Nalco Plans Green Power Shift for Aluminium Operations
POWER & RENEWABLE ENERGY

Nalco Plans Green Power Shift for Aluminium Operations

State-owned National Aluminium Company Ltd (Nalco) is accelerating its transition towards renewable energy, with plans to develop 200–300 megawatts of green power capacity backed by battery storage to ensure reliable supply and significantly reduce carbon emissions from its power-intensive smelting operations.

Nalco currently depends entirely on coal-based captive power plants, which account for around 80 per cent of its total carbon emissions. The company aims to ramp up its efforts to produce green aluminium as part of its long-term sustainability strategy, according to Chairman and Managing Director Brijendra Pratap Singh.

Power costs form a substantial share of aluminium production expenses, with smelting accounting for roughly 35–40 per cent of total costs. Nalco’s in-house coal-based power is currently priced at around Rs 3–3.5 per unit, while green power tariffs range between Rs 4.5 and 5 per unit, highlighting the cost challenges associated with the transition.

To address these challenges, Nalco is pursuing multiple approaches, including signing power purchase agreements, developing its own renewable power plants and appointing a consultant to design strategies for securing green energy at competitive costs with round-the-clock availability. The planned 200–300 megawatts of renewable capacity with battery storage is expected to play a critical role in reducing emissions while maintaining operational reliability.

Despite higher green power tariffs and concerns over supply consistency, Nalco views the shift as essential for sustainable aluminium production. As part of its green initiatives, the company has already installed 198 megawatts of wind power capacity across various locations in India, along with rooftop solar systems totalling 1,020 kilowatt-peak at its facilities.

Alongside its energy transition, Nalco is advancing major expansion projects in its core aluminium business. The company plans to add a fifth stream at its alumina refinery, increasing capacity from 2.1 million tonnes to 3.1 million tonnes. To secure raw material supply, Nalco is developing the Pottangi bauxite mines in Koraput district, Odisha, with mining lease deeds already signed and operations expected to begin shortly.

Nalco has also commenced coal mining from the Utkal D and E blocks to reduce fuel costs and is undertaking a brownfield expansion of its smelter with an additional capacity of 0.5 million tonnes per annum, reinforcing its growth strategy alongside its sustainability goals.

State-owned National Aluminium Company Ltd (Nalco) is accelerating its transition towards renewable energy, with plans to develop 200–300 megawatts of green power capacity backed by battery storage to ensure reliable supply and significantly reduce carbon emissions from its power-intensive smelting operations. Nalco currently depends entirely on coal-based captive power plants, which account for around 80 per cent of its total carbon emissions. The company aims to ramp up its efforts to produce green aluminium as part of its long-term sustainability strategy, according to Chairman and Managing Director Brijendra Pratap Singh. Power costs form a substantial share of aluminium production expenses, with smelting accounting for roughly 35–40 per cent of total costs. Nalco’s in-house coal-based power is currently priced at around Rs 3–3.5 per unit, while green power tariffs range between Rs 4.5 and 5 per unit, highlighting the cost challenges associated with the transition. To address these challenges, Nalco is pursuing multiple approaches, including signing power purchase agreements, developing its own renewable power plants and appointing a consultant to design strategies for securing green energy at competitive costs with round-the-clock availability. The planned 200–300 megawatts of renewable capacity with battery storage is expected to play a critical role in reducing emissions while maintaining operational reliability. Despite higher green power tariffs and concerns over supply consistency, Nalco views the shift as essential for sustainable aluminium production. As part of its green initiatives, the company has already installed 198 megawatts of wind power capacity across various locations in India, along with rooftop solar systems totalling 1,020 kilowatt-peak at its facilities. Alongside its energy transition, Nalco is advancing major expansion projects in its core aluminium business. The company plans to add a fifth stream at its alumina refinery, increasing capacity from 2.1 million tonnes to 3.1 million tonnes. To secure raw material supply, Nalco is developing the Pottangi bauxite mines in Koraput district, Odisha, with mining lease deeds already signed and operations expected to begin shortly. Nalco has also commenced coal mining from the Utkal D and E blocks to reduce fuel costs and is undertaking a brownfield expansion of its smelter with an additional capacity of 0.5 million tonnes per annum, reinforcing its growth strategy alongside its sustainability goals.

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