Hindalco inks pact with Greenko Group to co-produce round-the-clock carbon-free energy for its Odisha smelter

11 Aug 2022 , 03:16 PM

Hindalco Industries Limited, Aditya Birla Group’s metals flagship, and Greenko Energies Private Limited, India’s leading energy transition company, have entered into a commercial arrangement to set up a renewable energy (RE) project for supply of 100MW round-the-clock carbon free power. 

As per the filing, this arrangement covers the development of 375-400 MW of solar and wind capacity. The RE project will be set up as a captive generation facility under a 25-year offtake arrangement and will supply power to Hindalco’s Aditya Aluminium smelter located in Odisha, enabling reduction of CO2 emissions by 680,000 tonnes per year.

Further discussions between the parties to execute a power purchase agreement along with the other supplementary agreements is expected to be completed soon, the company said.

The project will be one of the world’s first for the aluminium sector with very high (+85%) reliability from solar and wind power without dependence on grid electricity. Hindalco will also be the first aluminium company in India to use such RTC (round the clock) carbon free power for smelting.

Greenko will design and construct, partly own and operate the solar and wind facilities. It will also make available appropriate storage capacity from its hydro pump storage project in Pinnapuram, Andhra Pradesh to ensure continuous power supply.

At around 3:18 PM, Hindalco Industries was trading at Rs433.60 per share down by Rs6.45 or 1.47% from its previous closing of Rs440.05 per share on the BSE.