ACME Group and Vietnam’s Stavian Industrial Metal have executed a binding term sheet for long-term sale and purchase of 0.8 MTPA of green HBI (Hot Briquetted Iron) and DRI (Direct Reduced Iron)—two critical raw materials used in steelmaking— on a take-or-pay/supply-or-pay basis for a tenure of 10 years. The term-sheet will be followed by an offtake agreement, under which ACME Group will supply from its planned 1.2 MTPA green HBI and DRI plant (Phase 1). ACME said its project will produce one of the lowest carbon emissions-based Green HBI/DRI using renewable energy and green hydrogen as key imputs.
The green hydrogen for this project will be supplied from ACME Group’s under construction green hydrogen 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,” stated ACME.” ACME sees this as a natural progression of its clean technology solutions business to extend these clean energy solutions in helping the transition of grey steel into green steel.”
Manoj Kumar Upadhyay, Chairman of ACME Group, said, “We are delighted to establish a long-term partnership with Stavian Industrial Metal to deliver sustainable solutions to hard-to-abate sectors such as steel manufacturing. Our greenfield facility will produce some of the lowest carbon emission green HBI and DRI products. This collaboration marks a significant milestone in ACME’s integration of green steel into our portfolio as part of our strategic business expansion.”
David Nguyen Minh Tu, Chairman of Stavian Industrial Metal stated, “The partnership between Stavian Industrial Metal and ACME 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 — for the shared future of Vietnam, India, and the world.”
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