Vedanta Aluminium announces long-term sourcing of 380 MW renewable power2nd May 2022
- Power delivery agreement for 380 MW Renewable Energy supply to Aluminium Smelters in Jharsuguda (Odisha) and BALCO (Korba, Chhattisgarh)
- Potential GHG emissions reduction of ~ 15,00,000 TCo2e per annum.
New Delhi, 2nd May, 2022: Vedanta Aluminium, India’s largest producer of aluminium, has announced long-term sourcing of 380 MW of renewable energy for its Aluminium Smelters. 180 MW of this RE will be for the Aluminium Smelter at Jharsuguda, in Odisha, and 200 MW for the Bharat Aluminium Company (BALCO) at Korba, in Chhattisgarh. This will be carried out through a Power Delivery Agreement (PDA) between Vedanta Limited (Aluminium Business) and Special Purpose Vehicles – affiliates of Sterlite Power Technologies Pvt Ltd (SPTPL), a company engaged in the business of supplying renewable power (hybrid) with solar, wind and storage solutions. Once online, this project has the potential to reduce Vedanta Aluminium’s GHG (greenhouse gas) emissions by ~ 15,00,000 tonnes of CO2 equivalent annually.
Charting its roadmap to Net Zero by 2050, Vedanta Aluminium is working on a three pronged-approach to decarbonize its operations – increasing the quantum of renewable energy in its energy mix, bolstering operational efficiencies to reduce energy consumption, and rapidly transitioning to cleaner fuels and technologies. Notably, the company was India’s largest industrial consumer of renewable energy in FY22, having procured nearly 3 Billion Units which was utilized in the production of Vedanta’s low carbon ‘green’ aluminium brand – ‘Restora’.
It is a strategic imperative for the company to reduce carbon emissions across every process stage. As a result of this unwavering focus, Vedanta Aluminium has reduced its GHG emissions intensity by 21% in FY21 while almost tripling its production, over FY12 baseline. The company is also a member of the prestigious Dow Jones Sustainability Index (DJSI) family and ranked 4th amongst global aluminium producers in 2021.
Mr. Rahul Sharma, CEO – Aluminium Business, Vedanta Ltd., said, “This 380 MW renewable energy power delivery agreement for our aluminium smelters stands true to our mission of aligning the incentives of growth with the imperatives for the planet. Our determination to build a Net Zero climate-resilient aluminium business is equally matched by our commitment to improve the quality of lives of those around us, with the knowledge that both are contingent on the environment. And therefore, we have redesigned our ESG (Environmental, Social & Governance) roadmap until 2030, with a focus on increasing renewable energy consumption, carbon reduction, water conservation and waste utilization.”
The term of the power delivery agreement is 25 years from the date of commissioning of the project. Built in a captive model, this will also aid in cost-effective sourcing of renewable energy and insulate the company from volatility in the commodities market.
Vedanta Aluminium, a business of Vedanta Limited, is India’s largest producer of aluminium, manufacturing more than half of India’s aluminium i.e., 2.26 million tonnes in FY22. It is a leader in value-added aluminium products that find critical applications in core industries. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow. www.vedantaaluminium.com
About Vedanta Limited:
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world’s leading Oil & Gas and Metals company with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa and Namibia. For two decades, Vedanta has been contributing significantly to nation building. Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment. Vedanta has put in place a comprehensive framework to be the ESG leader in the natural resources sector. Vedanta is committed to reducing carbon emissions to zero by 2050 or sooner and has pledged $5 billion over the next 10 years to accelerate the transition to net zero operations. Giving back is in the DNA of Vedanta, which is focused on enhancing the lives of local communities. The company’s flagship social impact program, Nand Ghars, have been set up as model anganwadis focused on eradicating child malnutrition, providing education, healthcare, and empowering women with skill development. Under the aegis of the Anil Agarwal Foundation, the umbrella entity for Vedanta’s social initiatives, the Vedanta group has pledged Rs 5000 crore over the next five years on social impact programmes with a thrust on nutrition, women & child development, healthcare, animal welfare, and grass-root level sports. Vedanta and the group companies have been featured in Dow Jones Sustainability Index, and was conferred Frost & Sullivan Sustainability Awards 2020, Golden Peacock Award for excellence in Corporate Governance 2022 and certified as a Great Place to Work 2022. Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange.
For more information, please visit www.vedantalimited.com
About Vedanta Aluminium Business:
Vedanta Aluminium, a business of Vedanta Limited, is India’s largest producer of aluminium, manufacturing more than half of India’s aluminium i.e., 2.29 million tonnes in FY23. It is a leader in value-added aluminium products that find critical applications in core industries. Vedanta Aluminium ranks 2nd in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for aluminium industry, a reflection of its sustainable development practices. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow.
For more information, please log on to www.vedantaaluminium.com
This press release contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional, and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.