India must unlock the potential of natural and nuclear process heat-based hydrogen for its net-zero steel transition

A policy analysis argues that India must diversify its hydrogen production pathways beyond electrolysis-based green hydrogen to achieve net-zero emissions in...

What Happened

A policy analysis argues that India must diversify its hydrogen production pathways beyond electrolysis-based green hydrogen to achieve net-zero emissions in its steel sector by 2070.
Two under-explored routes are highlighted: natural (geologic) hydrogen — occurring in subsurface rock formations — and nuclear process heat-based hydrogen, using high-temperature thermochemical cycles.
India's Department of Atomic Energy has established a nuclear-heat-driven hydrogen production facility at IGCAR, Kalpakkam, using an indigenous Copper-Chlorine (CuCl) thermochemical cycle operating at 530°C; future integration with the 500 MWe Prototype Fast Breeder Reactor is planned.
The Geological Survey of India (GSI) signed an MoU with IIT (ISM) Dhanbad in January 2025 to explore natural hydrogen reserves in geological formations, particularly in the Andaman region.
Meeting India's projected steel demand of ~390 million tonnes annually by 2050 via hydrogen-based direct reduced iron (H₂-DRI) alone would require 21–22 million tonnes of hydrogen per year — exceeding the electricity generation capacity of more than twice India's current installed power base.

Static Topic Bridges

Hydrogen-Based Direct Reduced Iron (H₂-DRI) and Steel Decarbonisation

Traditional steelmaking uses coal and coke in blast furnaces, where carbon serves dual roles: as a thermal fuel and as a reducing agent (producing carbon monoxide that strips oxygen from iron ore). Hydrogen-based DRI replaces carbon with hydrogen as the reducing agent; when hydrogen reacts with iron ore, the by-product is water vapour rather than CO₂. This pathway can reduce emissions intensity by 85–90% compared to conventional blast furnace routes, cutting carbon footprint from approximately 3.8 tonnes CO₂ per tonne of steel to 0.3–0.5 tonnes CO₂ per tonne.

Steel sector contributes approximately 9% of global CO₂ emissions.
India's current emission intensity: approximately 2.65 tonnes CO₂ per tonne of finished steel (target: reduce to 2.20 by 2029–30 per Green Steel Taxonomy).
H₂-DRI + Electric Arc Furnace (EAF) is the globally accepted deep-decarbonisation route for primary steelmaking.
Hydrogen requirement: 55 kg per tonne of steel produced.
India's projected annual steel demand by 2050: ~390 million tonnes, requiring 21–22 million tonnes of hydrogen per year.

Connection to this news: The article challenges the assumption that electrolysis-based green hydrogen alone can supply this demand, pointing to infrastructure constraints and advocating for natural and nuclear hydrogen to diversify the supply mix.

National Green Hydrogen Mission (NGHM) and SIGHT Programme

The National Green Hydrogen Mission was initially announced by the Government of India on August 15, 2021, and formally approved by the Union Cabinet on January 4, 2023. Its overarching goal is to make India a global hub for green hydrogen production, usage, and export, targeting a production capacity of at least 5 million metric tonnes (MMT) per annum by 2030, with associated renewable energy capacity of ~125 GW. The Mission's financial outlay is Rs 19,744 crore. The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, with an outlay of Rs 17,490 crore, provides two financial incentive streams: one for domestic electrolyser manufacturing and one for green hydrogen production.

Mission approved: January 4, 2023 (announced August 15, 2021).
Production target: 5 MMT of green hydrogen per annum by 2030.
Total financial outlay: Rs 19,744 crore.
SIGHT programme outlay: Rs 17,490 crore (largest component).
Phase I (2022–23 to 2025–26): demand creation, domestic electrolyser manufacturing, pilot projects.
Phase II (2026–27 to 2029–30): commercial-scale deployment in hard-to-abate sectors including steel, shipping, and aviation.

Connection to this news: The NGHM's Phase II explicitly targets the steel sector. The article argues that NGHM's electrolysis-centric framework must be complemented by natural and nuclear hydrogen pathways to meet the scale required for net-zero steel.

India's Green Steel Taxonomy

The Ministry of Steel introduced India's Green Steel Taxonomy in December 2024, defining and categorising low-emission steel based on carbon intensity thresholds. The taxonomy creates a market signal for green steel demand, provides a basis for financial support mechanisms (including green bonds and export incentives), and aligns India's steel sector with its 2070 net-zero commitment made at COP26 in Glasgow. It also enables Indian steel producers to maintain competitiveness in international markets where carbon border adjustment mechanisms (such as the EU's CBAM) are being introduced.

Green Steel Taxonomy introduced: December 2024, Ministry of Steel.
India's net-zero target: 2070, committed at COP26, Glasgow (November 2021).
EU Carbon Border Adjustment Mechanism (CBAM): applies a carbon price on imports of steel and other carbon-intensive goods, creating trade pressure on high-emission producers.
Current Indian steel capacity: India is the world's second-largest steel producer.

Connection to this news: The Green Steel Taxonomy provides the regulatory framework within which hydrogen-based decarbonisation routes — including natural and nuclear hydrogen — must be positioned to qualify for green steel classification.

Natural (Geologic) Hydrogen

Natural hydrogen (also called white or gold hydrogen) is hydrogen gas that occurs naturally in the Earth's subsurface through geological processes such as the serpentinisation of ultramafic rocks (reaction of water with iron and magnesium silicate minerals). Unlike blue or green hydrogen, it does not require energy-intensive production via electrolysis or steam methane reforming. While its commercial viability is still under evaluation globally, formations such as ophiolite complexes and deep fault systems are considered prospective resources.

Serpentinisation: primary geological process producing natural hydrogen (water reacts with olivine/pyroxene minerals in ultramafic rocks at depth).
GSI-IIT (ISM) MoU (January 2025): aimed at surveying natural hydrogen potential in India, with the Andaman region identified as a priority area.
If proven commercial, natural hydrogen could provide a carbon-free, low-cost hydrogen source without the large renewable electricity demand of electrolysis.

Connection to this news: Natural hydrogen is presented as an alternative production pathway that could supplement electrolytic green hydrogen at lower infrastructure cost, particularly important given the scale of India's steel decarbonisation challenge.

Key Facts & Data

Steel sector: ~9% of global CO₂ emissions.
India's current steel emission intensity: ~2.65 t CO₂/t finished steel; target by 2029–30: 2.20.
H₂-DRI reduces emissions by 85–90% vs. blast furnace route.
Hydrogen requirement per tonne of steel: 55 kg.
India's projected steel demand by 2050: ~390 million tonnes per annum.
Annual hydrogen requirement for net-zero steel by 2050: 21–22 million tonnes.
Associated electricity demand: 1,100–1,500 TWh per year (more than half India's current ~2,000 TWh annual generation).
National Green Hydrogen Mission approved: January 4, 2023; target: 5 MMT/year by 2030.
NGHM total outlay: Rs 19,744 crore; SIGHT programme: Rs 17,490 crore.
Green Steel Taxonomy: introduced December 2024, Ministry of Steel.
Nuclear hydrogen facility: IGCAR, Kalpakkam — Copper-Chlorine cycle at 530°C.
Planned integration with 500 MWe Prototype Fast Breeder Reactor (PFBR), Kalpakkam.
GSI-IIT (ISM) MoU for natural hydrogen exploration: January 2025.
India's net-zero target: 2070.