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Renewable energy company Greenko Group and aluminium maker Hindalco Industries have entered into an agreement to set up a green energy project that will have a capacity of 375 MW – 400 MW in Odisha.
The project, which will have wind and solar capacity, will supply power to Hindalco’s aluminium smelter in Odisha, Greenko said in a statement on Thursday.
“Hindalco Industries Limited and Greenko Energies Private Limited have entered into a commercial arrangement to set up a renewable energy (RE) project for supply of 100 MW round-the-clock carbon free power. The arrangement covers the development of 375-400 MW of solar and wind capacity,” it said.
As part of the agreement, Greenko said it will design, construct, partly own and operate the solar and wind facilities. The company will also make available appropriate storage capacity from its hydro pump storage project in Pinnapuram, Andhra Pradesh to ensure continuous power supply.
The project will be set up as a captive generation facility under a 25-year offtake arrangement to supply power to Hindalco’s Aditya aluminium smelter in Odisha, enabling reduction of CO2 emissions by 6,80,000 tonnes annually, Greenko said without sharing any financial details of the deal.
According to Greenko, aluminium smelting requires reliable and continuous power. Hindalco will also be the first aluminium company in India to use such round the clock carbon free power for smelting.
Hindalco Managing Director Satish Pai said the agreement with Greenko is a significant step towards reducing our carbon footprint. “We are guided by our long-term commitment of becoming net carbon-neutral by 2050.”
Greenko’s CEO and Managing Director Anil Kumar Chalamalasetty said that the company firmly believes clean energy sources backed with competitive and proven storage technologies like hydro pump storage projects offer a competitive, reliable and sustainable alternative to consumers to support their decarbonisation journey.
Hindalco Industries, a part of Aditya Birla Group, is the world’s largest aluminium company by revenues.