ACME to invest Rs 5,000 crore in green steel facility

ACME Group has announced plans to invest about Rs 5,000 crore to set up a 1.2 million tonnes per annum (MTPA) Green Hot Briquetted Iron and Green Direct Reduced Iron (HBI/DRI) facility in the first phase of its green steel initiative. The move marks a major step in the company’s strategy to expand its clean energy portfolio and support India’s transition to low-carbon industrial production.

Group Chairman Manoj Kumar Upadhyay said that the greenfield plant will produce some of the world’s lowest-emission HBI and DRI products, positioning ACME as a key player in the emerging green steel ecosystem. The project will use green hydrogen sourced from company’s under-construction hydrogen facility, located at one of its existing renewable energy sites.

ACME has signed a binding term sheet with Stavian Industrial Metal, a Vietnam-based metals trading and processing corporation, for the long-term sale and purchase of 0.8 MTPA of green HBI and DRI. The agreement, set for 10 years on a take-or-pay basis, will be followed by a formal offtake contract. The collaboration is expected to strengthen ACME’s international footprint and enable Stavian to meet growing global demand for sustainable steel.

Upadhyay noted that this initiative aligns with global climate goals and helps industries transition from “grey steel” to “green steel.” The venture also aligns with the Indian government’s push for clean industrial development under the National Green Hydrogen Mission.

The global green steel market is witnessing rapid growth as major economies invest in hydrogen-based technologies to decarbonize heavy industries. With tightening climate regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM) coming into effect in 2026, demand for low-carbon steel in automotive, construction, and manufacturing sectors is expected to surge—creating strong opportunities for innovators like ACME.

As per reports, ACME is also about to set up 1.2 MT per year sponge iron plant using green hydrogen. The company is awardee of green hydrogen production capacity from SECI. It has also signed deal with Japan’s IHI Corporation for supply of green ammonia from Odisha to Japan with an investment of Rs 59,000 crore.