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ArcelorMittal has entered into a strategic partnership with Greenko Group, India’s leading energy transition company, to develop a ‘round the clock’ renewable energy project with 975 MW of nominal capacity.
The $0.6 billion (₹4,570 cr) project will combine solar and wind power and be supported by Greenko’s hydro pumped storage project, which helps to overcome the intermittent nature of wind and solar power generation.
The project will be owned and funded by ArcelorMittal, while Greenko will design, construct and operate the renewable energy facilities in Andhra Pradesh.
The project is expected to be completed by mid-2024.
ArcelorMittal’s joint venture company in India, ArcelorMittal Nippon Steel India, will enter into a 25 year off-take agreement with ArcelorMittal to purchase 250 MW of renewable electricity annually from the project.
This will result in over 20 per cent of the electricity requirement at AMNS India’s Hazira plant coming from renewable sources, reducing carbon emissions by about 1.5 million tonnes per year.
The project offers AMNS India the dual benefits of lower electricity costs and lower carbon-di-oxide emissions, and it also provides an attractive return on investment for ArcelorMittal.
Aditya Mittal, CEO, ArcelorMittal said the project will enable the joint venture company AMNS India to reduce both its electricity costs and carbon emissions, besides providing consistent, guaranteed returns for ArcelorMittal.
“Large amounts of green energy are one of the key foundations for both a net zero economy and a decarbonised steel industry. We are excited about the potential of replicating this model in other regions," he said.
Anil Kumar Chalamalasetty, Managing Director, Greenko said the project will serve as a blueprint for adoption of renewable power for large-scale steel manufacturing in India.
These efforts will also represent a notable contribution to India’s own commitment to build 500 GW of renewable energy capacity by 2030, he said.
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