Why Iron Ore Beneficiation Is Critical For Green Hydrogen–based DRI Steelmaking

As the global steel industry accelerates its transition toward low‑carbon and net‑zero pathways, Green Hydrogen (GH₂)–based Direct Reduced Iron (DRI) has emerged as one of the most promising routes to deep decarbonisation. However, while much of the discourse focuses on hydrogen supply, electrolyser costs, and renewable power, a critical upstream enabler often receives far less attention: iron ore beneficiation.

In reality, large‑scale deployment of GH₂–DRI is not possible without high‑quality, DR‑grade iron ore. Beneficiation is therefore not a peripheral mining activity but it is foundational infrastructure for green steel.

What is Iron Ore Beneficiation?: Iron ore beneficiation increases the iron content (Fe%) and removes impurities like silica, alumina, and phosphorus to make low-grade ore suitable for steelmaking. Through crushing, grinding, and separation techniques (washing, magnetic, gravity), it enhances furnace efficiency, reduces fuel consumption, and improves metal quality.

Why GH₂–DRI demands better iron ore

Unlike the conventional blast furnace–basic oxygen furnace (BF–BOF) route, GH₂–DRI operates under much tighter material quality constraints. Hydrogen reacts selectively with iron oxides, leaving impurities untouched. As a result, ore quality directly determines hydrogen efficiency, furnace stability, and steel quality. Typical GH₂–DRI plants require:

  • Iron content ≥67% Fe
  • Very low levels of silica (SiO₂) and alumina (Al₂O₃)
  • Tight control of phosphorus, sulphur, and alkalis

Most run‑of‑mine iron ores, especially in emerging economies do not meet these specifications without beneficiation. Hence let’s understand why beneficiation is critical.

1. Upgrading iron content for hydrogen efficiency

One of the most direct ways beneficiation supports GH₂–DRI is by increasing the Fe grade of iron ore.

Low‑ and medium‑grade ores (55–62% Fe) contain significant gangue minerals that do not participate in hydrogen reduction. If left untreated, these impurities:

  • Increase the quantity of pellets required per tonne of DRI
  • Raise hydrogen consumption per tonne of steel
  • Lower shaft furnace productivity

Through crushing, grinding, and separation (gravity, magnetic, or flotation), beneficiation upgrades these ores into DRgrade concentrates, making them suitable for hydrogen‑based reduction.

In effect, beneficiation acts as an indirect hydrogensaving lever, which is critical given that hydrogen is the single largest operating cost in GH₂–DRI.

2. Reducing gangue to stabilise shaft furnace operations

GH₂–DRI shaft furnaces are more sensitive to burden quality than blast furnaces. High gangue content can lead to:

  • Poor gas permeability
  • Irregular reduction behaviour
  • Increased sticking and clustering of pellets

Beneficiation helps produce clean, uniform concentrates, enabling the manufacture of pellets with high reducibility, controlled porosity, low swelling and degradation.

This consistency is essential for stable operation under hydrogen atmospheres, where process windows are narrower than in natural‑gas‑based DRI.

3. Impurity control becomes more critical in DRI–EAF routes

In BF–BOF steelmaking, certain impurities can be diluted or removed through slag chemistry and coke interactions. GH₂–DRI–EAF routes, however, are far less forgiving.

Beneficiation plays a key role in reducing:

  • Phosphorus (P) – difficult and costly to remove in EAFs
  • Sulphur (S – affects downstream steel quality
  • Alkalis and chlorides – cause operational challenges in shaft furnaces

For producers targeting automotive‑grade or export‑oriented green steel, upstream impurity control through beneficiation is indispensable.

4. Enabling pelletisation for hydrogenbased DRI

GH₂–DRI relies almost exclusively on DRgrade pellets, rather than lump ore or sinter. High‑quality pelletisation requires narrow chemical composition, consistent mineralogy and low variability across batches.

Beneficiated iron ore concentrates provide the necessary feedstock to produce pellets that can withstand hydrogen reduction without excessive fines generation, swelling, or breakdown.

