Gensol Engineering (Gensol) has joined forces with Matrix Gas & Renewables Consortium (Matrix) to spearhead India’s first green hydrogen-powered steel production facility.
The project will see the establishment of the first green steel production facility to utilise 100% green hydrogen as its energy source. This venture is one of three pilot projects endorsed under the National Green Hydrogen Mission, with the support of MECON, the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE).
Chirag Kotecha, Whole-time Director of Matrix Gas and Renewables, expressed enthusiasm about the project, stating, “We are proud to lead such a transformative project in India’s steel industry. 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.”
With a total capital expenditure estimated at INR 321 crore (US$38m), the project benefits from a 50% capex incentive from the Government of India.
At the core of the facility’s operations will be the direct reduced iron (DRI) vertical shaft technology, which is designed specifically for Indian-grade iron ore.
By using green hydrogen produced from renewable energy, the new facility aims to eliminate carbon dioxide (CO2) emissions typically associated with sponge iron production.
Matrix Gas & Renewables, along with Gensol Engineering and partners including the Indian Institute of Technology Bhubaneswar and Metsol AB of Sweden, will manage the project from conception to execution. The pilot plant will have a capacity of 50 tonnes per day (TPD), signifying a leap toward cleaner iron production.
“We look forward to contributing to the nation’s renewable energy goals and collaborating with the Government of India and key stakeholders to ensure the success of this initiative under the National Green Hydrogen Mission,” Kotecha added.
India’s green hydrogen mission
India is ramping up its efforts in green hydrogen production, targeting production of five million tonnes per year by 2030. According to the Ministry of New and Renewable Energy, various projects are underway, including the National Hydrogen Mission, which aims to promote hydrogen as a clean energy source.
Several states have initiated pilot projects, with a collaboration between GAIL (India) Ltd. and NTPC for green hydrogen production at renewable energy plants. Additionally, companies like Adani Group and Reliance Industries are investing heavily in green hydrogen technologies, with Reliance aiming to produce one million tonnes of green hydrogen by 2025.
India’s steel industry is a major contributor to carbon emissions, producing approximately 300 million tonnes of steel annually, which accounts for nearly 7% of the country’s total CO2 emissions.
By replacing traditional fossil fuel-based methods with green hydrogen in steel production, it is projected that emissions could be reduced significantly. According to industry experts, adopting green hydrogen technologies could potentially lower the carbon footprint of steel production by 50% or more, aligning the industry with India’s broader climate goals.
