Hyundai Motor targets 100% renewable energy by 2025, to set up two TN units

The company signed a power purchase and shareholder agreement with Fourth Partner Energy Ltd to boost its renewable energy component from the current 63 per cent of total need

Hyundai Motor India Ltd (HMIL) on Thursday said it was planning to set up two renewable energy plants in Tamil Nadu as a step towards meeting the company’s target of 100 per cent renewable electricity dependency across its manufacturing operations by 2025.

 

HMIL signed a ‘Power Purchase and Shareholder Agreement’ with Hyderabad-based Fourth Partner Energy Ltd (FPEL) under which the automobile giant will invest Rs 38 crore towards setting up these renewable energy plants.

 

At present, Hyundai India is meeting 63 per cent of its energy needs through renewable sources (as on June 2024). The firm aims to reach the 100 per cent mark, ahead of most automakers in the country.

 

 

Gopalakrishnan Chathapuram Sivaramakrishnan, whole-time director and 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.”

 

These two 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 per cent and FPEL will hold 74 per cent equity stake in the project. This long-term agreement will ensure a 25-year supply of renewable energy to HMIL.

 

“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,” Sivaramakrishnan added.

 

RE100 is a global corporate renewable energy initiative by the Climate Group, bringing together hundreds of large and ambitious businesses committed to 100 per cent renewable electricity.

 

“Through this agreement, we will be supplying HMIL with over 250 million 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,” said Vivek Subramanian, Co-Founder and Executive Director at Fourth Partner Energy.