Hyundai inks pact with FPEL, to set up 2 RE plants in TN, invest Rs 38 cr
In this regard, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL), at its manufacturing facility near here on Thursday.
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CHENNAI: Passenger car makers Hyundai Motor India Limited (HMIL) will set up two Renewable energy plants in Tamil Nadu with an investment of Rs 38 crores to achieve its RE100 target.
In this regard, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL), at its manufacturing facility near here on Thursday.
This strategic partnership aims to enhance HMIL's renewable energy portfolio and transition to 100% renewable electricity across its manufacturing operations by 2025.
HMIL currently fulfils 63% of its energy requirements using renewable sources (as on June 2024), and aims to reach the 100% mark ahead of most automakers in the country.
RE100 is a global corporate renewable energy initiative by the Climate Group, bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity, a Hyundai release said.
The agreements were signed by Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director and Chief Manufacturing Officer, HMIL, and Mr. Karan Chadha, National Head, Business Development FPEL, at HMIL's Chennai manufacturing plant.
As part of this partnership, HMIL will invest Rs 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.
Commenting on HMIL's RE100 goals, Mr. Gopalakrishnan Chathapuram Sivaramakrishnan said, "This partnership marks a pivotal milestone in Hyundai'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'", he said.
"We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future", he added.
Mr. Vivek Subramanian 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 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", he said.
"Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India's renewable energy goals", he added.