ArcelorMittal announced its strategic partnership with Greenko Group to develop a 975 MW of nominal solar and wind capacity renewable energy projects in India.
The $0.6 billion projects will include solar and wind power capacity, backed by Greenko’s hydro pumped storage project, to overcome the intermittent nature of wind and solar power generation. The renewable energy project is expected to be commissioned by mid-2024. ArcelorMittal will own and fund the renewable energy project. Greenko will be responsible for designing, constructing and operating the renewable energy facilities in Andhra Pradesh. ArcelorMittal’s joint venture (JV) firm in India, ArcelorMittal Nippon Steel India (AM/NS India), will enter into a 25 years off-take agreement with ArcelorMittal to purchase 250 MW of renewable electricity per year from the project. It will result in over 20% of the electricity requirement at the company's Hazira plant in India coming from renewable sources, reducing carbon emissions by around 1.5 million tonnes (mt) per year. The project offers AM/NS India the dual benefits of lowering electricity costs and reducing carbon dioxide emissions. It will also provide an attractive return on investment for ArcelorMittal. CEO and Managing Director of Greenko, Anil Kumar Chalamalasetty, told the media that it is a pioneering partnership with the leading steelmaker in the world and aims to serve as a blueprint for the adoption of renewable power for large-scale steel manufacturing plants in India. The project also contributes to India’s commitment to 500 GW of renewable energy capacity installations by 2030. Image Source
