A producer gas (PG) based system for steel hardening, had been developed by the Institute. This developed PG based system consists of a batch type updraft gasifier, an air swirling type PG burner and a hardening furnace. In this developmental work, a local industry engaged in steel hardening was involved. At present, the industry is using a traditional coal based system. In addition to the dependence on conventional fuel, the existing process is labor intensive and creates environmental pollution. On the contrary, the PG based system offers better efficiency, process controllability and environmental acceptability. It accepts wide variety of dry biomass like wood/woody agricultural residues (Ipomoea) and woody saw mill wastes as feedstocks. The PG based hardening system has been installed at the Institute and operated successfully for a cumulative period of 50 h. Sun dried Subabool wood pieces of 20x20x40 mm size were used as fuels. The furnace attained a uniform temperature of 900degreesC within 30 min. One batch load of 20 kg steel takes 2 It for hardening by consuming 15 kg of biomass. This paper outlines the developmental efforts and the progress made so far. Economic analysis of the developed PG based system has been also worked out. (C) 2004 Elsevier Ltd. All rights reserved.