Hyundai Motors India to Invest INR 38 Crore in Renewable Energy The collaboration is set to establish a solar power plant with a 75 MW capacity and a wind power facility of 42.9 MW in Tamil Nadu, bringing the total renewable energy capacity to 118 MW.
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In a significant move towards sustainability, Hyundai Motors India announced on November 20, 2024, that it has entered into a Share Subscription and Shareholders' Agreement (SSSHA) with Fourth Partner Energy Private Limited (FPEL) and its subsidiary, FPEL TN Wind Farm Private Limited. The agreement, disclosed in a regulatory filing, highlights Hyundai's commitment to integrating renewable energy into its operations.
The acquisition targets FPEL TN Wind Farm Private Limited, a company engaged in the generation and transmission of renewable energy, including solar and wind power. Under the agreement, Hyundai aims to enhance its renewable power capacity by subscribing to at least 26 per cent equity in FPEL TN Wind Farm. The investment, amounting to approximately INR 38.05 crore, will be made in one or more tranches within 14 months, subject to conditions outlined in the agreement.
The collaboration is set to establish a solar power plant with a 75 MW capacity and a wind power facility of 42.9 MW in Tamil Nadu, bringing the total renewable energy capacity to 118 MW. Operated under the Group Captive Model, the project will supply renewable energy directly to Hyundai, positioning the automaker as a 'captive user.'
This strategic investment aligns with Hyundai's broader sustainability goals, as the company seeks to diversify its energy sources and reduce its carbon footprint. By securing a stake in FPEL TN Wind Farm, Hyundai ensures access to cleaner energy while supporting India's renewable energy sector.
Hyundai's push into renewable energy reflects the growing trend among automakers to integrate sustainability into their value chain. This move not only reduces dependence on traditional energy sources but also reinforces the company's commitment to greener operations and long-term environmental goals.
FPEL TN Wind Farm Private Limited, a subsidiary of Fourth Partner Energy, is expected to play a pivotal role in executing this vision. The project's timeline indicates that it will be operational within 14 months, providing Hyundai with a steady stream of renewable energy and contributing to India's clean energy transition.
