Hyundai Motor India Limited (HMIL) has made a major move towards its RE100 target by establishing two renewable energy plants in Tamil Nadu. The company signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) to strengthen its renewable energy portfolio. This strategic collaboration aims to help HMIL transition to 100% renewable electricity across its manufacturing operations by 2025. As of June 2024, HMIL meets 63% of its energy needs through renewable sources and plans to reach 100% ahead of many other automakers in India. RE100 is a global initiative led by the Climate Group, uniting companies committed to using 100% renewable electricity.
The agreements were signed by Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer at HMIL, and Mr. Karan Chadha, National Head of Business Development at Fourth Partner Energy Limited, at HMIL’s Chennai Manufacturing Plant in Tamil Nadu.
Commenting on HMIL’s RE100 goals, Mr. 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.”
As part of this partnership, HMIL will invest INR 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.
Mr. Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy highlighted the significance of this strategic partnership by emphasizing, “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.”
HMIL’s robust Energy Management System involves conserving energy and resources throughout its operations, incorporating low-carbon practices and reducing emission across the value chain. The company has further adopted large-scale innovative practices in energy management like 100% transition from conventional to LED lighting in the plant as early as 2017 and at all its offices and dealerships, thermo-ceramic coating on furnaces and ovens to reduce fuel consumption, steam elimination through waste heat recovery in paint shops, relocation of boilers to reduce transmission loss, installation of turbo chillers in paint shops, to name a few. HMIL has also installed a 10 MW rooftop solar plant at its manufacturing facility at Chennai. Since October 2022, the company has been strategically purchasing green power from Indian Energy Exchange (IEX) to increase its renewable energy portfolio.
This collaboration with FPEL underscores HMIL’s commitment to sustainability and renewable energy adoption as part of its broader efforts to achieve environmental stewardship and align with global benchmarks.
