Gensol Engineering Ltd and Matrix Gas & Renewables Ltd have come together to announce India's very first-ever steel-making facility in the making that shall be powered by Green Hydrogen. The sanction under the National Green Hydrogen Mission is a historic step towards India's quest to decarbonize its industries and move toward cleaner energy solutions.
Gensol Engineering and Matrix Gas & Renewables-led consortium bags the deal for India's largest green steel facility, with estimated capital expenditure for project works tallying INR 321 crore. Fifty percent of that would be funded by the Government of India, which underlines the nation's commitment to sustainable industrial processes. It aligns with the ministry's mission to promote the use of green hydrogen in major industrial applications and the Ministry of New and Renewable Energy.
The plant would utilize DRI technology that utilizes vertical shaft furnishing to create sponge iron from iron ore. For the first time in the world, the facility will not rely on fossil fuels such as coal or natural gas to produce steel but purely utilizes 100% Green Hydrogen that will eliminate carbon dioxide emissions throughout the process. This technology is a new gear in the production of steel, the most carbon-intensive process globally.
This plant would have a capacity of 50 tons per day and would be part of a much larger initiative to develop several Green Steel facilities across India. It would target small and medium-sized steel makers in states like Chhattisgarh and Odisha and will play a significant role in meeting India's green steel production targets. One of the three pilot initiatives cleared under the National Green Hydrogen Mission initiated with the objective of using green hydrogen for industries that so far have been on fossil fuel.
The facility will be designed and engineered, and the procurement and commissioning undertaken in close collaboration with the Indian Institute of Technology Bhubaneswar and Swedish engineering firm Metsol AB. Those partnerships are important in ensuring that the plant is built to the global clean energy production standards and is a model for future green steel plants around the world.
Chirag Kotecha, whole-time director at Matrix Gas & Renewables Ltd., described himself as proud to lead this transformative project, one that had the potential to change India's steel industry. "This facility not only demonstrates our commitment to green hydrogen and sustainable practices but also positions us at the forefront of India's clean energy transition", said Kotecha. In this context, he specified that the project would be linked to the national renewable energy goals and form a launch pad for further cooperation with the Government of India and other important stakeholders.
With the new steel facility based on green hydrogen, it will have a long-term impact on reducing the carbon footprint of the steel industry in the world. A successful project will help in further development of green steel plants not only in India but globally as well.