NEW DELHI: Global steel and mining firm ArcelorMittal on Tuesday announced its strategic partnership with Greenko Group for developing a round-the-clock renewable energy project with 975 MW of nominal capacity.
"ArcelorMittal today announces it has established a strategic partnership with Greenko Group, India's leading energy transition company, to develop a 'round the clock' renewable energy project with 975 MW of nominal capacity," a company statement said.
According to the statement, the project worth USD 600 million will combine solar and wind power and be supported by Greenko's hydro pumped storage project which helps to overcome the challenges due to intermittent nature of wind and solar power generation.
The project will be owned and funded by ArcelorMittal. Greenko will design, construct and operate the renewable energy facilities in Andhra Pradesh. Project commissioning is expected by mid-2024.
The 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 per cent 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.
The project offers AM/NS India the dual benefits of lower electricity costs and lower CO2 emissions, and it also provides an attractive return on investment for ArcelorMittal.
Aditya Mittal, CEO, ArcelorMittal, said in the statement, "This is an attractive opportunity for ArcelorMittal.
We will be partnering with a highly experienced energy transition company in a project that will enable our joint venture company AM/NS India to reduce both its electricity costs and carbon emissions, as well as providing consistent, guaranteed returns for ArcelorMittal.
"ArcelorMittal is the world's leading steel and mining company having presence in 60 countries and primary steelmaking facilities in 16 countries.
In 2021, ArcelorMittal had revenues of USD 76.6 billion and crude steel production of 69.1 million metric tonnes, while iron ore production reached 50.9 million metric tonnes.