This long-term agreement will ensure a 25-year supply of renewable energy to HMIL, the company said.
Hyundai Motor India Ltd (HMIL) on Thursday said it will set up two renewable energy plants at its vehicle manufacturing unit in Tamil Nadu as part of the company's move to transition to 100 per cent renewable electricity across manufacturing operations by 2025.
The company has signed a power purchase and shareholder agreement with Fourth Partner Energy Ltd (FPEL) for the purpose of setting up of a 75 MW solar plant and a 43 MW wind power plant to cater to its renewable energy requirements, Hyundai Motor India Ltd (HMIL) said in a statement.
These facilities will operate under a group captive mode with a special purpose vehicle (SPV) formed for engineering, procurement, construction, operations and maintenance. HMIL will hold 26 per cent and FPEL will hold 74 per cent equity stake in the project, it added.
This long-term agreement will ensure a 25-year supply of renewable energy to HMIL, the company said.
"As part of this partnership, HMIL will invest Rs 38 crore towards setting up these renewable energy plants in Tamil Nadu," the company said.
HMIL Whole-time Director & Chief Manufacturing Officer Gopalakrishnan Chathapuram Sivaramakrishnan said, "This partnership marks a pivotal milestone in Hyundai Motor India Ltd's journey and reaffirms our commitment towards sustainability. Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025."
RE100 is a global corporate renewable energy initiative by the Climate Group, bringing together hundreds of large and ambitious businesses committed to 100 per cent renewable electricity.
HMIL said its move is aimed to enhance its renewable energy portfolio and transition to 100 per cent renewable electricity across its manufacturing operations by 2025. The company fulfils 63 per cent of its energy requirements using renewable sources as of June 2024, and aims to reach the 100 per cent mark ahead of most automakers in the country.
Fourth Partner Energy Co-Founder & Executive Director Vivek Subramanian 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 tonnes annually."