Steelmakers using hydrogen to reduce iron ore (DRI) or to cut coke in blast furnaces - the largest long-term domestic use, still at pilot scale.
In a DRI shaft, hydrogen strips oxygen from iron ore pellets instead of coal or gas, leaving water instead of CO2. In a blast furnace, injected hydrogen replaces part of the coke. Either way the steel plant needs a large, steady hydrogen supply on site.
Steel is India's largest industrial emitter, and EU carbon border charges make low-carbon steel a trade issue. JSW Energy commissioned a 3,800-tonne-a-year green hydrogen plant for JSW Steel's Vijayanagar DRI unit on 11 Nov 2025. The mission approved three steel pilots (Matrix Gas, Simplex Castings, SAIL) with ₹347 Cr of support in Oct 2024; fresh calls for pilot bids followed in 2026 (MECON in Mar, a Ministry of Steel-MNRE call in Jun).
Potentially the biggest domestic market by 2040, but today pilots only. The steelmaker captures value as a green-steel premium with export customers; the hydrogen supplier earns a contracted price.