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Energy

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

As country pursues its net-zero ambitions, emerging hydrogen pathways may reshape one of its most carbon-intensive industries

Subhash Das

Climate change has emerged as the defining environmental challenge of the 21st century. Rising greenhouse gas concentrations, increasing global temperatures, and ecosystem disruptions are now affecting every country, irrespective of geography or economic status. Climate impacts no longer distinguish between developed and developing economies; they represent a common global concern demanding collective action.

The global average temperature has already risen approximately 1.1°C above pre-industrial levels. Existing climate policies and national commitments remain insufficient to restrict warming to 1.5°C. Projections from international climate assessments indicate that unless significant additional interventions occur, the world could experience substantially higher temperature increases by the end of this century.

During the twenty-sixth Conference of Parties (COP26) held in Glasgow in 2021, India announced enhanced climate commitments under the Paris Agreement framework through its Panchamrit strategy and a national target of achieving net-zero emissions by 2070.

However, a fundamental question remains.

How can a rapidly growing economy such as India—with a large population, uneven infrastructure development, industrial growth requirements, resource constraints, and limited access to disruptive green technologies—achieve this ambitious target?

The challenge becomes even more significant when viewed through the lens of industrial decarbonisation.

Beyond atmospheric warming, the Earth’s oceans have absorbed substantial quantities of carbon dioxide, leading to measurable declines in ocean PH. This phenomenon, known as ocean acidification, threatens marine ecosystems and food chains worldwide.

The principal contributors to atmospheric carbon dioxide emissions include:

Transport Sector

  • Road transport

  • Aviation

  • Railways

  • Marine transportation

Energy Sector

  • Power generation

  • Domestic heating and cooling

  • Household fuels

Manufacturing Sector

  • Steel

  • Cement

  • Aluminium

Why steel matters in India’s decarbonisation journey

Steel production remains one of the most difficult sectors to decarbonise. Globally, steel manufacturing contributes approximately nine per cent of total carbon dioxide emissions.

Traditional steelmaking processes are highly dependent on fossil fuels. Carbon embedded within coal and coke serves a dual function: supplying thermal energy required for pyrometallurgical operations and generating carbon monoxide (CO), which acts as the reducing agent for iron ore reduction.

Although steel producers worldwide have implemented several efficiency-enhancing technologies and low-emission interventions, the reductions achieved thus far remain significantly below long-term net-zero requirements.

A transformative technological shift is therefore necessary.

Hydrogen has emerged as one of the most promising alternatives.

When used in hydrogen-based direct reduced iron (H₂-DRI) processes, hydrogen acts as a reducing agent that converts iron ore into metallic iron while producing water vapor instead of carbon dioxide. Such a transition could dramatically reduce emissions from steel manufacturing.

Recognising the importance of this transition, India’s Union Ministry of Steel has introduced a taxonomy for green steel to maintain the competitiveness of Indian steel in global markets and strengthen national climate commitments. India has become one of the first countries to formally define a green steel taxonomy.

The scale of hydrogen required for Indian steel

Engineering assessments for hydrogen-based direct reduced iron combined with electric arc furnace steelmaking generally estimate:

Hydrogen requirement: 50-60 kilograms of hydrogen per tonne of crude steel

A commonly adopted mid-range estimate is: 55 kg H₂ per tonne of steel

Studies project India’s steel demand to increase substantially by 2050, potentially reaching approximately: 390 million tonnes annually

Based on this projection:

Estimated hydrogen requirement ≈ 21–22 million tonnes per year

The challenge becomes even larger when electricity requirements for green hydrogen production are considered.

Hydrogen generated through electrolysis generally requires:

50–55 kWh of electricity per kilogram of hydrogen

Therefore, the electricity required solely for hydrogen production for steel manufacturing could be:

1,100-1,500 TWh annually

India currently generates roughly:

~2,000 TWh annually

This implies that hydrogen production for a fully hydrogen-based steel industry alone would require electricity equivalent to more than half of the country’s present total power generation capacity.

Current renewable generation contributes approximately one-fourth of India’s electricity production.

Consequently, hydrogen production for green steel could require electricity approaching more than twice India’s present renewable generation capacity.

The implications are profound. Achieving complete steel decarbonisation through electrolysis-based hydrogen would require unprecedented expansion in:

  • Solar generation capacity

  • Wind power deployment

  • Energy storage systems

  • Transmission infrastructure

  • Electrolyser manufacturing and deployment

This reality raises an important question:

Can alternative hydrogen sources complement conventional green hydrogen pathways?

Looking underground: The emerging promise of geologic hydrogen

Scientists have long recognised that hydrogen can also occur naturally within the Earth’s subsurface through geological processes. Commonly termed natural hydrogen or white hydrogen, this emerging resource has recently gained considerable global attention.

Understanding its origin is essential for identifying and evaluating potential reserves.

Natural hydrogen can form through several geological mechanisms, including:

  • Serpentinisation reactions in ultramafic rocks

  • Radiolytic decomposition of water

  • Hydrocarbon-water interactions

  • Fracture-induced reduction processes

  • Organic matter cracking

  • Bacterial activity within aquifers and sedimentary basins

  • Primordial hydrogen venting

  • High-temperature metamorphic reactions

Potential natural hydrogen occurrences in India

India possesses several geological environments potentially favourable for natural hydrogen generation and accumulation.

