Hyundai Motor India (HMIL) is setting up 2 renewable energy plants in Tamil Nadu to enhance its 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 of 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.
HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL).
The agreements were signed by Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer, HMIL, and 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 ₹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 a 74% equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL.
Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer, HMIL 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. 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.”
Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy said, “We are proud to collaborate with HMIL in accelerating their journey towards 100% 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 tons annually. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India’s renewable energy goals.”
