Adani-IHC aluminium project to be powered by Adani’s 4,000 MW captive capacity

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The high-profile Adani-IHC aluminium project will reportedly draw electricity from a 4,000 MW captive power plant and a green energy component of about 400 megawatts for running 4 million tonnes per annum of alumina, 2 million tonnes per annum of aluminium and 1 million tonnes per annum of downstream production. This entire project will be a 50:50 joint venture between Adani and  Abu Dhabi-based International Holding Company (IHC).

The USD 11.5 billion-worth project in Odisha is seen as a strategic step by Adani to expand its position into the commodity space after an investment in a USD 1.2 billion greenfield copper smelter and refinery in Gujarat.

The investment in aluminium comes as India works to expand domestic aluminium production. India produced about 4.2 million tonnes of aluminium in FY2024-25, while domestic consumption was around 5.5 million tonnes. The country aims to raise aluminium production capacity to 37 MTPA by FY2047 and capture 10 per cent of the global market.

The project will be developed in two phases. Phase 1 involves an investment of INR 660 billion (USD 7 billion), while Phase 2 will require INR 440 billion (USD 4.6 billion). Odisha, which accounts for around 54 per cent of India's aluminium production because of its large bauxite reserves, will host the project. The company estimates it will create around 35,000 jobs during construction and 18,500 permanent jobs after commissioning.

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The company has also signed long-term agreements with the Odisha Mining Corporation (OMC) for raw material supply, while logistics are expected to be supported through Dhamra Port.