Simplex Castings Limited, in partnership with a consortium of esteemed organizations, is spearheading a revolutionary initiative to establish India's first green hydrogen-powered Direct Reduced Iron (DRI) plant. This groundbreaking project, with a production capacity of 40 tons per day, aligns with the nation's ambitious National Green Hydrogen Mission and the sustainability goals of the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE).
The consortium, comprising Simplex Castings, BSBK Pvt Ltd, Ten Eighty Investment, and IIT Bhilai, will leverage state-of-the-art vertical shaft technology to transform the traditional steelmaking process. By substituting carbon-intensive fuels with green hydrogen as the primary reducing agent, this innovative approach will significantly reduce carbon emissions, producing only water as a byproduct.
The project, estimated to cost Rs 230 crore, has secured substantial government support of approximately Rs 161 crore (70 per cent of the funding). This significant financial backing underscores India's commitment to promoting green hydrogen technology as a cornerstone of sustainable industrial growth.
Beyond its environmental benefits, this project is poised to drive economic growth by creating jobs and strengthening local supply chains. As India advances its green economy, this pilot plant will serve as a scalable model for clean, sustainable steel production, setting a new benchmark for the industry. By embracing green hydrogen technology, Simplex Castings and its consortium partners are not only contributing to a cleaner and greener future but also reinforcing India's position as a global leader in sustainable industrial practices.
About the Company
Simplex Castings Ltd., established in 1980, is a prominent manufacturer of a diverse range of castings, including SG Iron, Steel, Special Alloys, and Cast Iron. The company operates two manufacturing units in Bhilai and Tedsara, equipped with advanced facilities for casting, fabrication, machining, and assembly. Their product portfolio caters to various industries, such as steel, railways, power, mining, cement, sugar, chemicals, earthmoving, machine tools, shipbuilding, oil and gas, and defence. Simplex Castings Ltd. is renowned for its high-quality products and comprehensive engineering solutions.
The company has a market cap of Rs 231 crore. The stock gave multibagger returns of 594 per cent from its 52-week low of Rs 49.90 per share. Investors should keep an eye on this micro-cap stock.