A Boulder company with a patented method to take most of the carbon emissions out of the energy-intensive iron and steelmaking process will use $8 million from the inaugural state industrial tax credit to build a manufacturing plant in Jefferson County, officials said Tuesday.
The patented produces “clean” industrial iron at the temperature of a cup of coffee, rather than the 1,200-degree Fahrenheit furnaces traditionally used in iron and steelmaking, according to Electrasteel Inc, known as Electra. Currently employing more than 130 people, Electra uses an electrochemical process and hopes to cut 30% or more of the carbon emissions from traditional production.
“We founded Electra here in Colorado to decarbonize a carbon-heavy industrial process, and we’re honored to be the inaugural recipient” of the state industrial tax credit, said co-founder and CEO Sandeep Nijhawan.
The new Jeffco plant, planned for opening in 2026, will still be a demonstration-scale facility, but will steeply ramp up production from the Boulder research pilot facility that produces about 100 metric tons of clean iron plates each year. The company announced recently that it completed a capital fundraising round for $186 million to help build the new plant.
Nijhawan said during a tour of the Boulder research lab with Colorado politicians in 2023 that because Electra’s process uses cheap iron ore and sharply reduces energy costs, the method could revive a steel industry in the U.S. that relies on Chinese and other cheaper imports.
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3:26 AM MDT on May 1, 20256:36 AM MDT on May 2, 2025“Cutting emissions in this sector is crucial for meeting climate goals,” said Will Toor, executive director of the Colorado Energy Office. Iron and steelmaking, along with cement manufacturing, have been considered “hard to decarbonize” industries because of the intense heat required that is usually created by fossil fuels.
Colorado’s Industrial Tax Credit Offering has $168 million to award in state credits, and is a competitive process aimed at promoting decarbonization ideas that further Colorado’s goals of 50% emission reductions by 2030. The credits are refundable, meaning if it is more than a company’s state tax obligation, they can receive some of the credit as a cash refund.
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