Power producer Oyster Renewable Energy on Wednesday announced a partnership with Jindal Stainless to supply clean power to the stainless steel manufacturer.
The tie-up is a step towards decarbonising the industrial sector in India. It raises the bar for transition to low-carbon manufacturing and accelerates India's path toward achieving its net-zero ambitions, according to a statement.
"At the heart of this partnership lies a cutting-edge 282 MW interstate wind-solar hybrid project, strategically located across Bhuj (Gujarat) and Agar (Madhya Pradesh)," the statement said..
The project will combine 82 MW of wind plus 135 MWp of solar in Madhya Pradesh, as well as 99 MW of wind in Gujarat.
With this collaboration, Jindal Stainless has acquired a 33.64 per cent equity stake in Oyster Green Hybrid One Pvt Ltd, a Special Purpose Vehicle (SPV) promoted by Oyster Renewable.
The initiative is backed by a Rs 1,517-crore loan sanctioned by Indian Renewable Energy Development Agency (IREDA) and will operate under a 25-year group captive power purchase agreement (PPA), directly supplying clean power to Jindal Stainless' manufacturing operations.
This plant will significantly reduce dependence on conventional grid electricity and help reduce CO2 emissions by about 7 lakh metric tonnes annually, equivalent to planting 3 crore trees per year.