Gensol Engineering Ltd said it has partnered with Matrix Gas & Renewables Ltd to develop India’s first and largest green hydrogen-powered steel facility.

This initiative, a part of the National Green Hydrogen Mission, aims to revolutionise sustainable steel production by using 100% green hydrogen instead of conventional fossil fuels, Gensol Engineering said in a stock exchange filing.

The project is one of three pilot programmes sanctioned by MECON in collaboration with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE). The consortium’s efforts are expected to establish India as a key player in green steel production, significantly reducing carbon emissions.

The green steel facility will require a total capital expenditure (capex) of ₹321 crore. To encourage such sustainable initiatives, the Government of India will provide incentives covering 50% of the project’s capex.

The plant will employ direct reduced iron (DRI) vertical shaft technology tailored for Indian-grade iron ore. This process converts iron ore into sponge iron, a critical input in steelmaking, without emitting carbon dioxide.

Unlike traditional methods that rely on coal or natural gas, this facility will use green hydrogen from renewable energy, eliminating CO₂ emissions and setting new benchmarks for clean iron production.

The pilot plant will have a capacity of 50 tons per day (TPD) and is expected to pave the way for similar facilities across India.