Gensol Engineering has partnered with Matrix Gas & Renewables for a green steel production facility using 100% green hydrogen and employing direct reduced iron (DRI) vertical shaft technology to convert iron ore into sponge iron.

The project is one of three pilot projects approved by the Ministry of Steel and the Ministry of New and Renewable Energy (MNRE) under the National Green Hydrogen Mission.

The project’s capital expenditure (CAPEX) is estimated at ₹3.21 billion (~$38.18 million), with the Indian government providing 50% CAPEX incentives.

This technology, created for Indian-grade ore, would help Matrix achieve its larger objective of setting up green steel factories similar to those for medium to small-scale producers in Odisha, Chhattisgarh, and other parts of India. By using green hydrogen generated from renewable energy to replace coal and natural gas, the new method will eliminate CO2 emissions and represent a significant advancement in the manufacturing of clean iron.

Matrix Gas & Renewables, Gensol Engineering, Indian Institute of Technology Bhubaneswar, and Metsol AB (Sweden) will collaborate on this pilot project, which will have a capacity of 50 tons per day (TPD).

Matrix will manage the entire project lifecycle, which includes land acquisition, environmental assessments, and all key phases of design, engineering, procurement, and logistics. The scope of work includes manufacturing, supply, erection, inspection, installation, testing, commissioning, and supporting infrastructure development.

MECON, a government of India enterprise offering design, engineering, consultancy, and contracting services, recently issued a request for proposal for pilot projects on green hydrogen injection in existing blast furnaces and DRI units.

Steel Minister Jyotiraditya Scindia told Parliament in 2022 that the government intends to mandate the use of green steel in government projects to decarbonize one of the most hard-to-abate sectors. Green steel, or low-carbon steel, is steel manufactured without the use of fossil fuels.