India is positioning hydrogen at the core of its steel decarbonisation plans, aiming for self-reliance and global leadership through cost reductions, technological innovation, and strategic investments in green steel production by 2047.
India is poised to place hydrogen at the centre of its steel sector’s decarbonisation strategy, driven by rapidly declining hydrogen prices and an ambition to enhance global competitiveness. According to Union Steel Secretary Sandeep Poundrik, speaking at the CII Steel Summit 2025, hydrogen could become a viable alternative to natural gas within five to ten years, placing the ‘DRI plus Hydrogen’ production route as a cornerstone of green steel manufacturing in the country.
Poundrik emphasised the strategic importance of the steel sector in India’s sustainability journey, highlighting its role in decarbonising through cleaner technologies. The direct reduced iron (DRI) process paired with hydrogen presents a promising pathway to produce green steel, potentially transforming the industry by reducing reliance on fossil fuels. The availability of hydrogen at competitive prices is critical; currently, green hydrogen production is costlier than grey hydrogen, presenting an economic challenge, but recent trends show hydrogen costs declining faster than expected, which could accelerate its adoption.
India’s steel industry is notably diverse, with nearly 47% of steel production attributed to some 2,200 medium and small enterprises, which constitute the backbone of the nation’s resilient and distributed steel ecosystem. This contradicts the common notion that a handful of large producers dominate the market. Such a distributed industrial base could facilitate a more flexible and inclusive transition to green technologies.
The government’s vision aligns with achieving self-reliance in the steel sector by 2047, with a target steelmaking capacity of 500 million tonnes, positioning India as a global leader in sustainable steel production. To support this, the Ministry of Steel is collaborating closely with the Ministry of Coal to increase the use of domestic coking coal, aiming to reduce dependency on imports and enhance resource security. Additionally, stringent Quality Control Orders have been implemented to prevent market flooding by cheap, substandard steel, ensuring a level competitive field for all producers.
Economic opportunities from sectors such as defence, space, automotive, and power—areas where high-grade steel demand is surging—are driving investments in the steel industry. Industry leaders also highlight demographic and structural reforms like GST 2.0 that underpin new consumption opportunities, further bolstering demand projections.
While the prospects for hydrogen-based steelmaking are promising, challenges remain. Hydrogen’s role in replacing coal or natural gas in steel production is mostly tied to the DRI route, as its application in blast furnace technology—still the dominant steelmaking process—is limited. Moreover, cost remains a central hurdle, with green hydrogen currently priced between Rs 300-400 per kilogram, compared to grey hydrogen at Rs 160-220 per kilogram. Without a carbon pricing mechanism to internalise emissions costs, hydrogen-based steel production struggles to be competitive. There is also an infrastructural gap, as India’s pipeline networks and storage facilities are ill-equipped for large-scale hydrogen handling, with existing natural gas pipelines limited to low hydrogen blending percentages.
The government acknowledges these constraints and has initiated pilot projects to produce DRI using 100% hydrogen, under the National Green Hydrogen Mission. Such projects are expected to pave the way for scaling green hydrogen technologies, supported by a comprehensive roadmap for energy efficiency, renewable integration, material and process efficiency improvements, carbon capture utilisation and storage (CCUS), and even biochar use in the steel industry.
Global institutions such as the International Energy Agency (IEA) recognise hydrogen’s potential to contribute up to 21% of required emissions reductions in steel by 2050, requiring 48 million tonnes of clean hydrogen annually. India’s steel sector, with its abundant raw materials, skilled labour, and robust domestic market, holds unique potential to leverage hydrogen technologies to become globally competitive while ensuring environmental resilience.
Ultimately, the future growth of India’s steel sector will be underpinned by three critical pillars: strategic investment, self-reliance, and sustainability. Together, these pillars aim to support an economic transition that not only meets burgeoning domestic demand but also establishes India as a benchmark for green steel production worldwide. The collective efforts of policymakers, industry leaders, and technology innovators, as seen at forums like the CII Steel Summit, underscore a committed and multifaceted approach to realising this transformative vision.
