The Aditya Birla Group company Hindalco Industries has entered into an agreement with Greenko Energies, an energy transition company to set up renewable energy project to supply 100 MW round-the-clock carbon free power to Aditya Aluminium smelter in Odisha.
The arrangement covers development of about 400 MW solar in phase-I and 1,000 MW in Phase-II with cumulative investment of $950 million (₹7,600 crore). Greenko will design, construct, partly own and operate the solar and wind facilities.
The RE project will be set up as a captive generation facility under a 25-year off-take arrangement. The carbon-free power will enable the smelter to reduce carbon-dioxide emissions by 6,80,000 tonnes annually.
Further discussions between the parties to execute a power purchase agreement along with the other supplementary agreements is expected to be completed soon, said both the companies in a statement.
Aluminium smelting requires reliable and continuous power. The project will be one of the world’s first for the aluminium sector with over 85 per cent reliability from the solar and wind power without dependence on grid electricity. Hindalco will also be the first aluminium company in India to use such round the clock carbon free power for smelting.
Greenko will also make available appropriate storage capacity from its hydro pump storage project in Pinnapuram, Andhra Pradesh to ensure continuous power supply.
Satish Pai, Managing Director, Hindalco said that, the agreement with Greenko is a significant step to reduce carbon footprint and cement the company’s status as the world’s most sustainable aluminium producer. “We are guided by our long-term commitment of becoming net carbon-neutral by 2050,” he said.
Anil Kumar Chalamalasetty, Managing Director, Greenko said, the RE project along with Greenko’s pumped storage project will ensure firm and predictable supply even at individual time block level without any banking support from the grid for Hindalco.
In March, the world’s largest steel producer, ArcelorMittal had tied up with Greenko Group to source 975 MW of round-the-clock green power to cut carbon emission at its joint venture, ArcelorMittal Nippon Steel India. The $600 million project, which will be supported by Greenko’s hydro pumped storage project, will be owned and funded by ArcelorMittal.