MECON, an enterprise of the Government of India that specializes in design, engineering, consultancy, and contracting services, has issued a request for proposals for pilot projects focused on injecting green hydrogen into existing blast furnaces and direct reduced iron (DRI) units. The deadline for bid submissions is October 28, 2024, with bids scheduled to be opened on October 29, reported Mercom.
These projects aim to utilize hydrogen in blast furnaces to decrease coal and coke consumption, while also injecting hydrogen into vertical shaft-based DRI units to partially replace natural gas and other reducing gases, maximizing hydrogen usage.
As per the news report, the scope of work includes the preparation and submission of a detailed project report, as well as the design, engineering, procurement, and installation of a hydrogen injection system that integrates with existing systems in both blast furnaces and vertical shaft DRI units.
This tender is part of the National Hydrogen Mission, initiated by the Ministry of New and Renewable Energy (MNRE), which aims to implement pilot projects that replace fossil fuels and fossil fuel-based feedstock with green hydrogen and its derivatives. The Mission promotes pilot projects in the steel sector to evaluate the potential of green hydrogen within the industry, with implementation managed by the Ministry of Steel.
Under the Green Hydrogen Mission, the steel sector has been allocated a total budget of Rs. 455 crore through the financial year 2029-30.
Eligible bidders must be either central or state public sector undertakings or private companies operating a blast furnace in India. For the DRI-making unit, bidders are required to have a vertical shaft-based DRI-making unit in operation in India.
Bidders must assess the current status of their blast furnace for hydrogen injection, including all necessary infrastructure, and submit a concept report detailing hydrogen consumption and a breakdown of capital costs (excluding the costs of hydrogen production, land, etc.).
They are also responsible for arranging the supply of hydrogen or can indicate their annual hydrogen consumption, allowing MNRE to initiate a competitive bidding process for selecting green hydrogen producers and suppliers.
To qualify, bidders must have a positive net worth. Successful bidders will be required to provide a security deposit in the form of a bank guarantee amounting to 3% of the funding amount within two weeks of receiving in-principle approval.
Recently, Jindal Steel & Power (JSPL) and Jindal Renewables announced their intention to invest in green hydrogen production for steelmaking in Angul, Odisha, with plans to integrate green hydrogen into their DRI units.
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