Business News | Hyundai Motor India to Establish Two Renewable Energy Plants in Tamil Nadu, Targets 100 Per Cent Renewable Energy by 2025
Get latest articles and stories on Business at LatestLY. To advance this mission, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) at its Chennai manufacturing plant.
Chennai (Tamil Nadu) [India], November 21 (ANI): Hyundai Motor India Limited (HMIL) has announced a major initiative to bolster its renewable energy portfolio by setting up two renewable energy plants in Tamil Nadu.
According to Hyundai, this development aligns with the company's ambitious target of achieving the RE100 benchmark by 2025. The RE100 initiative, led by the Climate Group, unites global corporations committed to transitioning to 100 per cent renewable electricity.
To advance this mission, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) at its Chennai manufacturing plant.
Under the agreement, a 75 MW solar plant and a 43 MW wind power plant will be established to fulfill HMIL's energy requirements through a Group Captive Mode.
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The initiative involves an investment of Rs 38 crore, with the project structured as a Special Purpose Vehicle (SPV) where HMIL will hold a 26 per cent equity stake and FPEL the remaining 74 per cent.
The agreement ensures a 25-year supply of renewable energy, propelling HMIL closer to its goal of 100 per cent renewable electricity by 2025.
Currently, HMIL meets 63 per cent of its energy needs through renewable sources and plans to lead the Indian automotive sector in achieving total renewable energy adoption.
Commenting on this milestone, Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer of HMIL, said, "This partnership marks a pivotal milestone in Hyundai Motor India Limited's journey and reaffirms our commitment towards sustainability. Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025.
He added, "By harnessing the potential of wind and solar power, we are not only reducing our carbon footprint, but also living true to our global vision of 'Progress for Humanity'. We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future."
Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy, said, "Through this agreement, we will be supplying HMIL with over 25 crore units of clean energy every year, which will help the company mitigate CO2 emissions by 2 lakh tons annually. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India's renewable energy goals."
In addition to this collaboration, HMIL has been a frontrunner in implementing innovative energy management solutions.
The company operates a 10 MW rooftop solar plant at its Chennai facility and has transitioned all its manufacturing units, offices, and dealerships to 100 per cent LED lighting since 2017.
Other initiatives include installing waste heat recovery systems, energy-efficient equipment, and strategic procurement of green power from the Indian Energy Exchange (IEX). (ANI)
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