Coal India will invest $3 billion in clean energy projects for a boost to renewables
Coal India said it would set up clean energy project of around 4.5 gigawatts for a cost 250 billion rupees ($3 billion) as it strives to achieve zero net carbon emissions.
As part of a larger national goal to achieve zero net carbon emissions by the year 2070, the state-owned miner is diversifying its business beyond the polluting fossil fuel that remains a key component for the country's energy needs.
The coal giant aims to provide clean energy to the green ammonia plants of AM Green Ammonia in India through solar and wind power projects. The company did not specify a timeline for the construction of these projects.
AM Green, a company in which Greenko Group founders have significant stakes, aims to produce green ammonia at MTPA of 5 million tonnes by 2030.
Coal India’s clean energy project comes amid its drive for expanding its coal-powered capability, and at a moment when electricity demand has been increasing in the country thanks to climate changes and increased industrialisation.
India plans to increase its coal-fired power by 80 gigawatts between 2031 and 2032, from the current 222GW. In parallel, it also wants to add 500 GW clean energy to the mix by 2030, compared to the 172GW that is currently available.
The Indian renewable energy industry is facing several challenges. These include a lack of demand for tenders and delays in the power purchase agreements. ($1 = 85.6370 Indian rupees) (Reporting by Hritam Mukherjee in Bengaluru; Editing by Savio D'Souza)
(source: Reuters)
