new upcoming technologies in hydrogen and carbon capture as the technology can be evolved and becomes commercially viable,” he said.
The company is also investing in electric arc furnaces, sourcing electricity from renewable sources and working to increase energy and process efficiency.
“By 2030, our intent is to bring the thermal coal usage to as close to zero as possible,” Acharya said.
Reducing emissions remains a challenge
The iron and steel industry is India's largest source of industrial greenhouse gas emissions. It released around 320 million t of CO₂ in 2022.
If crude steel production in India increases to 576 million t by 2050 as forecast, annual emissions from the industry could reach nearly 900 million t. CO₂. This is estimated by the Rocky Mountain Institute.
The Indian government recently issued a request for proposals to tender 4.5 billion rupees ($55 million) for pilot green steel plants. The government also considered mandating the use of green hydrogen in certain sectors.
(Source: Hydrogeninsight/2023)
