Hyundai Motor India to Build 2 Renewable Energy Plants in Tamil Nadu

On November 21, 2024, Hyundai Motor India Limited (HMIL) made a major move towards its RE100 goal by setting up two renewable energy plants in Tamil Nadu. HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) to boost its renewable energy efforts. 

The goal is to switch to 100% renewable electricity in its manufacturing operations by 2025. As of June 2024, HMIL meets 63% of its energy needs through renewable sources and aims to lead other automakers in India by reaching the 100% target early. RE100 is a global initiative bringing together businesses committed to using only renewable electricity. The agreement was signed by Mr. Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer at HMIL, and Mr. Karan Chadha, National Head of Business Development at FPEL, at HMIL’s Chennai plant.

Commenting on HMIL’s RE100 goals, Mr Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer, HMIL said, “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.” 

HMIL’s Investment in Renewable Energy Plants

As part of its partnership with Fourth Partner Energy Limited (FPEL), Hyundai Motor India Limited (HMIL) will invest ₹38 crore to set up renewable energy plants in Tamil Nadu. The plants will operate under a Group Captive Mode, with a Special Purpose Vehicle (SPV) responsible for Engineering, Procurement, Construction, Operations, and Maintenance. HMIL will hold a 26% stake, while FPEL will own 74%. The long-term agreement ensures HMIL’s 25-year supply of renewable energy.

HMIL’s Energy Management Practices

HMIL’s Energy Management System conserves energy and resources throughout its operations. The company has implemented several energy-saving practices, including switching to 100% LED lighting at its plants, offices, and dealerships since 2017. Other energy-saving measures include thermo-ceramic coating on furnaces, steam elimination through waste heat recovery, and relocating boilers to reduce transmission loss. Additionally, HMIL has installed turbo chillers in its paint shops to improve energy efficiency.

HMIL has also installed a 10 MW rooftop solar plant at its Chennai manufacturing facility. Since October 2022, the company has purchased green power from the Indian Energy Exchange (IEX) to boost its renewable energy portfolio further.

This collaboration with FPEL highlights HMIL’s commitment to sustainability and renewable energy. It is part of the company’s broader efforts to minimise its environmental impact and meet global sustainability standards.

On November 22, 2024, Hyundai Motor share price opened at ₹2,16,000, touching the day’s high at ₹2,18,500, reflecting a rise of 0.46% as of 11:33 AM on NSE. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.