Hyundai Motor India Limited (HMIL) is taking a step toward sustainability by setting up two renewable energy plants in Tamil Nadu. The company has signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) to further enhance its renewable energy portfolio and transition to 100 percent renewable electricity across its manufacturing operations by 2025.
Currently, HMIL sources 63 percent of its energy needs from renewable sources, aiming to reach the 100 percent target ahead of most automakers in the country. This ambitious goal is in line with RE100, a global initiative by the Climate Group that brings together companies committed to using 100 percent renewable electricity.
The agreements were signed at HMIL’s Chennai manufacturing plant by Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer of HMIL, and Karan Chadha, National Head of Business Development at Fourth Partner Energy Limited. This collaboration marks a pivotal milestone in Hyundai’s ongoing efforts to reduce its carbon footprint and promote renewable energy use.
“We are committed to achieving the RE100 benchmark by 2025, and this partnership with FPEL will help us realize that goal,” said Sivaramakrishnan. “By harnessing the power of wind and solar energy, we are not only reducing our carbon footprint but also staying true to our global vision of ‘Progress for Humanity’. We hope this collaboration will inspire other industries to embrace renewable energy.”
As part of the partnership, HMIL will invest Rs 38 crore in setting up 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 a 26 percent equity stake, while FPEL will own 74 percent.
The 25-year agreement ensures a long-term supply of renewable energy to HMIL, with the plants expected to generate over 25 crore units of clean energy annually. This will help reduce CO2 emissions by 2 lakh tons per year, further supporting India’s renewable energy goals.
Vivek Subramanian, Co-Founder & Executive Director at FPEL, highlighted the significance of this strategic collaboration. “We are proud to partner with HMIL in their transition to 100 percent renewable energy. This partnership demonstrates FPEL’s capabilities in solar, wind, and battery storage solutions, as well as the vital role corporations play in driving sustainability,” Subramanian said.
