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Gurugram-based ACME Group has invested ₹5,000 crore to set up a Direct Reduced Iron (DRI) facility in either India or Oman.
The renewable energy company develops, builds, and operates solar, wind, hybrid, and dispatchable projects.
Context: a direct iron facility produces iron by reducing oxygen from iron ore in a solid state or below melting point. This method is a lot more sustainable than regular iron production as it requires lesser energy and emits fewer greenhouse gases.
The deets: the first phase of the facility will have a capacity of 1.2 million tonnes per annum. It will manufacture green iron which will be further used to produce sustainable steel.
The company has also signed a binding term sheet with Vietnam’s Stavian Industrial Metal for long-term supply of these products.
Why it matters: globally, the green steel market is growing at the rate of 55.6% and is projected to reach a valuation of $129 billion. Investments like these would help India cash in on this growth and help it achieve its net zero emissions target by 2070.
Fortune Business Insights