Without beneficiation, pellet quality becomes inconsistent—posing serious risks to furnace availability and performance.

5. Unlocking lowgrade and complex iron ore resources

Future iron ore supply growth is increasingly expected from low‑grade hematite ores, magnetite ores and complex ores with high alumina and silica. Very few regions globally possess large reserves of naturally high‑grade DR‑quality ore. Beneficiation is what democratises access to GH₂–DRI, enabling countries with lower‑grade resources to participate in the green steel transition.

For countries such as India, Morocco, and several African nations, beneficiation is the bridge between domestic ore availability and globally competitive green steel production.

6. Lifecycle decarbonisation benefits

While beneficiation is energy‑intensive, its system‑level decarbonisation impact is positive:

  • Lower gangue reduces hydrogen consumption in DRI
  • Reduced slag volumes cut electricity use in EAFs
  • Higher yields improve overall material efficiency

When beneficiation plants are electrified and powered by renewable energy, the net lifecycle emissions of green steel decline significantly.

Strategic implications for green steel pathways

For policymakers, investors, and industry stakeholders, the implications are clear:

  • Beneficiation and pelletisation must be treated as core green steel infrastructure
  • GH₂ hubs should integrate mining, beneficiation, pellet plants, hydrogen production, and DRI–EAF facilities
  • Policy support, concessional finance, and long‑term offtake mechanisms will be critical to de‑risk early investments

Ignoring beneficiation risks creating hydrogen‑ready DRI plants without suitable ore, an expensive bottleneck in the transition.

Green hydrogen–based DRI is a cornerstone of the steel sector’s net‑zero future. But its success depends on more than just clean hydrogen. Iron ore beneficiation is the quiet enabler that determines whether GH₂–DRI can scale, compete, and decarbonise effectively.

To summarise:

No largescale GH₂–DRI without largescale, highquality iron ore beneficiation.

As green steel strategies mature, beneficiation must move from the background to the centre of transition planning.

India’s Green Hydrogen Moment: From Mission Mode to Market Scale

If the 2010s were India’s solar decade, the 2020s may well be our green hydrogen decade. In under two years, India has moved from policy intent to real auctions, pilots at ports, and a certification backbone, paving the way for us to lead the next clean-molecule wave.

“Our goal is to produce 5 MMT of green hydrogen annually by 2030”

Prime Minister Narendra Modi

What’s Driving the Momentum

  • A mission with money. The National Green Hydrogen Mission (NGHM) carries an initial outlay of ₹19,744 crore, which includes ₹17,490 crore for SIGHT-linked electrolyzer and production incentives, plus allocations for pilots and R&D
  • Clear targets. NGHM aspires to 5 MMT/year of green hydrogen production by 2030, powered by major build-outs in RE and electrolyzer capacity
  • Global-grade standards. India’s Green Hydrogen Standard caps lifecycle emissions at ≤ 2 kg CO2e per kg H2 essential for credible domestic and export trade
  • Certification framework. The Green Hydrogen Certification Scheme ensures reliable tracking and verification of “green” credentials across the supply chain

“Government will ensure India is competitive in the Green Hydrogen export market”

(then) MNRE Minister R. K. Singh

Markets Are Forming Fast

SECI’s Green Ammonia Tender: Lowest Price Discovery Yet

  • Historic low achieved. In its first-ever auction under SIGHT’s Mode-2A, SECI discovered a record-low price of ₹55.75/kg (~USD 641/MT) for the supply of 75,000MT/year of green ammonia to Paradeep Phosphates, Odisha. This marks a dramatic drop from the ₹100.28/kg (~USD 1,153/MT) in the previous H2Global auction.
  • Bidding competition heats up. Other recent awardees span the price range:
    • NTPC Renewable Energy Ltd: ₹51.80/kg for 70,000 MT/year to Krishna Phoschem, Meghnagar
    • Oriana Power: ₹52.25/kg for 60,000 MT/year to Madhya Bharat Agro Products, Sagar
    • Jakson Green: ₹50.75/kg for 85,000 MT/year to Coromandel International, Kakinada—setting the lowest price yet
    • Onix Renewable: ₹52.50/kg for 50,000 MT/year to GNFC, Gujarat

These bids show a clear, accelerating price compression across the value chain.

