The agreement, exclusive to the Southeast Asian market, will see Acme supply green hot briquetted iron (HBI) and direct reduced iron (DRI). The deal is described as “take-or-pay/supply,” meaning Stavian must buy the agreed volume even if it doesn’t use it.

The Indian clean energy company will supply the hydrogen-derived materials from its planned 1.2 million tonne-per-year green HBI/DRI facility (Phase 1), estimated to cost around ₹5,000 crore ($600m).

A final offtake agreement will follow the binding terms.

Stavian Industrial Metal, part of the wider Stavian Group, operates a 20,000-partner metals network across 100 countries and aims to lead Vietnam’s green metals supply chain.

“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,” explained Manoj Kumar Upadhyay, Acme Group Chairman.

“Our greenfield facility will produce some of the lowest carbon emission green HBI and DRI products,” Upadhyay added.

The deal marks one of the first large-scale commercial contracts for green HBI and DRI globally, highlighting the push to decarbonise iron and steel production.

However, European hydrogen-based steel projects have been facing mounting uncertainty.

Several producers, such as ArcelorMittal and Thyssenkrupp, have delayed or scaled back their hydrogen plans amid high power costs, policy gaps, and limited hydrogen availability.