ArcelorMittal, Greenko partner on a renewables-plus-storage project

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UK-headquartered ArcelorMittal, a leading steel and mining company, has partnered with Indian developer Greenko Group on a ‘round-the-clock’ renewable energy project that will supply green power to the Hazira plant of its joint venture ArcelorMittal Nippon Steel India.

The $600 million project will have 975MW of wind and solar capacity, supported by Greenko’s hydro pumped storage project to overcome the intermittent nature of wind and solar power generation.

The project will be owned and funded by ArcelorMittal. Greenko will design, construct and operate the renewable energy facilities in Andhra Pradesh, Southern India. The project commissioning is expected by mid-2024.

ArcelorMittal’s joint venture company in India, ArcelorMittal Nippon Steel India (AM/NS India), will purchase 250MW of renewable electricity annually from the project under a 25-year off-take agreement with ArcelorMittal. This will help its Hazira plant meet at least 20% of its electricity requirement through renewable sources, reducing carbon emissions by approximately 1.5 million tonnes per year.

Aditya Mittal, CEO, ArcelorMittal, said: “This is an attractive opportunity for ArcelorMittal. We will be partnering with a highly experienced energy transition company in a project that will enable our joint venture company AM/NS India to reduce both its electricity costs and carbon emissions, as well as providing consistent, guaranteed returns for ArcelorMittal.

“Large amounts of green energy are one of the key foundations for both a net-zero economy and a decarbonized steel industry. We are excited about the potential of replicating this model in other regions. It demonstrates how establishing partnerships and collaborating across the supply chain can help us progress faster towards our decarbonization targets.”

Anil Kumar Chalamalasetty, chief executive officer and managing director at Greenko, said their partnership with the world’s leading steelmaker would serve as a blueprint for adopting renewable power for large-scale steel manufacturing in India. “These efforts will also represent a notable contribution to India’s own commitment to build 500 GW of renewable energy capacity by 2030,” he added.

  

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