Hyundai inks pact with Fourth Partner Energy to set up renewable energy projects in Tamil Nadu – EQ
In Short : Hyundai Motor India has partnered with Fourth Partner Energy to develop two renewable energy plants in Tamil Nadu, including a 75 MW solar and 43 MW wind power facility. This Rs. 38 crore investment supports Hyundai’s goal of 100% renewable electricity by 2025 under the RE100 initiative. The project aims to generate 25 crore units of clean energy annually, reducing CO2 emissions by 2 lakh tons.
In Detail : Hyundai Motor India has signed a power purchase and shareholder agreement with Fourth Partner Energy Ltd (FPEL) to establish two renewable energy plants in Tamil Nadu.
As part of the partnership, FPEL will establish a solar power plant with a 75 MW capacity and wind power unit with a capacity of 42.9 MW in the State under the Group Captive Model with a special purpose vehicle (SPV). HMIL will invest ₹38 crore in the SPV. “Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025,” said Gopalakrishnan CS, Whole-time Director & Chief Manufacturing Officer, HMIL.
HMIL will hold 26 per cent and FPEL will hold a 74 per cent equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL and the project is also part of the company’s plans to transition to 100 per cent renewable electricity across its manufacturing operations by 2025. The company meets 63 per cent of its energy requirements using renewable sources (as of June 2024).
“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, said Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy.
HMIL has also installed a 10 MW rooftop solar plant at its Chennai manufacturing facility. Since October 2022, the company has been purchasing green power from the Indian Energy Exchange (IEX) to increase its renewable energy portfolio.
