Hyundai Motor India Limited (HMIL) has taken a significant step towards achieving its RE100 target by setting up 2 renewable energy plants in Tamil Nadu. HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL). This strategic partnership aims to enhance HMIL’s renewable energy portfolio and transition to 100% renewable electricity across its manufacturing operations by 2025. HMIL currently fulfils 63% of its energy requirements using renewable sources (as on June 2024), and aims to reach the 100% mark ahead of most automakers in the country. RE100 is a global corporate renewable energy initiative by the Climate Group, bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.
The agreements were signed by Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer, HMIL, and Mr. Karan Chadha, National Head, Business Development – Fourth Partner Energy Limited (FPEL), at HMIL’s Chennai Manufacturing Plant in Tamil Nadu.
As part of this partnership, HMIL will invest INR 38 Crores towards setting up these renewable energy plants in Tamil Nadu. 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% and FPEL will hold 74% equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL.
HMIL’s robust Energy Management System involves conserving energy and resources throughout its operations, incorporating low-carbon practices and reducing emission across the value chain. The company has further adopted large-scale innovative practices in energy management like 100% transition from conventional to LED lighting in the plant as early as 2017 and at all its offices and dealerships, thermo-ceramic coating on furnaces and ovens to reduce fuel consumption, steam elimination through waste heat recovery in paint shops, relocation of boilers to reduce transmission loss, installation of turbo chillers in paint shops, to name a few. HMIL has also installed a 10 MW rooftop solar plant at its manufacturing facility at Chennai. Since October 2022, the company has been strategically purchasing green power from Indian Energy Exchange (IEX) to increase its renewable energy portfolio.
This collaboration with FPEL underscores HMIL’s commitment to sustainability and renewable energy adoption as part of its broader efforts to achieve environmental stewardship and align with global benchmarks.
