Linde approves INR 287 million Capex in renewable energy for self-consumption

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Industrial gas producer Linde India has announced its Board of Directors has approved an aggregate INR 287 million of capital expenditure investment to source renewable power (solar and wind) for self-consumption. The investment will help it replace high-tariff grid power with lower-cost and “green” solar power on a long-term basis.

Linde will use the renewable power generated from Captive mode RE plants for its merchant air separation units at Taloja (Maharashtra) and Dahej (Gujarat) and the under-construction air separation plant in Sri City (Andhra Pradesh).

The company will enter into joint venture agreements with the identified solar power generating companies and form special-purpose vehicles (SPVs) to qualify as a captive consumer of the power.

It shall acquire up to 26% equity in the joint-venture SPVs with solar/wind power generators for the supply of renewable power to the merchant air separation units.

“On the formation of the SPVs, the company will be signing the power purchase agreements and share subscription and shareholder agreements with them, after which, the Company will acquire the equity in the SPVs as per the approval of the Board as aforesaid,” stated the company.

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