Hindalco acquires 26% stake in Ayana Renewable to power its smelter in Odisha

Hindalco Industries has acquired a 26 per cent stake in Ayana Renewable Power Four for INR 1.62 crore in its latest move towards bolstering its renewable energy portfolio. This strategic investment aims to ensure a sustainable energy supply for its smelter in Odisha, with plans to provide 100 MW of round-the-clock energy.

As Hindalco solidifies its position as one of the foremost producers of primary aluminium in the nation, with manufacturing facilities spread across Uttar Pradesh, Madhya Pradesh, and Odisha, this acquisition marks a significant milestone. The transaction, completed in cash on Wednesday, now designates Ayana Renewable as an associate company of Hindalco Industries, per the disclosure made in an exchange filing.

Ayana Renewable, headquartered in Bengaluru and established in 2019, is significant in the renewable energy sector. It boasts a substantial energy portfolio of 5 GW as of March 2023 and is primarily owned by the National Infrastructure and Investment Fund.

Aditya Aluminium, situated in Sambalpur, Odisha, presently relies on coal power to support its operations, boasting a smelter capacity of 360,000 tonnes. Hindalco Industries has been proactive in adopting renewable energy solutions in line with its commitment to achieving carbon neutrality by 2050.

Notably, in 2022, the company entered into an agreement with the Greenko Group to develop 375-400 MW of solar and wind power capacity jointly. Given the substantial carbon footprint of smelting, which necessitates a consistent power supply, this initiative underscores Hindalco's dedication to sustainability.

Local manufacturing enterprises, including those in the cement and steel sectors, increasingly embrace renewable energy to power their operations, aligning with broader environmental goals. Hindalco's sustainability efforts have garnered international recognition, with the company securing the title of the most sustainable aluminium company globally for the third consecutive year in the 2022-23 period, according to the Dow Jones Sustainability Index rankings.

During this period, its renewable energy utilisation stood at over 54 per cent, equivalent to 150 MW, with a target of 300 MW by 2025. On Wednesday, shares of Hindalco Industries concluded trading at INR 579.90 on the National Stock Exchange, experiencing a marginal decline of 0.6 per cent from the previous close.