Hyundai Motor India Ltd (HMIL) announced plans to establish two renewable energy plants at its vehicle manufacturing unit in Tamil Nadu, as part of its commitment to transition to 100% renewable electricity across manufacturing operations by 2025. The initiative involves a 75 MW solar plant and a 43 MW wind power plant aimed at fulfilling HMIL’s renewable energy requirements. This effort is in partnership with Fourth Partner Energy Ltd (FPEL), under a power purchase and shareholder agreement, HMIL stated on Thursday.

The renewable facilities will operate in a group captive mode through a special purpose vehicle (SPV) dedicated to engineering, procurement, construction, operations, and maintenance. HMIL will hold a 26% equity stake, while FPEL will hold 74% equity stake in the project. This partnership ensures a 25-year supply of renewable energy to Hyundai’s Tamil Nadu operations.

As part of this collaboration, HMIL will invest ₹38 crore towards setting up these renewable energy plants. Highlighting the importance of this milestone, HMIL Whole-time Director & Chief Manufacturing Officer, Gopalakrishnan Chathapuram Sivaramakrishnan, remarked, “This partnership reaffirms our commitment to sustainability and will help us achieve the RE100 benchmark by 2025.”

This project underscores HMIL’s dedication to sustainability and renewable energy, aligning with its broader goals of environmentally responsible manufacturing practices.