Passenger car makers Hyundai Motor India Limited (HMIL) will set up two Renewable energy plants in Tamil Nadu with an investment of Rs 38 crores to achieve its RE100 target.
In this regard, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL), at its manufacturing facility near here on Thursday.
This strategic partnership aims to enhance HMIL’s 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 on 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, a Hyundai release said.
The agreements were signed by Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director and Chief Manufacturing Officer, HMIL, and Mr. Karan Chadha, National Head, Business Development FPEL, at HMIL’s Chennai manufacturing plant.
As part of this partnership, HMIL will invest Rs 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 74% equity stake in the project.
This long-term agreement will ensure a 25-year supply of renewable energy to HMIL.
Commenting on HMIL’s RE100 goals, Mr. Gopalakrishnan Chathapuram Sivaramakrishnan said, “This partnership marks a pivotal milestone in Hyundai’s journey and reaffirms our commitment towards sustainability. Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025”.