- https://www.indiasnews.net/news/278673615/hydrogen-to-replace-natural-gas-in-india-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik – Please view link – unable to able to access data
- https://www.tribuneindia.com/news/decarbonization/hydrogen-to-replace-natural-gas-in-indias-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik – Union Steel Secretary Sandeep Poundrik highlighted at the CII Steel Summit 2025 that declining hydrogen prices could make it a viable alternative to natural gas within five to ten years, central to India’s decarbonisation and global competitiveness. He emphasized the ‘DRI plus Hydrogen’ route as a promising pathway for green steel production and noted significant investment opportunities in sectors like defence, space, automotive, and power, all driving demand for high-grade steel products. Poundrik also addressed misconceptions about India’s steel industry being dominated by a few large producers, revealing that nearly 47% of steel is produced by around 2,200 medium and small enterprises, forming the backbone of India’s resilient steel ecosystem. He stressed the need for self-reliance in the steel sector, working closely with the Ministry of Coal to increase domestic coking coal usage and implementing Quality Control Orders to ensure a level playing field for both domestic and foreign producers. Poundrik set a target of 500 million tonnes of steelmaking capacity by 2047, aiming to position India as a global leader in sustainable steel production. ([tribuneindia.com](https://www.tribuneindia.com/news/decarbonization/hydrogen-to-replace-natural-gas-in-indias-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik?utm_source=openai))
- https://www.drishtiias.com/daily-updates/daily-news-editorials/decarbonising-steel-sector – The article discusses India’s steel sector, which currently produces around 90% of crude steel through blast furnace (BF) and coal-based direct reduced iron (DRI) routes. Hydrogen has the potential to fully replace coal or gas in the DRI process but has a limited role in substituting coke in the BF route. Hydrogen-based steelmaking remains uncompetitive for hydrogen prices above $1/kg, especially without a carbon cost for emissions. Challenges in scaling up net-zero technologies include high costs, with estimates suggesting that setting up DRI steel plants with upstream green hydrogen generation could reach Rs 3.2 lakh per tonne. Additionally, the cost of green hydrogen at Rs 300-400/kg is higher than grey hydrogen at Rs 160-220/kg. Supporting infrastructure is also inadequate for the storage, production, and transportation of hydrogen, and there is a lack of data on potential geological storage sites for carbon capture and storage (CCS) technology. ([drishtiias.com](https://www.drishtiias.com/daily-updates/daily-news-editorials/decarbonising-steel-sector?utm_source=openai))
- https://steel.gov.in/sites/default/files/2025-04/Steel_English_AR_2024%20%281%29.pdf – The document provides a comprehensive overview of the steel sector, discussing various pathways for decarbonisation, including energy efficiency, renewable energy, green hydrogen, material efficiency, process transition from coal-based DRI to natural gas-based DRI, carbon capture, utilisation and storage (CCUS), and the use of biochar in the steel industry. It outlines the strategy, action plan, and roadmap for green transition in the sector. The Ministry of Steel has awarded two pilot projects to produce DRI using 100% hydrogen, aligning with the National Green Hydrogen Mission. ([steel.gov.in](https://steel.gov.in/sites/default/files/2025-04/Steel_English_AR_2024%20%281%29.pdf?utm_source=openai))
- https://www.pv-magazine-india.com/2025/07/31/hydrogen-the-steel-industrys-next-big-step-toward-decarbonization/ – The article discusses the transformative potential of green hydrogen in decarbonising the steel industry. When generated through electrolysis powered by renewable energy, green hydrogen becomes an emission-free fuel capable of transforming the steelmaking value chain. Global institutions like the International Energy Agency (IEA) and the World Economic Forum have positioned hydrogen-based steel production as a central pillar of industrial decarbonisation. IEA estimates that hydrogen could enable 21% of the required emissions reductions in the steel sector by 2050, necessitating up to 29% of the sector’s energy demand, requiring 48 million tonnes of clean hydrogen annually. The article also highlights infrastructure challenges, noting that India’s existing 33,000 km natural gas pipeline grid offers only a temporary workaround, as current networks are typically capped at 3% hydrogen blending by volume due to material limitations. ([pv-magazine-india.com](https://www.pv-magazine-india.com/2025/07/31/hydrogen-the-steel-industrys-next-big-step-toward-decarbonization/?utm_source=openai))
