ArcelorMittal has commenced the supply of clean electricity to its Indian joint venture, AM/NS India, from a newly commissioned 1-gigawatt (GW) hybrid renewable energy project located in Andhra Pradesh.
This $700 million initiative, developed by AM Green Energy, a wholly-owned subsidiary of ArcelorMittal, represents the company’s largest renewable energy venture to date. The hybrid facility integrates solar and wind energy sources and is set to incorporate a hydro pumped storage system currently undergoing testing, with full operational status expected by June 2025. Once fully integrated, the project will deliver at least 250 megawatts (MW) of continuous, round-the-clock power, crucial for the uninterrupted operations of AM/NS India’s steel manufacturing processes at the Hazira plant in Gujarat.
Spanning 2,400 acres for solar installations and 700 acres for wind turbines, the site houses approximately 1.5 million solar panels and 91 wind turbines. Collectively, these installations are projected to generate around 2.5 billion kilowatt-hours (kWh) annually, sufficient to power nearly 10 million Indian homes. This energy output is expected to meet over 20% of the Hazira plant’s energy requirements, significantly reducing its reliance on fossil fuels. The environmental impact of this project is substantial, with an anticipated reduction of 1.5 million tonnes of carbon emissions per year. This aligns with AM/NS India’s objective to decrease the carbon intensity of its steel production by 20% by 2030, compared to 2021 levels.
An official from ArcelorMittal highlighted the project’s efficient execution, noting its completion within approximately 18 months—a remarkable feat for a project of this magnitude in India. The official emphasized that investing in renewable energy not only provides cost-effective and clean energy security for steelmaking operations but also supports the company’s broader decarbonization goals. This venture is part of ArcelorMittal’s broader renewable energy portfolio, which includes 2.3 GW of projects across India, Brazil, and Argentina. These initiatives are expected to contribute an additional $1.9 billion in annual EBITDA by the end of 2027, reinforcing the company’s commitment to sustainable growth.
The Andhra Pradesh project, in particular, aligns with the state’s Renewable Energy Export Policy 2020, which aims to promote the export of renewable energy beyond state borders. The clean electricity generated will be transmitted to the Hazira plant in Gujarat, exemplifying inter-state collaboration in India’s renewable energy sector. As the steel industry globally faces increasing pressure to reduce its carbon footprint, ArcelorMittal’s investment in renewable energy projects like this one sets a precedent for integrating sustainable practices into heavy industries. By leveraging hybrid renewable energy solutions, the company not only advances its environmental objectives but also contributes to India’s broader goals of achieving energy security and reducing greenhouse gas emissions.
The successful commissioning of the 1GW hybrid renewable energy project marks a pivotal moment in ArcelorMittal’s journey towards sustainable steel production. It demonstrates the feasibility and benefits of integrating large-scale renewable energy solutions into industrial operations, paving the way for a greener future in the steel manufacturing sector.
ArcelorMittal Launches 1GW Green Power in Andhra
