ArcelorMittal & Greenko partner to set up $600Mn renewable energy project

ArcelorMittal, the second largest steel manufacturer in the world, has reportedly agreed to a strategic collaboration with Greenko Group, India’s leading renewable energy firm for a project which will support the decarbonization pathway for ArcelorMittal Nippon Steel India (AM/NS India).

As per credible sources, the two conglomerates will function together to build round the clock 975 Mw of wind and solar capacity project. The $600 million project will be backed by Greenko’s hydro pumped storage project and would be funded and owned by ArcelorMittal.

Apparently, Greenko will construct, design, and operate the renewable energy facilities in the South Indian state Andhra Pradesh.

AM/NS India, joint venture of ArcelorMittal in India, will draft a 25-year long offtake agreement with ArcelorMittal to buy 250 Mw of renewable power per year from the project.

Sources suggest that the commissioning is expected by the mid of 2024 and the transmission will be via Power Grid Corporation of India.

As per reports, this will lead to almost 20 per cent of the electricity needs at India’s Hazira AM/NS plant coming from renewable sources, bringing down the carbon emissions by almost 1.5 million tons every year.

The project will allegedly offer AM/NS India with the benefit of low CO2 emissions and less electricity costs along with an attractive investment returns for ArcelorMittal.

ArcelorMittal apparently has a 60 per cent equity interest in AM/NS India and in 2019, in a joint acquisition with Nippon Steel it gained Essar Steel under the insolvency law, naming the joint venture as AM/NS India.

Commenting on the collaboration with Greenko, Aditya Mittal, Chief Executive Officer at ArcelorMittal claims that this an eventful opportunity as partnering with a highly experienced energy transition firm in a project will allow their joint venture AM/NS India to cut down its carbon emissions and electricity costs.

Meanwhile, it will also offer guaranteed and consistent returns for ArcelorMittal.  

 Source Credit:- https://www.business-standard.com/article/companies/arcelormittal-greenko-to-set-up-600-mn-renewable-energy-project-122032200937_1.html