The major Indian conglomerate will produce green hydrogen, which will be used to power a nearby direct reduced iron (DRI) plant operated by JSW Steel.
The pilot phase is expected to produce 3,800 tonnes of green hydrogen, with reports suggesting it could be the largest green hydrogen deployment for steelmaking anywhere in the world.
The project has been backed through the government’s Production Linked Incentive Scheme, Tranche I of India’s National Green Hydrogen Mission.
The Indian government is pushing to accelerate green hydrogen use in industrial sectors such as steel.
Last year, it launched a Rs. 455 crore ($54m) auction to support hydrogen injection in DRI pilot plants running entirely on hydrogen, as well as trials in blast furnaces and DRI shafts to cut coal and natural gas consumption.
In February 2024, India’s Ministry of New & Renewable Energy (MNRE) also laid out plans to use green hydrogen in the shipping and steel sectors, at a combined cost of Rs. 570 crores ($68.6m).
In terms of deployment, Jindal Stainless (JSL) began using on-site green hydrogen in 2024, though its alkaline electrolyser system was only expected to produce around 71 tonnes per year.
JSW has been expanding across steel, energy and infrastructure, with its steel subsidiary representing one of India’s largest integrated producers.
The Vijayanagar complex itself is also India’s largest single-location steel plant.
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