ACME Group is planning to invest about ₹5,000 crore to establish a 1.2 million tonnes per annum (MTPA) Green Hot Briquetted Iron and Green Direct Reduced Iron (HBI/GRI) facility (phase 1) for the production of green steel, according to people familiar with the development.

“Our greenfield facility will produce some of the lowest carbon emission green HBI and DRI products, underscoring our commitment as a leader of clean technology solutions in India,”.

Manoj Kumar Upadhyay, chairman, ACME Group, said on Sunday (October 12, 205) the company said it has executed a binding term sheet with Stavian Industrial Metal for a long-term sale and purchase of 0.8 MTPA of green HBI and DRI on a take or pay/supply or pay basis for a tenure of 10 years.

Stavian Industrial Metal is a Vietnamese corporation specializing in the processing, investment and trading of industrial metal materials, with a vision for sustainable development and innovation in the global metals market.

“This collaboration marks a significant milestone in ACME’s integration of green steel into our portfolio as part of our strategic business expansion,” Mr. Upadhyay said.

The term-sheet will be followed by an offtake agreement wherein ACME Group will make the supply from its planned facility.

ACME Group’s agreement with Stavian Industrial Metal aims to leverage its capabilities in green hydrogen to process HBI and DRI used in the manufacturing of green steel.

“We see this as a natural progression of our business to extend clean energy solutions in helping the transition of grey steel into green steel,” Mr. Upadhyay said.

The green hydrogen for this project will be supplied from ACME Group’s under construction green hydrogen facility. The Green HBI/DRI facility will be located at one of its existing sites, where Green Hydrogen and Renewable Power will be available.

“Necessary applications are being made to the respective authorities. Once we have obtained the required regulatory and authority clearances, construction of the Green HBI/DRI facility will commence,” he said.

The Group is currently in the process of setting up its Green Hydrogen facility in Odisha and is already in advanced stages of constructing a green hydrogen facility in Oman.

David Nguyen Minh Tu, Chairman, Stavian Industrial Metal said, “The partnership is not merely a commercial agreement, but a testament to our shared responsibility in realizing the Net Zero goals – by 2050 for Vietnam and 2070 for India.”

“With a solid foundation, strong financial capacity, and an ecosystem of over 20,000 customers across more than 100 countries, Stavian Industrial Metal is committed to working alongside global partners to build a more sustainable and greener steel industry,” he added.

The global green steel market is experiencing rapid transition, fueled by heightened climate commitments, regulatory requirements, and increasing demand from industries focused on decarbonizing their manufacturing processes and supply chain mechanism creating significant business opportunities for producers and clean technology providers worldwide.

As governments and large corporations mandate decarbonization, demand for low-carbon steel is surging in sectors like automotive, construction, and consumer goods.

Major economies such as Europe, the United States, and China are making substantial investments in advanced green steel technologies, including hydrogen-based interventions to modernize steelmaking processes and significantly cut emissions.