Indian aluminium producer Hindalco Industries has reached an agreement with Greenko Energies Pvt Ltd to build a renewable energy plant capable of providing continuous 100 MW of electrical power to Hindalco’s Odisha aluminium smelter.
According to local media, the project would involve the building of between 375 MW and 400 MW of solar and wind generated electricity. Plans for the project would include a 25-year offtake agreement with the Aditya Aluminium smelter, which would cut carbon emissions by around 680 thousand metric tons per year.
Upon completion of the project, Hindalco would become India’s first aluminium company that would enjoy 24/7 carbon-free power.
Satish Pai, managing director, Hindalco, told local press that the project is part of its wider push to operate in a climate-friendly manner.
“We have made climate action integral to our business and our expansion plans have been shaped by our ESG focus. The agreement with Greenko is a significant step towards reducing our carbon footprint and cementing our status as the world’s most sustainable aluminium company. We are guided by our long-term commitment of becoming net carbon-neutral by 2050 and we are happy to partner with Greenko in this audacious journey.”
Anil Kumar Chalamalasetty, CEO and managing director at Greenko, said his firm is eager to begin the project.
“In this case, the RE project along with Greenko’s PSP will ensure firm and predictable supply even at individual time block level without any banking support from the grid, unprecedented for RE project globally, thereby committing very high reliability to Hindalco. We look forward to taking this partnership further ahead and contribute to Hindalco’s long term commitment of becoming a net carbon-neutral company by 2050.”
Greenko will take on the design and construction duties and will be part owner and operator of the power plant. The firm would also link up to its hydro pump storage unit in Andhra Pradesh to help keep continuous power to the plant.