Coal India Signs MoU to Provide 4,500MW of Renewable Electricity to AM Green
The state-run coal mining giant Coal India Ltd. has inked a memorandum of understanding (MoU) to provide 4,500MW of renewable electricity to AM Green's green ammonia facilities, which are funded by Greenko founders, as the company diversifies its activities in the midst of the energy transformation race.
According to AM Green, it is one of the biggest renewable energy contracts in the world. The two organizations signed a formal, non-binding Memorandum of Understanding on May 7th for the long-term supply and sourcing of solar and wind energy.
To provide a consistent supply of green energy for its facilities, AM Green will combine pumped hydro storage with the two renewable sources provided by CIL.
CIL will invest around Rs.25,000 crore to set up capacities to fulfil the contract. “While the solar power capacity would be to the tune of 2,500MW to 3,000MW, wind is expected to account between 1,500MW and 2,000 MW at an estimated total outlay of around Rs.25,000 crore. Potential sites for wind projects will be explored in the southern states of the country. And, for solar plants in sunny states like Gujarat and Rajasthan”.
“While coal remains our mainstay in meeting India’s expanding energy needs in the near term, our plans include a proactive role in building a greener and more sustainable future", says P.M. Prasad, chairman and managing director of Coal India Ltd.
"This is in consonance with our commitment to become the country’s integrated energy provider", adds Prasad.
AM Green was created as a platform for the energy transition. Through its different business verticals, which are housed in its subsidiaries, it seeks to generate sustainable aviation fuel, green ammonia, green hydrogen, green chemicals, and biofuels as well as to form alliances and provide relevant technical services.
Green chemicals, green hydrogen, and biofuels will all be produced at AM Green.
With an estimated $6 billion investment, its minerals division, AMG Metals & Minerals (AMG M&M), has also partnered with Rio Tinto, a significant mining company worldwide, to establish the largest renewable-powered aluminum complex in the world.
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Furthermore, new energy sources will eventually take center stage, even if coal output and use for power generation have accelerated due to increased electricity demand. CIL has made efforts in recent years to diversify its business and transition to cleaner fuels.