Hindustan Zinc Limited (NSE: HINDZINC), India’s largest and the world’s second-largest integrated zinc producer, is accelerating its transition to sustainable energy by expanding its collaboration with Serentica Renewables. Under a newly established Power Delivery Agreement (PDA), Hindustan Zinc will now procure 530 MW of round-the-clock (RTC) renewable energy, a significant increase from the previously committed 450 MW. This move marks a major milestone in the company’s journey toward achieving net-zero emissions by 2050 or sooner.
Transforming Industrial Energy Consumption
This pioneering agreement sets a new industry standard by ensuring a minimum of 315 MW of uninterrupted power in every 15-minute time block. This firm and dispatchable renewable energy solution enhances reliability while reinforcing Hindustan Zinc’s commitment to green energy adoption.
Key Impacts: 70% Renewable Energy Integration
The expansion in renewable energy sourcing will now meet over 70% of Hindustan Zinc’s total power requirements. The transition significantly reduces the company’s reliance on conventional energy sources, lowering carbon emissions and promoting sustainability. The renewable power flow has already begun, with the initial 180 MW coming from Serentica’s solar park, contributing to the production of Asia’s first low-carbon ‘green’ zinc, EcoZen.
This initiative is structured under a captive power framework, strategically distributed across multiple high-resource locations in India. The integration of solar, wind, and advanced energy storage technologies ensures a seamless and dependable renewable energy supply. The project is expected to reach full operational capacity by 2027.
Revolutionizing the Energy Procurement Landscape
Unlike traditional renewable energy agreements, this PDA redefines industrial energy procurement by offering scheduled and dispatchable energy solutions. Through advanced forecasting, superior grid management, and innovative energy storage solutions, Serentica Renewables is enabling industrial players to shift toward reliable, firm renewable energy without compromising operational efficiency.
Driving India’s Net-Zero Ambitions
This agreement is instrumental in India’s broader decarbonization efforts, serving as a blueprint for large-scale industrial sustainability. Hindustan Zinc is demonstrating how industries can lead the transition to a low-carbon economy by adopting next-generation renewable energy solutions.
Sustainability and Carbon Footprint Reduction
As the world’s most sustainable metals and mining company, according to the S&P Global Corporate Sustainability Assessment 2024, Hindustan Zinc is making significant strides in reducing its environmental footprint. The company has achieved a 14% reduction in greenhouse gas (GHG) emissions intensity compared to its 2020 baseline. This achievement is driven by:
- Expanding the use of renewable energy.
- Improving operational efficiencies.
- Transitioning to cleaner fuels and electric vehicle fleets.
Executive Insights on the Strategic Partnership
Arun Misra, CEO of Hindustan Zinc Limited, emphasized the company’s forward-looking approach:
“Sustainability is central to our business strategy. By securing 70% of our power from renewables, we are working towards a nearly 70% reduction in carbon emissions. As the world shifts towards a low-carbon economy, we are positioning ourselves as both a leader and an active participant in this transformation.”
Akshay Hiranandani, CEO of Serentica Renewables, highlighted the innovation in energy reliability:
“This agreement marks a breakthrough in industrial power supply by ensuring uninterrupted firm renewable energy. Our commitment to providing 315 MW in every 15-minute time block is addressing the key challenge of intermittency, ensuring Hindustan Zinc operates with a stable and sustainable power supply.”
Serentica Renewables: Global Recognition in Energy Transition
Serentica Renewables has gained international acclaim for its expertise in firm renewable energy solutions. At the 26th S&P Global Energy Awards, the company received the prestigious ‘Deal of the Year – Financial’ award, further cementing its role in the global transition to sustainable energy.
Hindustan Zinc’s Leadership in Sustainability
Hindustan Zinc is the first Indian metals and mining company to have validated Science-Based Targets Initiative (SBTi) targets aligned with the 1.5°C global warming goal. Additionally, its product portfolio is the first in India to receive Environmental Product Declaration (EPD) verification, ensuring transparent environmental impact data.
As a subsidiary of the Vedanta Group, Hindustan Zinc holds a dominant 75% market share in India’s primary zinc industry and maintains a strong presence across 40 countries. Recognized among the top 1% of companies globally in the S&P Global Sustainability Yearbook, the company continues to set industry benchmarks in decarbonization and environmental responsibility.
Key Highlights
| Aspect | Details |
|---|---|
| Renewable Energy Commitment | Increased from 450 MW to 530 MW |
| Round-the-Clock Power Supply | Minimum 315 MW every 15-minute block |
| Renewable Energy Share | Over 70% of total power needs |
| Net-Zero Goal | By 2050 or earlier |
| Project Completion | Full capacity by 2027 |
| Carbon Emissions Reduction | 14% reduction from 2020 baseline |
| Industry Leadership | First Indian mining company with SBTi targets |
Frequently Asked Questions (FAQs)
Q1: What is the significance of the increased renewable energy capacity?
A1: The expansion from 450 MW to 530 MW enables Hindustan Zinc to source over 70% of its power from renewables, reducing carbon emissions and enhancing sustainability.
Q2: How does the RTC renewable energy agreement benefit industrial operations?
A2: By ensuring a minimum of 315 MW in every 15-minute interval, the agreement provides stable, reliable, and dispatchable renewable energy, overcoming the intermittency challenge.
Q3: When will the project be fully operational?
A3: The renewable energy project is expected to reach full operational capacity by 2027.
Q4: How is Hindustan Zinc contributing to India’s net-zero goals?
A4: Through large-scale renewable energy adoption, cleaner fuel transitions, and improved efficiency, Hindustan Zinc is leading the way in industrial decarbonization.
Q5: What recognition has Serentica Renewables received for its efforts?
A5: Serentica won the ‘Deal of the Year – Financial’ award at the 26th S&P Global Energy Awards, highlighting its leadership in sustainable energy solutions.
Click here to learn more.
Sachin is a dedicated writer specializing in education, career, and recruitment topics, delivering clear and actionable insights to empower readers.