ArcelorMittal, Greenko Group partners for RE project worth 975 MW
ArcelorMittal has announced a renewable energy partnership with Greenko Group as part of its strategy to reduce carbon footprint by going green.
Under the partnership, ArcelorMittal will invest $600 million to own and fund a 975 megawatt (MW) renewable energy project in Andhra Pradesh.
The project will leverage Hydro Pumped Storage Plant (PSP) to provide continuous green energy to ArcelorMittal Nippon Steel India. The idea is to use cheap green power during off-peak hours to raise water to a height and then release it into a lower reservoir to generate power when there is more demand.
"ArcelorMittal's joint venture company in India, ArcelorMittal Nippon Steel India (AM/NS India), will enter into a 25-year off-take agreement with ArcelorMittal to purchase 250 MW of renewable electricity annually from the project. This will result in over 20 percent of the electricity requirement at AM/NS India's Hazira plant coming from renewable sources, reducing carbon emissions by approximately 1.5 million tonnes per year," according to a joint declaration.
"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," the statement added.
"Large amounts of green energy are one of the key foundations for both a net-zero economy and a decarbonized steel industry," said Aditya Mittal, chief executive officer, ArcelorMittal.