This firm is investing ₹5,000cr to make green steel
What's the story
ACME Group has announced plans to invest around ₹5,000 crore in a new facility for producing green steel. The proposed plant will have a capacity of 1.2 million tons per annum (MTPA) and will focus on manufacturing Green Hot Briquetted Iron and Green Direct Reduced Iron (HBI/GRI). This investment is part of ACME's broader commitment to clean technology solutions in India.
Strategic partnership
Strategic partnership with Vietnam's Stavian Industrial Metal
ACME Group has signed a binding term sheet with Vietnam's Stavian Industrial Metal for the long-term supply of 0.8 MTPA of green HBI and DRI. The deal, which is on a take-or-pay/supply-or-pay basis, will last for 10 years. This partnership is seen as a major step in ACME's strategy to integrate green steel into its business expansion plans.
Production process
Green hydrogen to power production
The green steel production at ACME Group's facility will use green hydrogen, which will be sourced from the company's under-construction green hydrogen facility. The green HBI/DRI plant will be set up at one of ACME's existing sites, where both green hydrogen and renewable power are available. The company is currently working on its green hydrogen facility in Odisha and has also started constructing a similar facility in Oman.
Market trends
Global green steel market and its potential
The global green steel market is rapidly evolving, driven by increased climate commitments, regulatory mandates, and rising demand from decarbonizing industries. Major economies like Europe, the US, and China are investing heavily in advanced green steel technologies such as hydrogen-based solutions to transform steelmaking processes and drastically reduce emissions. This shift is creating major business opportunities for producers and clean technology providers around the world.