Gensol Engineering Limited, specializing in solar EPC joined forces with Matrix Gas & Renewables, a company engaged in natural gas aggregation and green hydrogen, to establish India’s first and largest green steel production facility.
The facility will operate using 100% green hydrogen, marking a major milestone in the shift toward sustainable steel manufacturing. The project is one of three pilot initiatives approved under the national green hydrogen mission, backed by MECON, in collaboration with the ministry of steel and the ministry of new and renewable energy (MNRE), reflecting a major leap forward in clean steel production technology in India.
The project’s total capex is projected to be ₹321 crore, with the government offering 50% capex incentives to support the endeavour. The investment demonstrates the shared commitment of both the government and the consortium to fostering sustainable development and reducing carbon emissions in the steel sector.
The facility will utilize direct reduced iron vertical shaft technology, designed for Indian-grade ore, to convert iron ore into sponge iron. This process is part of Matrix’s broader strategy to set up similar green steel plants for medium and small scale producers in regions such as Chhattisgarh and Odisha.
Traditionally, sponge iron production relies on fossil fuels and emits CO2. By leveraging green hydrogen derived from renewable energy sources, this new method will replace coal and natural gas, significantly reducing CO2 emissions and marking a breakthrough in eco-friendly iron production.
A collaborative effort between Matrix Gas & Renewables Ltd, Gensol Engineering Ltd, the Indian Institute of Technology Bhubaneswar, and Sweden’s Metsol AB, the pilot plant will have a production capacity of fifty tons per day.
Matrix will lead the project from land acquisition and environmental assessments through design, engineering, procurement, and logistics. The project scope includes manufacturing, supply, installation, testing, and commissioning of the facility, along with the development of the necessary infrastructure.
The project aligns with India’s vision for a sustainable future, underscoring the country’s commitment to green energy solutions while advancing its industrial capabilities. As reported by dsij.in, the contract award highlights Matrix’s expertise and successful track record in delivering innovative energy projects.
