Gensol and Matrix Gas Launch India’s First Green Steel Facility

Gensol and Matrix Gas Launch India’s First Green Steel Facility

Gensol Engineering Limited and Matrix Gas & Renewables have partnered to establish India’s first and largest Green Steel production facility. This facility will utilize 100% Green Hydrogen for production.

The project is one of three pilot projects sanctioned under the National Green Hydrogen Mission. MECON, the Ministry of Steel, and the Ministry of New and Renewable Energy support it.

The total capital expenditure for the facility is estimated at INR 321 Crore. The Government of India will provide 50% of the capex as incentives. This funding supports sustainable development and carbon emission reduction in the steel sector. The facility will employ direct reduced iron (DRI) vertical shaft technology. This technology will convert iron ore into sponge iron, designed for Indian-grade ore. The project also supports plans for additional Green Steel plants in Chhattisgarh, Odisha, and other regions.

Traditional sponge iron production relies on fossil fuels and emits CO₂. The new facility will use green hydrogen produced from renewable energy. This method replaces coal and natural gas, eliminating CO₂ emissions in the process.The consortium for this project includes Matrix Gas & Renewables, Gensol Engineering, the Indian Institute of Technology Bhubaneswar, and Metsol AB from Sweden. The pilot plant will have a production capacity of 50 tons per day (TPD).

Matrix Gas & Renewables will manage the entire project lifecycle, which includes land acquisition, environmental assessments, design, engineering, procurement, and logistics. The project scope covers manufacturing, supply, erection, inspection, installation, testing, and commissioning of the facility, along with the development of necessary infrastructure. Chirag Kotecha, Whole-time Director of Matrix Gas and Renewables, stated that this project highlights the commitment to green hydrogen and sustainable practices. The initiative aligns with India’s renewable energy goals and strengthens industrial capabilities.