Gensol Engineering and Matrix Gas & Renewables are developing India’s first green hydrogen-powered steel facility, reducing CO2 emissions in sponge iron production, supported by government incentives under the National Green Hydrogen Mission.

India: Gensol Engineering Limited, a specialist in solar EPC services, has partnered with Matrix Gas & Renewables, a company focused on natural gas aggregation and green hydrogen, to establish India’s first and largest green steel production facility. The facility will run entirely on green hydrogen, marking a significant step toward sustainable steel manufacturing in the country.

This initiative is part of three pilot projects approved under India’s National Green Hydrogen Mission, with support from MECON in collaboration with the Ministry of Steel and the Ministry of New and Renewable Energy (MNRE). It represents a critical advancement in clean steel production technology within India.

The total capital expenditure (capex) for the project is estimated at ₹321 crore, with the government offering 50% capex incentives to promote the venture. This investment reflects the shared commitment of the government and the consortium to advancing sustainable development and cutting carbon emissions in the steel industry.

The facility will utilize direct reduced iron vertical shaft technology, optimized for Indian-grade ore, to convert iron ore into sponge iron. This is part of Matrix's broader strategy to establish similar green steel plants for small and medium producers in regions such as Chhattisgarh and Odisha.

Traditionally, sponge iron production relies on fossil fuels and emits significant CO2. However, by utilizing green hydrogen sourced from renewable energy, the new facility will replace coal and natural gas, drastically reducing CO2 emissions and revolutionizing environmentally friendly iron production.

The pilot plant, with a production capacity of fifty tons per day, is the result of a collaborative effort between Matrix Gas & Renewables Ltd, Gensol Engineering Ltd, the Indian Institute of Technology Bhubaneswar, and Sweden’s Metsol AB. Matrix will lead the project through the entire process, including land acquisition, environmental assessments, design, engineering, procurement, and logistics. The scope of work also covers manufacturing, installation, testing, and commissioning of the facility, along with the development of the necessary infrastructure.

This project aligns with India’s vision for a sustainable future, reinforcing the country's commitment to green energy solutions while strengthening its industrial capacity.

According to TechSci Research, the development of India’s first green hydrogen-powered steel facility, led by Gensol Engineering and Matrix Gas & Renewables, marks a pivotal moment for the green hydrogen market in India. As a key project under the National Green Hydrogen Mission, this initiative signals the government’s commitment to promoting clean energy solutions and reducing carbon emissions across industries. By demonstrating the feasibility of large-scale green hydrogen applications in steel production, traditionally a CO2-intensive industry, this project sets a precedent for the broader adoption of green hydrogen across other heavy industries.