Ports & Shipping Pilots

  • India is establishing hydrogen hubs at key ports. A 1 MW Make-in-India GH₂ plant is now commissioned at Kandla Port, scaling to 10 MW (~140 t/year), to service port operations and mobility
  • Strategic plans include transitioning coastal and inland shipping to green fuel within the next ~5 years

“By 2030, India shall have installed electrolyzer capacity of 60–100 GW”

by MNRE Minister Pralhad Joshi²

Why India Matters Globally

  • Emissions impact. NITI Aayog and RMI estimate that green hydrogen could help India avoid ~3.6 Gt CO2 cumulatively by 2050, reinforcing its Net Zero 2070 journey
  • Massive demand. Projected hydrogen demand of ~11 MMT by 2030, with NGHM helping to boost the green share to ~46%, up from ~16% without policy intervention
  • Investment & jobs. The mission is estimated to catalyze ₹8 lakh crore+ in investment and generate ~600,000 jobs across manufacturing, EPC, O&M, logistics, and services

From Pilots to Pipelines: What’s Next

  • Steel: Focus on green hydrogen-based direct reduction and H2-readiness in steel assets, unlocking deep decarbonization
  • Fertilizers & chemicals: Green ammonia and related derivatives, now cost-competitive, are fast becoming attractive offtake anchors
  • Refining: Green molecules can enable near-term decarbonization wins in hydrotreating and desulfurization
  • Mobility & shipping: Port-led hydrogen corridors and green methanol retrofit projects are maturing fast

“The National Green Hydrogen Mission is giving an impetus to innovation, infrastructure, industry and investment”

— Prime Minister Narendra Modi

What to Watch Over the Next 12–24 Months

  • Electrolyzer manufacturing scale-up via SIGHT incentive tranches.
  • Certification & traceability rollout, critical for export access and FTA negotiations.
  • Port-driven hydrogen corridors and industrial cluster integration.
  • SECI’s upcoming offtake tender rounds for green hydrogen and its derivatives.

The Takeaway

Policy clarity + standards + auctions + pilot projects = market formation. With India’s strengths in renewables, manufacturing, and heavy industry, green hydrogen is rapidly becoming a strategic industrial pillar, not just a niche initiative.

Let’s build it: in India, for India, and for the world.

Breaking Barriers: India’s Quest for Indigenous Electrolysers with the Green Hydrogen Mission

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Green hydrogen is no longer a futuristic concept; it is gradually and certainly materialising into reality. This transition holds the potential to steer a global shift towards renewable energy. For many, green hydrogen is now seen as a technology capable of propelling countries and companies towards their net-zero goals.

Today, as we stand at the threshold, it is the perfect moment to tap into hydrogen’s potential. India, recognising the immense promise of this green fuel, has taken steps to promote its productionon a commercial scale.

The Government of India (GOI) announced its first step under the SIGHT program to catalyse domestic productionthroughdevelopments in the National Hydrogen Mission.

Bhupinder Singh Bhalla, Secretary of the Ministry of New and Renewable Energy, shared that the Ministry is making strides in advancing the National Green Hydrogen Mission. He mentioned that MNRE is planning to issue the first tranche of the green hydrogen incentive scheme in the next few months and the second tranche later this year (2023). He revealed that a pre-bid meeting has already taken place, and clarifications will soon follow. The government aims to finalize this initial tranche of the incentive scheme within the mentioned timeline. He emphasized that tranche-II of the scheme is also in the pipeline and is expected to be announced later this year. Bhalla disclosed this information during his address at the fourth international conference on clean energy, organized by the Confederation of Indian Industry.

