Hyundai Motor India Ltd to set up 2 renewable energy plants in Tamil Nadu for Rs 38 crore

Hyundai Motor India Limited (HMIL) has announced a major step toward achieving its RE100 target by setting up two renewable energy plants in Tamil Nadu. The company signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) to accelerate its transition to 100 per cent renewable electricity by 2025.

Currently, HMIL meets 63 per cent of its energy requirements through renewable sources, and with this, it aims to reach its target well ahead of many other automakers in the country. RE100 is a global initiative by the Climate Group, aiming to bring together businesses committed to using 100 per cent renewable electricity.

The agreement was signed at HMIL’s Chennai manufacturing plant by Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer of HMIL, and Karan Chadha, National Head, Business Development at FPEL. The partnership will see an investment of Rs 38 crore towards setting up the two renewable energy plants, which will generate wind and solar power. 

The plants will operate under a Group Captive Mode, with HMIL holding a 26 per cent stake and FPEL a 74 per cent equity share in the project. This long-term agreement ensures that HMIL will receive a consistent supply of renewable energy for the next 25 years.

Gopalakrishnan Chathapuram Sivaramakrishnan Whole-time Director & Chief Manufacturing Officer, HMIL stated, “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 alsoliving 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.”

Vivek Subramanian, Co-Founder & Executive Director at FPEL, added, “We are proud to collaborate with HMIL in accelerating their journey towards 100% renewable energy."

"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,” he added.

HMIL's energy management initiatives also include transitioning to LED lighting, adopting thermo-ceramic coatings to reduce fuel consumption, and implementing waste heat recovery systems, further strengthening its sustainability efforts. With a growing renewable energy portfolio, including a 10 MW rooftop solar plant in Chennai, HMIL is on track to meet its environmental stewardship goals.