ArcelorMittal, has entered into a strategic partnership with the Greenko Group for a project that will give a push to the decarbonization journey of ArcelorMittal Nippon Steel India (AM/NS India).
The two companies will work together to construct a round-the-clock 975 MW of nominal solar and wind capacity project.
The $600 million project, which will be supported by Greenko’s hydro pumped storage project, will be owned and funded by ArcelorMittal.
Greenko will design, construct and operate the renewable energy facilities in Andhra Pradesh. AM/NS India will sign a 25-year offtake agreement with ArcelorMittal to purchase 250 MW of renewable power annually from the project.
The project commissioning is expected by mid-2024 and the transmission will be through Power Grid Corporation of India (PGCIL).
The move will result in over 20 percent of the electricity requirement at AM/NS India’s Hazira plant coming from renewable sources, reducing carbon emissions by approximately 1.5 million tpa.
ArcelorMittal has a 60 percent equity interest in AM/NS India. In 2019, it had acquired Essar Steel jointly with Nippon Steel under the insolvency law and the joint venture was named AM/NS India.
AM/NS India is looking to debottleneck operations to 8.8 million tonne capacity by 2023. Further, there are plans to expand capacity at Hazira to at least 14.4 million tonne and a greenfield expansion in Odisha.