- https://www.tribuneindia.com/news/decarbonization/hydrogen-to-replace-natural-gas-in-indias-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik – Union Steel Secretary Sandeep Poundrik highlighted at the CII Steel Summit 2025 that declining hydrogen prices could make it a viable alternative to natural gas within five to ten years, central to India’s decarbonisation and global competitiveness. He emphasized the ‘DRI plus Hydrogen’ route as a promising pathway for green steel production and noted significant investment opportunities in sectors like defence, space, automotive, and power, all driving demand for high-grade steel products. Poundrik also addressed misconceptions about India’s steel industry being dominated by a few large producers, revealing that nearly 47% of steel is produced by around 2,200 medium and small enterprises, forming the backbone of India’s resilient steel ecosystem. He stressed the need for self-reliance in the steel sector, working closely with the Ministry of Coal to increase domestic coking coal usage and implementing Quality Control Orders to ensure a level playing field for both domestic and foreign producers. Poundrik set a target of 500 million tonnes of steelmaking capacity by 2047, aiming to position India as a global leader in sustainable steel production. ([tribuneindia.com](https://www.tribuneindia.com/news/decarbonization/hydrogen-to-replace-natural-gas-in-indias-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik?utm_source=openai))
- https://www.irishsun.com/news/278673615/hydrogen-to-replace-natural-gas-in-india-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik – Union Steel Secretary Sandeep Poundrik highlighted at the CII Steel Summit 2025 that declining hydrogen prices could make it a viable alternative to natural gas within five to ten years, central to India’s decarbonisation and global competitiveness. He emphasized the ‘DRI plus Hydrogen’ route as a promising pathway for green steel production and noted significant investment opportunities in sectors like defence, space, automotive, and power, all driving demand for high-grade steel products. Poundrik also addressed misconceptions about India’s steel industry being dominated by a few large producers, revealing that nearly 47% of steel is produced by around 2,200 medium and small enterprises, forming the backbone of India’s resilient steel ecosystem. He stressed the need for self-reliance in the steel sector, working closely with the Ministry of Coal to increase domestic coking coal usage and implementing Quality Control Orders to ensure a level playing field for both domestic and foreign producers. Poundrik set a target of 500 million tonnes of steelmaking capacity by 2047, aiming to position India as a global leader in sustainable steel production. ([irishsun.com](https://www.irishsun.com/news/278673615/hydrogen-to-replace-natural-gas-in-india-steel-sector-decarbonisation-drive-boost-global-competitiveness-union-steel-secretary-poundrik?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no exact matches found in recent publications. The earliest known publication date of similar content is October 30, 2025, when BHP and POSCO signed an agreement to advance hydrogen-based low emissions iron. ([reuters.com](https://www.reuters.com/sustainability/climate-energy/bhp-posco-sign-deal-advance-hydrogen-based-low-emissions-iron-2025-10-30/?utm_source=openai)) However, this does not directly reference the specific claims made by Union Steel Secretary Sandeep Poundrik. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative includes updated data on hydrogen costs and production methods, justifying a higher freshness score. No recycled content from low-quality sites or clickbait networks was found.
Quotes check
Score:
9
Notes:
The direct quotes attributed to Union Steel Secretary Sandeep Poundrik are not found in earlier material, suggesting they are original or exclusive. No identical quotes appear in earlier publications. The wording of the quotes matches the context of the report, with no variations noted.
Source reliability
Score:
7
Notes:
The narrative originates from a press release, which typically warrants a high freshness score. However, the reliance on a single source without corroboration from other reputable outlets introduces some uncertainty. The press release is attributed to Union Steel Secretary Sandeep Poundrik, a government official, lending credibility to the information.
Plausability check
Score:
8
Notes:
The claims made in the narrative align with current industry trends and reports. For instance, Ernst & Young’s report indicates that green hydrogen production costs in India are projected to halve by 2030, which supports the narrative’s assertion about declining hydrogen prices. ([steelorbis.com](https://www.steelorbis.com/steel-news/latest-news/ernst-young-indias-green-hydrogen-cost-for-steelmaking-to-halve-by-2030-1409174.htm?utm_source=openai)) The mention of the ‘DRI plus Hydrogen’ production route as a cornerstone of green steel manufacturing is consistent with ongoing efforts in the industry. The narrative lacks supporting detail from other reputable outlets, which is a concern. The tone and language used are consistent with official communications from government officials.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents plausible claims that align with current industry trends and reports. However, the reliance on a single source without corroboration from other reputable outlets introduces some uncertainty. The lack of supporting detail from other reputable outlets is a concern. The tone and language used are consistent with official communications from government officials. Given these factors, the overall assessment is ‘OPEN’ with a medium confidence level.
