Vedanta Aluminium recently announced long-term sourcing of 380 MW of renewable energy (RE) for its aluminium smelters. 180 MW of this RE will be for the aluminium smelter at Jharsuguda, Odisha and 200 MW for the Bharat Aluminium Company (BALCO), Korba, Chhattisgarh. This will be carried out through a Power Delivery Agreement (PDA) between Vedanta and Sterlite Power Technologies. 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. 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.
Charting its roadmap to Net Zero by 2050, Vedanta Aluminium is working on a three pronged-approach to decarbonise 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.
Speaking at the occasion, Rahul Sharma, CEO – Aluminium Business, Vedanta, stated, “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 utilisation.”