“Though the demand for hydrogen is at an all-time high, its production encounters substantial hurdles”.

Currently, there are a limited number of global original equipment manufacturers (OEMs) for electrolysers, equipped with advanced technologies and extensive production capabilities, resulting in a massive demand-supply disparity. Particularly in India, this gap is even more noticeable, given the scarcity of fully operational manufacturing units and suppliers until last year.

“The current absence of domestic manufacturers presents a challenge to India’s green hydrogen objectives. Nonetheless, in recent months, Indian electrolyser manufacturing capacity has shown a notable increase to meet the rising demand for green hydrogen.”

According to analysis by Norwegian research firm Rystad Energy, India is on the verge of becoming a key global hub for electrolyser manufacturing, with approximately 8GW of manufacturing facilities expected to commence operations by 2025.

The cumulative capacity of 8GW comprises nine companies engaged in seven factory projects. These projects consist of three joint ventures and three independent investments. Among them, the most significant contributions are from the 2GW factories established through collaboration between Belgium’s John Cockerill and India’s Greenko, as well as Nevada-based Ohmium.

In the recent months, several Indian companies have announced green hydrogen plans including –

  • Reliance Industries: announced to commit $75 billion to green energy.
  • Ohmium: Secured $45m in private funding for the expansion of its existing 500 MW plant in Bengaluru
  • Greenko Group and John Cockerill: to build 2-gigawatt hydrogen electrolyser Gigafactory in India.
  • Indian Oil corporation: teamed up with two private companies to launch a joint venture to develop green hydrogen.
  • Adani group: announced to invest $70 billion by 2030 into renewable energy infrastructure, including green hydrogen.
  • Larsen and Turbo in partnership with Hydrogen Pro (Norwegian electrolyser manufacturer) and H2e Power (Indian fuel-cell manufacturer):  plans to make solid-oxide electrolysers at its Gigafactory.
  • H2e Power: Also plans a 200MW factory to make anion exchange membrane (AEM) electrolysers.
  • GreenH electrolysis: To set up an electrolyser manufacturing plant with a 1 GW capacity in India. GreenH is a joint venture company between Spain-based H2B2 electrolysis technologies and GR group, India.

Additionally, Reliance Industries and Adani Group have pledged to make the world’s cheapest green hydrogen at $1 per kilogram[1].

Electrolyser manufacturing capacity in India in Gigawatt (GW)

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(infographic: India’s emerging electrolyser manufacturing ecosystem)

The National Green Hydrogen Mission

The Green Hydrogen Mission, launched on August 15, 2021, aspires to position India as a net exporter of green hydrogen. The goal of producing 5 MMT of green hydrogen per year by 2030 is ambitious yet achievable. This endeavour goes hand in hand with a significant push for renewable energy, targeting an associated capacity addition of about 125 GW in the country. India’s commitment to these goals illustrates its dedication to a sustainable, eco-friendly future.

Under this program, there are two umbrella sub-missions aiming to facilitate demand creation, production, utilisation, and export of green hydrogen. The first is the Strategic Interventions for Green Hydrogen Transition Program (SIGHT), which aims to fund the domestic manufacturing of electrolysers and the production of green hydrogen. The second is to support pilot projects in emerging end-use sectors and production pathways.

[1]CNBC

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What is an electrolyser and why are they essential?

An electrolyser is a device that harnesses a chemical process called electrolysis. By utilizing electricity, it can effectively split the molecules of water—comprising hydrogen and oxygen—without emitting carbon dioxide into the atmosphere and water as its only by-product. This sustainable production of hydrogen lays a strong foundation for a decarbonized economy.

Currently, there are different types of electrolysers depending on their size and function. The most used types are alkaline and PEM.

Hydrogen electrolyzers offer heightened efficiency in converting electrical energy to hydrogen, making them environmentally friendly and dependable sources of energy. They prioritize safety in usage. Industries like transportation, oil and gas, manufacturing, steel, and chemicals benefit from their versatile applications, enabling cleaner processes and sustainable outcomes.

