Gensol Engineering Limited has partnered with Matrix Gas & Renewables to set up India’s first and largest green hydrogen-powered steel production facility. This pioneering project will use 100% green hydrogen, marking a significant milestone in the country’s efforts to reduce carbon emissions and promote sustainable industrial practices.
The facility, which is one of three pilot projects sanctioned under the National Green Hydrogen Mission by MECON, is being developed in collaboration with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE). This initiative represents a key technological advancement in green steel production in India, aligning with the country’s vision for a sustainable future.
The project’s total capital expenditure (capex) is estimated at INR 321 crore, with the Government of India providing 50% capex incentives. This investment reflects the shared commitment of the government and the consortium to promoting sustainable development and reducing carbon emissions in the steel industry.
The facility will utilise direct reduced iron (DRI) vertical shaft technology, designed specifically for Indian-grade ore, to convert iron ore into sponge iron. Traditionally, sponge iron production has relied on fossil fuels, resulting in significant CO₂ emissions. However, by using green hydrogen produced with renewable energy, this new approach will replace coal and natural gas, eliminating CO₂ emissions and enabling clean iron production. Matrix Gas & Renewables envisions this project as a stepping stone to establishing similar green steel plants for medium- to small-scale producers across India, particularly in regions like Chhattisgarh and Odisha.
The consortium comprises Matrix Gas & Renewables Ltd., Gensol Engineering Ltd., Indian Institute of Technology Bhubaneswar, and Metsol AB (Sweden). The pilot plant will have a capacity of 50 tons per day (TPD). Matrix Gas & Renewables will oversee the entire project lifecycle, including land acquisition, environmental assessments, and all phases of design, engineering, procurement, and logistics. The scope of work covers the manufacturing, supply, erection, inspection, installation, testing, and commissioning of the facility, along with the development of supporting infrastructure.
Chirag Kotecha, Whole-time Director of Matrix Gas & Renewables Ltd., expressed his pride in leading the transformative project, stating, “We are proud to lead such a transformative project in India’s steel industry. This facility not only demonstrates our commitment to green hydrogen and sustainable practices but also places us at the forefront of India’s clean energy transition. We look forward to contributing to the nation’s renewable energy goals and collaborating with the Government of India and key stakeholders to ensure the success of this initiative under the National Green Hydrogen Mission.”
The project underscores India’s commitment to green energy solutions while enhancing its industrial capabilities. By utilising green hydrogen for steel production, the facility aims to set a benchmark for future projects and drive innovation in clean energy applications. The awarding of this contract highlights the consortium’s expertise and proven track record in delivering cutting-edge energy solutions, positioning India as a leader in sustainable industrial practices.
