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Hyundai Motor India currently fulfils 63 per cent of its energy requirements using renewable sources (as on June 2024), and aims to reach the 100 per cent mark ahead of most automakers in the country.
Hyundai Motor India currently fulfils 63 per cent of its energy requirements using renewable sources (as on June 2024).
Hyundai Motor India Limited (HMIL) on Thursday said it has taken a significant step towards achieving its RE100 target by setting up two renewable energy plants in Tamil Nadu. The carmaker signed a power purchase and shareholder agreement with Fourth Partner Energy Limited (FPEL).
As part of this partnership, HMIL will invest Rs 38 crore towards setting up these renewable energy plants in Tamil Nadu.
This strategic partnership aims to enhance HMIL’s renewable energy portfolio and transition to 100 per cent renewable electricity across its manufacturing operations by 2025.
“HMIL currently fulfils 63 per cent of its energy requirements using renewable sources (as on June 2024), and aims to reach the 100 per cent 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 per cent renewable electricity,” HMIL said in a statement.
The agreements were signed by Gopalakrishnan Chathapuram Sivaramakrishnan, whole-time director and chief manufacturing officer of HMIL, and Karan Chadha, national head (business development) of Fourth Partner Energy Limited (FPEL), at HMIL’s Chennai manufacturing plant in Tamil Nadu.
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. By harnessing the potential of wind and solar power, we are not only reducing our carbon footprint but also living true to our global vision of ‘Progress for Humanity’. We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future.”
As part of this partnership, HMIL will invest Rs 38 crore 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 per cent and FPEL will hold 74 per cent equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL, it said.
Vivek Subramanian, co-founder & executive director at Fourth Partner Energy, said, “We are proud to collaborate with HMIL in accelerating their journey towards 100 per cent renewable energy. This next phase of our partnership with Hyundai Motor India Limited is testament to FPEL’s integrated capabilities and execution expertise across solar, wind and battery storage solutions. It also demonstrates the vital role corporates play in building and ensuring a sustainable future.”
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. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India’s renewable energy goals, he said.
