Vedanta Aluminium, India’s largest aluminium producer, has signed a gas sales agreement (GSA) with GAIL Gas Limited, a subsidiary of GAIL (India) Limited, to fuel its operations with natural gas. This collaboration marks a critical move towards greener production practices at Vedanta’s Jharsuguda smelter, the largest aluminium plant in the world.
Under this agreement, GAIL will supply Vedanta Aluminium with approximately 32,000 standard cubic metres (SCM) of natural gas daily. A dedicated 7.5 km pipeline will be constructed to supply the required natural gas to the plant, which is also set to power the company’s upcoming 430 KTPA cast house. This facility will produce 250 KTPA of billets and 180 KTPA of other value-added aluminium products, boosting both the company’s capacity and its commitment to sustainable growth. The shift to natural gas, expected to commence in late 2025, is anticipated to significantly reduce Vedanta’s carbon footprint. The move will reduce carbon emissions by 47,292 tonnes of CO₂ equivalent (tCO₂e) annually. The impact is set to be particularly noticeable on the Jharsuguda plant, where the transition to natural gas will lead to a remarkable 62% reduction in carbon emissions per month—equivalent to 3,941 tonnes of CO₂e. This aligns with Vedanta Aluminium’s long-term environmental goals, including achieving Net Zero emissions by 2050. Non-executive Director at Vedanta and Chairperson of Hindustan Zinc Limited, highlighted that the partnership with GAIL is in line with India’s clean energy vision and the company’s own environmental, social, and governance (ESG) targets. She stated, “This partnership is a decisive step in reducing carbon emissions and embracing cleaner energy solutions.”
Vedanta Aluminium’s Chief Operating Officer, Sunil Gupta, emphasized the significance of this agreement in reducing the industry’s environmental impact. “By adopting cleaner energy solutions, we aim to contribute to India’s growing aluminium demand while ensuring the industry’s sustainability and benefiting our communities,” he remarked. With India’s aluminium production demand on the rise, Vedanta’s move to clean energy is timely. The company already produces more than half of India’s aluminium, and in FY24, it reported a production volume of 2.37 million tonnes. This collaboration not only strengthens Vedanta’s position as a leader in the aluminium industry but also sets a strong precedent for other companies to adopt sustainable practices in line with India’s Net Zero commitments. In a market that is increasingly prioritising environmental responsibility, this partnership signifies a forward-thinking approach to achieving cleaner production. As Vedanta and GAIL work together, the alliance stands as a testament to how industries can embrace innovation and environmental responsibility, ensuring that future generations benefit from sustainable and cleaner energy solutions.