Electrolysers are an essential component in the green hydrogen production chain, accounting for a significant portion (30-40%) of the levelized costs of hydrogen (LCOH). The localisation of electrolyser manufacturing is a key strategy for India to expedite the development of its green hydrogen ecosystem.

India stands at an advantageous position with a large coastline with access to seawater and abundant sunlight for solar power, wind resources, and strategic geographic location, ideal to produce green hydrogen.Green hydrogen tech is gaining prominence in areas where direct electrification is not feasible. Heavy-duty transportation, long-range transit, specific industrial sectors, and long-term power storage emerge as prime domains for the application of green hydrogen technologies. Leveraging this nascent stage of the industry, India has an opportunity to establish regional hubs, facilitating the export of high-value green products and engineering, procurement, and construction services. This strategic move shall not only promise a sustainable future for India but also pave way for it to play a leading role in the global green hydrogen landscape.

Hydrogen: A Path to a Cleaner Energy Future

The world is heavily reliant on fossil fuels, accounting for 85% of global energy use. With business-as-usual interventions, this trend is projected to lead to a 50% increase in greenhouse gas (GHG) emissions by 2050, causing harm to the environment and is main contributor to climate change. Energy related CO2 emissions accounts for two-thirds of global GHG emissions.

National governments understand these impacts and risks and are actively working towards a sustainable energy future.

Hydrogen energy is becoming crucial as the world shifts towards cleaner energy. Here’s why:

  • It is the simplest and also the most abundant element in the universe(about 75% by mass of the universe is made up of hydrogen and 90% by volume)
  • It has highest energy content of any common fuel by weight (about three times more than gasoline, diesel and natural gas), but it has the lowest energy content by volume (about four times less than gasoline)
  • It produces clean exhaust and by-product obtained is water, when burned and has great potential for decarbonization(Hydro means water and genes means to produce; so, water producer)
  • It, can be produced – separated – from a variety of sources including water, fossil fuels, or biomass, and used as a source of energy or fuel
  • It is Versatile in usage, reducing dependence on fossil fuels and imports and can be utilized from the point of production to the point of consumption including various applications like oil refineries, industries, transport, power generation, domestic, etc. which emit significant amounts of CO2. Hydrogen, can be transformed into electricity to power homes and feed industry, and into fuels for cars, trucks, ships and planes. Thus, it can promote the use of diverse domestic and sustainable energy resources
  • It can be used as an energy storage and can reduce intermittency risks of renewables

However, pure diatomic hydrogen (H2) is not naturally found. It is almost always linked to other elements. So, while hydrogen as a fuel is extremely clean, its production is not. However, several developments are now in place of older alternative hydrogen production technology where green hydrogen is produced from water via electrolysis. Pure hydrogen is a disreputably difficult gas to handle and distribute. It’s the smallest element in the universe, and prone to leak not only through seals and gaskets, but through steel itself. It is highly flammable and forms explosive mixtures with air over a large range of concentrations. To liquefy hydrogen requires chilling to -253˚C, only 20˚C above absolute zero. Where liquefying hydrogen is not practicable, it must be subjected to very significant compression to enable useful quantities to be stored. These are some challenges that need to be addressed before hydrogen can reach its full potential, such as improving production methods, reducing costs, and developing the necessary infrastructure to support a hydrogen-based energy system.

Henceforth, Today, hydrogen is primarily used as a fuel in industrial processes, but there is growing interest in using hydrogen as a clean source of energy for transportation, heating, and power generation.

And Tomorrow, hydrogen is expected to play a larger role in the energy mix, as the demand for clean energy continues to rise and new technologies make it more practical to produce, store, and use hydrogen on a large scale. Hydrogen has the potential to be a game-changer in the transition to a low-carbon future, as it can be produced using renewable energy sources and does not produce harmful emissions when burned.

Here is how, the future of hydrogen energy looks promising, and it is likely to play a crucial role in achieving a more sustainable energy future.