Landmark 10-Year Supply Agreement Announced
India’s clean energy innovator ACME Group has signed a binding term sheet with Vietnam’s Stavian Industrial Metal to supply 800,000 tonnes per year of green hydrogen–based Hot Briquetted Iron (HBI) and Direct Reduced Iron (DRI) for the next decade. This deal ranks among the world’s largest long-term green iron offtake agreements, marking a major commitment to decarbonization in Southeast Asia’s steel sector and global sustainable industrial development.
Details of the ACME–Stavian Green Steel Partnership
Under the agreement, Stavian will procure green steelmaking feedstock from ACME’s upcoming 1.2-million-tonne-per-year green iron plant. Using renewable electricity and advanced electrolyzer systems, ACME produces green hydrogen that substantially lowers emissions compared with traditional coal-based steelmaking. The contract includes “take-or-pay / supply-or-pay” provisions to ensure stable supply and demand over the ten-year term.
Strategic Goals and Industrial Impact
ACME Chairman Manoj Kumar Upadhyay highlighted the partnership as part of the company’s strategy to decarbonize “hard-to-abate” sectors such as steel, which accounts for about 8% of global CO₂ emissions. The initiative supports Vietnam’s transition toward green steel through renewable power and sustainable hydrogen technologies. Stavian, operating in more than 100 countries, is emerging as a key player in Southeast Asia’s green metals supply chain. Both firms align with national net-zero pathways—India targeting 2070 and Vietnam targeting 2050.
Global Trends Driving Green Steel Demand
The agreement aligns with rising global demand for low-carbon steel, driven by climate policies, the EU Carbon Border Adjustment Mechanism (CBAM), and consumer preference for sustainable products. As Asian industrial economies face stricter environmental standards and seek export competitiveness, green HBI and DRI are becoming essential. Vietnam’s steel sector views this cooperation as a decisive step in its decarbonization roadmap.
Broader Significance for India and Vietnam
ACME’s ₹5,000 crore investment in the new green iron plant highlights India’s commitment to sustainable industrial expansion. The partnership stands as a model for cross-border collaboration leveraging clean technologies to reduce industrial emissions. If executed successfully, this long-term supply agreement could accelerate green steel adoption across the Asia-Pacific region, supporting technology transfer, sustainable investment, and expansion of renewable hydrogen solutions.