Hard rock formations

Ultramafic rocks such as:

  • Peridotites

  • Serpentinites

  • Dunites

  • Harzburgites

are considered highly prospective because of their mineral compositions and their tendency to undergo hydrogen-producing serpentinisation reactions.

Potential target regions include:

  • Andaman ophiolite complexes

  • Himalayan ophiolites in Ladakh, Manipur, and Nagaland

  • Bundelkhand Craton

  • Dharwad Craton

  • Deccan volcanic provinces

Fractured basement systems

Deep fault systems and fractured basement rocks can provide pathways for hydrogen migration and accumulation.

Oil and gas fields

Hydrocarbon reservoirs and deep sedimentary systems may also host hydrogen generated through biotic and abiotic processes.

Hot water spring systems

Hydrothermal systems associated with hot springs in regions such as:

  • Ladakh

  • Jammu and Kashmir

  • Maharashtra

  • Sikkim

  • Meghalaya

may represent promising exploration targets.

Recent geological initiatives in India

India has recently begun systematic investigations into geologic hydrogen resources.

A significant development occurred with the reported occurrence of natural hydrogen in serpentinised rocks in the Andaman region. This observation has stimulated broader scientific interest in assessing the country’s natural hydrogen potential.

Additional studies are underway focusing on:

  • Ophiolite complexes

  • Deep crustal fault systems

  • Serpentinised ultramafic rocks

Strategic collaboration: GSI–IIT (ISM) partnership for geologic hydrogen exploration

A significant institutional development in India’s geologic hydrogen journey came with the Memorandum of Understanding (MoU) signed between the Geological Survey of India (GSI) and the Indian Institute of Technology (Indian School of Mines), Dhanbad, in January 2025. The collaboration was established to advance scientific exploration of natural hydrogen resources, with initial investigations focused on the Andaman and Nicobar Islands—an area considered geologically promising because of its ophiolitic formations and serpentinised rocks.

The initiative combines GSI’s geological expertise and field exploration capabilities with IIT (ISM)’s strengths in subsurface imaging, geophysics, reservoir characterisation, and simulation-based modelling. The programme is being led through IIT (ISM)’s Subsurface Energy and Storage Systems Laboratory and Exploration Seismic and Simulation Laboratory under the Department of Applied Geophysics.

These efforts aim to understand hydrogen generation, migration, and storage mechanisms under Indian geological conditions.

Nuclear process heat: A parallel hydrogen pathway

Nuclear process Heat for H2 Generation -India in Driver’s seat:

The Department of Atomic Energy (DAE) has inaugurated the world’s first hydrogen production facility driven entirely by nuclear process heat at the Indira Gandhi Centre for Atomic Research (IGCAR) in Kalpakkam, Tamil Nadu.

Current Capacity and Technology 

  • Pilot Scale / Technology Demonstrator: The plant has been deployed as a lab-to-pilot scale technology demonstrator. Because it is designed purely to validate the engineering process rather than mass-produce fuel, the initial operational capacity is kept small and contained within a research framework.

  • The Heat Source: The facility directly couples with the 40 MWt (thermal) Fast Breeder Test Reactor (FBTR). It draws high-temperature process heat continuously from the reactor to split water molecules without relying on fossil fuels or standard electricity.

  • Chemical Process: It utilises an indigenous Copper–Chlorine (Cu–Cl) thermochemical cycle developed by the Bhabha Atomic Research Centre (BARC). This hybrid four-step process operates at peak temperatures of around 530°C, offering superior thermodynamic efficiency compared to traditional water electrolysis.  

Upscaling Prospects  

  • Integration with the 500 MWe PFBR: The primary immediate pathway for upscaling is integration with the 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam, which represents Stage-II of India’s three-stage nuclear programme.

  • Commercialisation for Hard-to-Abate Industries: The operational data gathered from this pilot plant will form the blueprint for industrial-scale commercial deployment. This scales towards supplying emission-free hydrogen for refineries, heavy transport, and steel manufacturing.

The road ahead

India’s transition from a fossil-fuel-driven industrial ecosystem toward a hydrogen-based economy represents one of the largest technological transformations in its history.

The challenge is not merely the production of hydrogen; it is the production of hydrogen at sufficient scale, affordable cost, and practical logistical feasibility.

If India aims for complete hydrogen-based steelmaking by 2050, dependence solely on conventional green hydrogen pathways could create immense pressure on electricity infrastructure.

In this context, geologic hydrogen and nuclear-heat-driven hydrogen production may emerge as important complementary solutions capable of diversifying the energy mix, reducing carbon emissions, and improving long-term energy security.

Moving from possibility to implementation will require coordinated efforts among researchers, industry leaders, technology developers, and policymakers.

A supportive regulatory framework, targeted research investments, and stronger public-private partnerships may ultimately determine whether hydrogen becomes the cornerstone of India’s sustainable industrial future.

The transition may be difficult, but it presents an opportunity to redefine how India produces energy, manufactures steel, and builds a cleaner future.

Subhash Das is former Executive Director at SAIL

Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth