- Under a strategic arrangement, Greenko will set up a 975 MW solar and wind power project for ArcelorMittal
- The $600 million Andhra Pradesh located facility will be supported by Greenko’s 250 MW hydro pumped storage project
- Power generated by 250 MW of this hybrid project will be contracted by ArcelorMittal’s India JV AM/NS India for 25 years
- While Greenko will design, construct and operate the facility, ArcelorMittal will own and fund it
Global steel manufacturing giant ArcelorMittal has partnered with Indian renewable energy company Greenko for 975 MW wind, solar capacity. Greenko’s 250 MW hydro pumped storage project will supply power to ArcelorMittal’s Hazira steel plant.
While ArcelorMittal will own and fund the $600 million project, Greenko will design, construct and operate it in Andhra Pradesh. It is scheduled to come online in mid-2024 and will start supplying round-the-clock (RTC) power to the steel maker’s Indian joint venture (JV), ArcelorMittal Nippon Steel India (AM/NS India) for 25 years.
The power purchase agreement (PPA) will be signed between ArcelorMittal and AM/NS India for 250 MW renewable electricity supply annually from the project. With this, AM/NS India expects to use renewable energy to meet 20% of its electricity requirements and lower carbon emissions by around 1.5 million tons annually.
ArcelorMittal CEO Aditya Mittal said the arrangement will also provide ‘consistent, guaranteed returns’ for the group.
“Large amounts of green energy are one of the key foundations for both a net zero economy and a decarbonized steel industry,” added Mittal. “We are excited about the potential of replicating this model in other regions. It demonstrates how establishing partnerships and collaborating across the supply chain can help us to progress faster towards our decarbonization targets.”
ArcelorMittal is also part of the HyDeal España JV with Grupo Fertiberia, Enagas and DH2 Energy under HyDeal Ambition. ArcelorMittal and Grupo Fertiberia along with other procurers will use 6.6 million tons of green hydrogen to be produced by the project for over 20 years to produce green steel among others (see 9.5 GW Solar For Green Hydrogen In Spain).