Hyundai Motor India partners with Fourth Partner Energy to achieve 100% renewable energy by 2025
What does it indicate?
The agreement, signed by representatives from both companies, outlines HMIL's investment of INR 38 crore s to establish these renewable energy plants within Tamil Nadu. Functioning as a Group Captive Mode, these facilities will operate under a Special Purpose Vehicle (SPV) responsible for Engineering, Procurement, Construction, Operations, and Maintenance. Within this SPV structure, HMIL will hold a 26% equity stake, while FPEL will hold the remaining 74%. This long-term agreement guarantees a 25-year supply of renewable energy to HMIL.
Currently, HMIL meets 63% of its energy needs from renewable sources (as of June 2024) and aims to achieve the 100% milestone ahead of other automakers in the country. This initiative emphasises HMIL's commitment to sustainability and its goal of transitioning to 100% renewable electricity across its manufacturing operations by 2025.
“This partnership marks a pivotal milestone in Hyundai Motor India Limited’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’. We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future,” stated Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer at HMIL.
HMIL robust Energy Management System
HMIL has implemented a robust Energy Management System that prioritises energy conservation and resource optimization throughout its operations. This system incorporates low-carbon practices and aims to reduce emissions across the entire value chain. The company has embraced large-scale innovative practices in energy management, such as transitioning entirely from conventional lighting to LED lighting in its plant back in 2017. This transition extends to all HMIL offices and dealerships.
Other energy-saving measures include applying thermo-ceramic coating on furnaces and ovens to lower fuel consumption, implementing steam elimination through waste heat recovery in paint shops, relocating boilers strategically to reduce transmission loss, and installing turbo chillers in paint shops, among other initiatives.
“We are proud to collaborate with HMIL in accelerating their journey towards 100% renewable energy. This next phase of our partnership with Hyundai Motor India Limited 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. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India’s renewable energy goals,” said Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy, emphasises the partnership's role in promoting responsible energy consumption and supporting India's renewable energy targets.
Furthermore, HMIL has installed a substantial 10 MW rooftop solar power plant at its Chennai manufacturing facility. Since October 2022, the company has been proactively procuring green power from the Indian Energy Exchange (IEX) to bolster its renewable energy portfolio.
