TERI and Transition Asia have assessed the feasibility of hydrogen-based direct reduced iron (H₂-DRI) technology for commercial-scale green steel production in Andhra Pradesh. The study highlights the state’s renewable energy resources, port infrastructure, and clean-energy policies as key advantages for developing a low-carbon steel industry.
The report estimates hydrogen-based steel production costs at INR 49,800–52,800 per tonne, compared with around INR 46,700 per tonne for conventional BF-BOF steel. It also finds that access to competitively priced renewable power, policy incentives, and hub-based hydrogen could significantly improve project economics and support the development of future green steel exports.
Reference: Energetica India