Announcement comes as a new round of state funding opens for industrial projects
Jefferson County - Tuesday, May 6, 2025 - The Colorado Energy Office (CEO) announced Tuesday an award of up to $7.99 million in tax credits to Electrasteel, Inc. (Electra) through the state’s Colorado Industrial Tax Credit Offering (CITCO). The funds will assist in building a new manufacturing facility that will use an industry-leading “clean iron” manufacturing technology, which will significantly reduce the greenhouse gas emissions from iron production compared to conventional methods.
“The industrial sector is challenging to decarbonize, and CITCO is a valuable tool to support innovative technologies that reduce pollution and support economic development,” said CEO Executive Director Will Toor. “Ironmaking, in particular, can be a very energy and carbon-intensive process, so cutting emissions in this sector is crucial for meeting climate goals. We are grateful for the opportunity to support Electra’s work.”
With assistance from the funding, Electra is building a manufacturing facility in Jefferson County to produce clean iron. Founded in 2020 in Boulder, CO, Electra is reinventing ironmaking from the ground up to produce iron for steel and batteries while reducing industrial emissions. By refining iron ore into high-purity iron using an electrochemical process at low temperatures, Electra’s technology could reduce the greenhouse gas emissions from iron production by 30% or more. Electra currently employs more than 130 people.
CITCO applications open on a bi-annual basis (on April 1 and Oct 1) until the end of 2032, or until all tax credits are reserved. The third cycle of applications is currently open until June 30. CITCO is a competitive tax credit process that will award a total of $168 million in refundable tax credits to support industrial decarbonization project identification, development, and implementation. CITCO determines awards based on the project’s demonstrated innovativeness, proximity to a disproportionately impacted community or a nonattainment area, project readiness, expected co-benefits (environmental and non-environmental), additional resources leveraged by the applicant, and impact on annual GHG emissions.
“We founded Electra here in Colorado to decarbonize a carbon-heavy industrial process, and we're honored to be the inaugural recipient of the Colorado Industrial Tax Credit Offering," said Sandeep Nijhawan, co-founder and CEO of Electra. “Conventional iron and steel production is responsible for nearly 10% of global carbon emissions, but we're tackling this challenge using chemistry and clean energy to produce clean iron. The CITCO award helps us build our demonstration plant in Colorado to reinvent ironmaking and reshape heavy industries for a cleaner, more secure future."
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