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DCM Shriram has agreed to source 50 MW of renewable energy from ReNew Power for its chlor-alkali manufacturing facility in Bharuch, Gujarat.
DCM Shriram, which is in the chemicals, sugar and fertilisers business and ReNew Power announced the signing of two captive power agreements (CPAs).
The agreements will see 50 MW of renewable energy supplied from ReNew’s two upcoming projects in Bhavnagar, Gujarat, to DCM Shriram’s Chlor-Alkali manufacturing facility in Bharuch district, according to a regulatory filing.
DCM Shriram Chairman and Senior Managing Director Ajay S Shriram said “We as a group are committed to improving our energy footprint and this is a step in that direction”.
“With a long-term commitment towards ESG (environmental, social and corporate governance), the captive power agreements for green energy have been signed for 25 years and will mitigate around 2,25,000 tCO2e (carbon emissions) annually,” he added.
The 50-MW hybrid project, which has around 100 MW of wind and solar generation capacity at its backend, is expected to generate around 250 million units of renewable energy every year exclusively for the DCM Shriram’s Bharuch facility.
ReNew will be setting up the two hybrid projects with a total investment of around Rs 800 crore through an equity partnership of around Rs 63 crore by DCM Shriram Ltd.