A consortium led by Gensol Engineering Limited and Matrix Gas & Renewables has been awarded a contract to develop India’s first green hydrogen-powered steel facility, the companies announced Monday. The project, estimated to cost ₹321 crore ($38.5 million), will receive 50% capital expenditure support from the Government of India.
The shares of Gensol Engineering Limited were trading at ₹811.60 down by ₹13.65 or 1.65 per cent on the NSE today at 11.45 am.
The facility, one of three pilot projects sanctioned under the National Green Hydrogen Mission, will have a production capacity of 50 tons per day. It will use direct reduced iron vertical shaft technology to convert iron ore into sponge iron, eliminating CO₂ emissions by replacing traditional fossil fuels with green hydrogen.
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The consortium includes IIT Bhubaneswar and Sweden’s Metsol AB. Matrix Gas & Renewables will manage the entire project lifecycle, from land acquisition to commissioning. The facility aims to serve as a model for medium and small-scale producers in Chhattisgarh, Odisha, and other regions across India.
Gensol Engineering, brings its expertise in renewable energy and EPC services to the project. The initiative aligns with India’s broader goals under the National Green Hydrogen Mission to promote sustainable steel production and reduce carbon emissions in the industrial sector.