Indian state-run firm National Aluminium Company Limited (NALCO) has embarked on an ambitious, if conservative, strategy to start manufacturing green alumina by 2030. Nalco intends to increase its renewable energy capacity, spending USD 178 million to install a 15 MW wind farm and an additional 200-300 MW renewable capacity, underpinned by power purchase agreements where necessary.
Image source: https://nalcoindia.com/
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Nalco Chairman & MD Brijendra Pratap Singh said, "What we are planning is... whatever alumina we are producing, the power requirement for that alumina is very low. We have our own wind power plants in Andhra, and we will have capacity in Tamil Nadu. So, we will be trying to divert all this to our refineries. So (alumina) production from our refineries becomes totally green."
While Nalco presently has 200 MW of captive wind power, it does not foresee full decarbonisation in 2030 and is preparing consultancy-based plans for solar, wind, and hybrid power with battery backup to achieve a 35-40 per cent renewable energy mix. Interestingly, India's aluminium industry as a whole is expected to install 18-20 GW of renewable (solar and wind) capacity by 2030, supported by USD 4.8 billion of investment, supported by large energy storage systems.
Meanwhile, Nalco is going with coal as well, for stability and cost-effectiveness. It plans a huge USD 3.4 billion brownfield expansion, including a 0.5 MTPA smelter and a 1,080 MW captive thermal power plant in Angul, with commissioning expected by 2030.
The plan goes beyond energy: Nalco is increasing its alumina refinery capacity by 1 MTPA by June 2026 to fulfil growing domestic and export demand. India's domestic consumption of alumina is likely to be around 8 million tonnes by 2030.
The firm is also venturing into value-added alumina and aluminium products and is going to be the first to set up India's gallium extraction plant, converting alumina refining by-products to a high-value metal used in semiconductors and electronics.
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