Gensol Engineering has partnered with Matrix Gas & Renewables to develop India’s first and largest green steel production facility. The project’s total capital expenditure (capex) is estimated at INR 321 crore, with the government of India providing 50% capex incentives to support this initiative.  

Oct 21, 2024

Gensol Engineering, a solar energy consultancy and EPC solution provider,  has partnered with Matrix Gas & Renewables, a company specializing in the development of green hydrogen projects, to develop India’s first and largest green steel production facility. This facility will utilize 100% green hydrogen, marking a significant step forward in sustainable steel production. It is one of three pilot projects sanctioned under the National Green Hydrogen Mission by MECON, in alignment with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE), representing significant technological advancement in sustainable steel production in India.

The project’s total capital expenditure (capex) is estimated at INR 321 crore, with the government of India providing 50% capex incentives to support this initiative.  This investment showcases the shared commitment of both the government and the consortium to promote sustainable development and reduce carbon emissions in the steel industry.

The facility will employ direct reduced iron (DRI) vertical shaft technology to convert iron ore into sponge iron.  This process will support Matrix’s broader goal of establishing similar green steel plants for medium- to small-scale producers in Chhattisgarh, Odisha, and other regions across India. 

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Traditionally, sponge iron was produced with the help of fossil fuels, emitting CO₂ in the process. By replacing fossil with green hydrogen, there will be a better sustainable approach eliminating CO₂ emissions.