ArcelorMittal and the Greenko Group have entered into a strategic partnership to construct a round-the-clock 975 MW nominal solar and wind project. The project entails an investment of $600 million. It is expected to be commissioned by mid-2024.
The project will be supported by Greenko’s hydro pumped storage project to overcome the intermittent nature of wind and solar power generation. It will be owned and funded by ArcelorMittal. Greenko is also responsible for designing, constructing and operating the renewable energy facilities, which will be based in Andhra Pradesh. ArcelorMittal Nippon Steel (AM/NS) India, ArcelorMittal’s joint venture in India, will sign a 25-year offtake agreement with ArcelorMittal to purchase 250 MW of renewable power from the project, annually. The transmission will be through Power Grid Corporation of India.
As per the company’s statement, the project will result in over 20 per cent of the electricity requirement at AM/NS India’s Hazira plant coming from renewable sources. This is expected to reduce carbon emissions by approximately 1.5 million tonnes per year. ArcelorMittal has set a target of 25 per cent global reduction in CO2 emissions intensity by 2030.