Rs 5,025 Crore Order Book: Solar EPC Company Is Awarded Project For Developing India’s First Green Hydrogen-Powered Steel Facility

The project’s total capital expenditure (capex) is estimated at Rs 321 crore, with the Government of India providing 50 per cent capex incentives to support this ground breaking initiative.

Gensol Engineering Limited (BSE: 542851, NSE: GENSOL), a leading player in the renewable energy sector specialising in solar engineering, procurement and construction (EPC), has partnered with Matrix Gas & Renewables, a key player in natural gas aggregation and green hydrogen, to develop India’s first and largest Green Steel production facility. This facility will utilize 100 per cent Green Hydrogen, marking a significant step forward in sustainable steel production. It is one of three pilot projects sanctioned under the National Green Hydrogen Mission by MECON, in alignment with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE), representing significant technological advancement in sustainable steel production in India.

The project’s total capital expenditure (capex) is estimated at Rs 321 crore, with the Government of India providing 50 per cent capex incentives to support this ground breaking initiative. This investment underscores the shared commitment of both the government and the consortium to promote sustainable development and reduce carbon emissions in the steel industry.

The facility will employ direct reduced iron (DRI) vertical shaft technology to convert iron ore into sponge iron. Developed for Indian-grade ore, this process will support Matrix’s broader goal of establishing similar Green Steel plants for medium- to small-scale producers in Chhattisgarh, Odisha, and other regions across India. Traditionally, sponge iron production relies on fossil fuels, emitting CO2 in the process. By utilizing green hydrogen produced with renewable energy, this new approach will replace coal and natural gas, eliminating CO2 emissions—a major leap forward in clean iron production.

Matrix Gas & Renewables Ltd, Gensol Engineering Ltd, Indian Institute of Technology Bhubaneswar and Metsol AB (Sweden) will collaborate on this pilot plant, which will have a capacity of 50 tons per day (TPD). Matrix will oversee the entire project lifecycle, including land acquisition, environmental assessments and all critical phases of design, engineering, procurement and logistics. The scope of work will cover the manufacturing, supply, erection, inspection, installation, testing and commissioning of the facility, along with the development of supporting infrastructure.

This project aligns with the Government of India's vision for a sustainable future, reinforcing the nation’s commitment to green energy solutions while enhancing its industrial capabilities. The awarding of this contract highlights Matrix’s expertise and proven track record in delivering innovative energy solutions.

About Gensol Engineering Ltd

Established in 2012, Gensol Engineering Limited, part of the Gensol group, provides comprehensive engineering, procurement and construction (EPC) services for solar power plants globally, with a proven track record of installing over 770 MW of solar capacity across ground-mounted and rooftop installations. Committed to sustainability, Gensol is revolutionizing the Indian EV industry by setting up a state-of-the-art manufacturing facility in Pune for electric three-wheelers and four-wheelers, capable of producing 30,000 vehicles annually. Additionally, they offer extensive EV leasing solutions for passenger, fleet and cargo needs, having already leased over 3,000 EVs with plans to expand significantly. Headquartered in India, Gensol specializes in Solar EPC services, having built solar power plants exceeding 590 MWp globally and is dedicated to advancing clean energy and electric mobility solutions.

The promoters of the company bought 53,945 shares and increased their stake to 62.77 per cent in June 2024 compared to 62.63 per cent in March 2024. The company has a market cap of over Rs 3,000 crore and as of June 2024, the company has an order book of Rs 5,025 crore. The shares of the company ex-traded bonus shares in the ratio 2:1 on October 17, 2023. The stock gave multibagger returns of 2,400 per cent in 3 years and has delivered good profit growth of 52.1 per cent CAGR over the last 5 years with a PE of 54x and an ROE of 22 per cent. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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