Hindustan Zinc strengthens renewable energy commitment with 530MW Serentica partnership

Hindustan Zinc Limited, India’s largest and the world’s second-largest integrated zinc producer, has announced an expansion of its renewable energy partnership with Serentica Renewables, a major player in India’s clean energy sector. The company has signed an agreement that increases its round-the-clock renewable energy capacity from 450 MW to 530 MW. This strategic move will now supply over 70% of Hindustan Zinc’s total power requirement from renewable sources, reinforcing its commitment to achieving net-zero carbon emissions by 2050.

This landmark agreement is one of the most advanced renewable power delivery models in the country, ensuring a guaranteed minimum supply of 315 MW at all times through every 15-minute interval. By integrating solar, wind, and state-of-the-art energy storage systems across multiple locations in India, the project is set to revolutionize industrial power procurement.

Revolutionizing Renewable Energy Procurement

Unlike conventional renewable energy contracts, Hindustan Zinc’s new agreement with Serentica Renewables moves beyond traditional round-the-clock supply models. Instead, it implements a sophisticated Time Block-Based Firm Renewable Energy Solution, which guarantees a continuous and predictable power supply. By overcoming the intermittency challenges that have traditionally hindered renewable energy adoption, this approach ensures that Hindustan Zinc receives stable, reliable, and dispatchable power.

Serentica Renewables has been a key player in India’s energy transition by integrating cutting-edge technology for grid management, advanced forecasting, and hybrid renewable systems. The company’s expertise in balancing solar and wind energy with battery storage solutions makes this project a crucial step in reducing the industrial sector’s carbon footprint.

Strategic Impact on Hindustan Zinc’s Sustainability Goals

Hindustan Zinc has been at the forefront of sustainability in the metals and mining sector. Recognized as the world’s most sustainable mining company for two consecutive years by the S&P Global Corporate Sustainability Assessment, the company is actively working toward reducing greenhouse gas (GHG) emissions.

The new power agreement with Serentica Renewables aligns with Hindustan Zinc’s ambitious decarbonization strategy, which includes:

• Expanding renewable energy usage to replace conventional power sources.
• Enhancing energy efficiency across mining and production operations.
• Transitioning to cleaner fuels and electric vehicles.

Already, the company has achieved a 14% reduction in GHG emissions intensity compared to its 2020 baseline. The initial renewable power flow from Serentica’s 180 MW solar park has also contributed to the production of EcoZen, Asia’s first low-carbon ‘green’ zinc.

Industry Leaders Comment on the Deal

Hindustan Zinc’s CEO, Arun Misra, emphasized the company’s role in the global clean energy transition. He highlighted that by securing 70% of its power from renewable sources, the company is setting a new industry benchmark and significantly cutting its carbon emissions.

Serentica Renewables’ CEO, Akshay Hiranandani, stated that the agreement represents a breakthrough in providing uninterrupted, firm renewable energy to one of India’s largest industrial players. He noted that ensuring a minimum of 315 MW power availability in every 15-minute time block is a major step forward in addressing industrial energy reliability.

Financial and Market Implications

This agreement reinforces Hindustan Zinc’s competitive advantage in the market. With sustainability becoming a key investment criterion, the company’s commitment to clean energy enhances its appeal to ESG-focused investors.

Serentica Renewables, backed by a $650 million investment from KKR, has been expanding its footprint in India’s renewable energy sector. The company recently won the ‘Deal of the Year – Financial’ award at the 26th S&P Global Energy Awards, underscoring its growing prominence in global energy transition efforts.

Future Roadmap: Hindustan Zinc’s Path to Net Zero

Hindustan Zinc has set ambitious targets to achieve net-zero emissions by 2050 or sooner. As the first Indian metals and mining company with validated Science Based Targets Initiative (SBTi) goals, the company is aligning with the global 1.5°C warming threshold.

In addition to its renewable energy initiatives, the company is working on:

• Expanding electric vehicle adoption within its mining fleet.
• Deploying smart mining technologies to optimize energy usage.
• Scaling up research on alternative sustainable mining practices.
• A Major Milestone in India’s Clean Energy Transition

This agreement between Hindustan Zinc and Serentica Renewables sets a precedent for large-scale industrial renewable energy adoption. As one of India’s top sustainability-driven companies, Hindustan Zinc continues to push the boundaries of decarbonization, aligning its operations with the country’s ambitious net-zero goals.

The project is expected to be fully operational by 2027, marking a significant shift in how industrial players source and consume renewable energy.