As part of its strategy to switch to 100% renewable electricity for all of its operations by 2025, Hyundai Motor India Limited (HMIL) plans to build two renewable energy projects in Tamil Nadu. At its Chennai manufacturing plant, the company and Fourth Partner Energy Limited (FPEL) have inked a Power Purchase and Shareholder Agreement. To meet HMIL’s renewable energy needs, this project includes the construction of a 75 MW solar power plant and a 43 MW wind power facility that will run in a group captive mode.
The RE100 standard, a global corporate renewable energy project by the Climate Group that unites companies dedicated to utilizing only renewable electricity, is what HMIL hopes to achieve. By June 2024, 63% of the company’s energy needs will be met by renewable sources. HMIL hopes to join other companies in implementing sustainable practices by hitting the RE100 objective.
Gopalakrishnan Chathapuram Sivaramakrishnan, HMIL’s full-time director and chief manufacturing officer, and Karan Chadha, FPEL’s national head of business development, inked the deal. Gopalakrishnan spoke at the event and emphasized the value of this partnership in achieving HMIL’s renewable energy targets and lowering its carbon footprint.
As per the agreement, FPEL would own 74% of the project’s equity, while HMIL will invest Rs 38 crores and keep a 26% interest. With an anticipated yearly decrease in CO2 emissions of 2 lakh tons, the renewable energy plants will provide more than 25 crore units of clean energy for 25 years.