Wedoany.com Report-Oct. 14, India’s ACME Group has finalized a 10-year offtake agreement with Vietnam’s Stavian Industrial Metal for the supply of 800,000 tonnes per year of green hot-briquetted iron (HBI) and direct reduced iron (DRI). The materials will be produced using green hydrogen and renewable energy at ACME’s forthcoming facility in the United Arab Emirates. This contract, one of the largest of its kind globally, supports the first phase of ACME’s project, which targets a total production capacity of 1.2 million tonnes annually.

The agreement marks a significant step in ACME’s expansion into sustainable steel production. Manoj Kumar Upadhyay, Chairman of ACME Group, emphasized its importance, stating: “This collaboration marks a significant milestone in ACME’s integration of green steel into our portfolio as part of our strategic business expansion. Our green HBI and DRI project underscores ACME’s unwavering commitment as a leader of clean technology solutions in India.” The UAE facility will utilize green hydrogen as the primary reductant, positioning it among the lowest carbon-intensive greenfield steel projects worldwide.

Stavian Industrial Metal, with a robust logistics network spanning 40 centers, 30 global offices, and over 20,000 partners across 100 countries, will exclusively distribute the hydrogen-based steel feedstock in Southeast Asia. David Nguyen Minh Tu, Chairman of Stavian Industrial Metal, highlighted the partnership’s broader significance, saying: “The partnership between Stavian Industrial Metal and ACME is not merely a commercial agreement, but a testament to our shared commitment to realizing the Net Zero goals.” This aligns with Vietnam’s target of achieving net-zero emissions by 2050 and India’s pledge for 2070.

The UAE-based facility will leverage renewable energy sources to produce green HBI and DRI, contributing to reduced carbon emissions in steel manufacturing. The agreement supports the growing demand for sustainable materials in industries seeking to decarbonize, particularly in Southeast Asia, where Stavian’s extensive network ensures efficient distribution.

This collaboration strengthens ACME’s position as a pioneer in clean technology, expanding its footprint beyond India into global markets. The use of green hydrogen and renewable energy in the production process reflects a commitment to innovative, low-carbon solutions. For Stavian, the deal enhances its role as a key supplier of sustainable steel feedstock, supporting regional industries and environmental objectives.

The 800,000-tonne annual offtake agreement is a cornerstone of ACME’s phase-one project, which aims to establish a scalable model for green steel production. As the UAE facility progresses, it is expected to create economic opportunities while advancing sustainable industrial practices. The partnership between ACME and Stavian sets a benchmark for international cooperation in clean energy, fostering progress toward global sustainability goals.