Hyundai Motor India Limited (HMIL) has signed an agreement with Fourth Partner Energy Limited (FPEL) to build two renewable energy facilities in Tamil Nadu, India.
The initiative forms part of HMIL’s aim of transitioning to using 100% renewable power across its operations by 2025, as part of the wider RE100 target. HMIL has already reached 63% of this target.
Led by the Climate Group, the RE100 initiative unites numerous large and ambitious companies worldwide, all striving to achieve 100% renewable electricity.
A 25-year power purchase agreement (PPA) and a shareholder deal have been signed by HMIL with FPEL.
As part of the agreement, HMIL will invest Rs380m ($4.50m) to help construct new energy sites. In this partnership, HMIL will own 26% of the project while FPEL will hold a 74% majority share.
Fourth Partner Energy co-founder and executive director Vivek Subramanian said: “We are proud to collaborate with HMIL in accelerating their journey towards 100% renewable energy.
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By GlobalData“This next phase of our partnership with Hyundai Motor India Limited is a testament to FPEL’s integrated capabilities and execution expertise across solar, wind and battery storage solutions.
“Through this agreement, we will be supplying HMIL with over 25 crore [0.25 billion] units of clean energy every year, which will help the company mitigate CO₂ emissions by 2 lakh [0.2 million] tons annually. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India’s renewable energy goals.”
The collaboration involves a 75MW solar site and a 43MW wind farm, both operating under a special purpose vehicle (SPV), which will be created to handle engineering, procurement, construction, and maintenance.
These projects are anticipated to generate over 250 million units of renewable electricity annually, contributing significantly to the reduction of carbon emissions by approximately 200,000tpa.
HMIL whole-time director and chief manufacturing officer Gopalakrishnan Chathapuram Sivaramakrishnan said: “This partnership marks a pivotal milestone in Hyundai Motor India Limited’s journey and reaffirms our commitment towards sustainability.
“Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025.”
