India : Gensol Engineering partners with Matrix Gas & Renewables to develop green hydrogen-powered steel facility
Gensol Engineering Ltd, in collaboration with Matrix Gas & Renewables Ltd, is set to develop India’s first green hydrogen-powered steel facility, using 100% green hydrogen instead of fossil fuels. This ₹321 crore project is part of the National Green Hydrogen Mission and aims to cut carbon emissions by using Direct Reduced Iron (DRI) technology. The Government of India will cover 50% of the project’s capex. The pilot plant will have a capacity of 50 tons per day, with future plans targeting small- to medium-scale steel producers across India.
Gensol Engineering Ltd on Monday, October 21, said it has partnered with Matrix Gas & Renewables Ltd to develop India’s first and largest green hydrogen-powered steel facility.
This initiative, a part of the National Green Hydrogen Mission, aims to revolutionize sustainable steel production by using 100% green hydrogen instead of conventional fossil fuels, Gensol Engineering said in a stock exchange filing.
The project is one of three pilot programmes sanctioned by MECON in collaboration with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE). The consortium’s efforts are expected to establish India as a key player in green steel production, significantly reducing carbon emissions.
The green steel facility will require a total capital expenditure (capex) of ₹321 crore. To encourage such sustainable initiatives, the Government of India will provide incentives covering 50% of the project’s capex.
The plant will employ direct reduced iron (DRI) vertical shaft technology tailored for Indian-grade iron ore. This process converts iron ore into sponge iron, a critical input in steelmaking, without emitting carbon dioxide.
Unlike traditional methods that rely on coal or natural gas, this facility will use green hydrogen from renewable energy, eliminating CO₂ emissions and setting new benchmarks for clean iron production.
The pilot plant will have a capacity of 50 tons per day (TPD) and is expected to pave the way for similar facilities across India.
Matrix Gas & Renewables is planning further developments in Chhattisgarh, Odisha, and other regions, targeting small- to medium-scale steel producers.
The consortium developing this innovative project includes Matrix Gas & Renewables Ltd., Gensol Engineering Ltd., the Indian Institute of Technology Bhubaneswar and Metsol AB from Sweden.
Matrix will oversee the entire project lifecycle—from land acquisition and environmental assessments to design, engineering, procurement, logistics, and commissioning.
“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 collaborating with the Government of India and stakeholders to ensure the project’s success under the National Green Hydrogen Mission,” said Chirag Kotecha, Whole-Time Director of Matrix Gas & Renewables Ltd.
This initiative aligns with India’s broader vision of achieving net-zero emissions while enhancing the country’s industrial capabilities.
Shares of Gensol Engineering were trading 0.65% lower at ₹819.9 apiece around 10 am.
