NALCO plans to build 200–300 MW renewable power capacity for greener aluminium production

Image source: NALCO

Intending to revamp energy configuration for aluminium operations,  NALCO is making sincere efforts to reduce carbon emissions from its power-intensive industrial processes by minimising its dependence on coal-based captive power generation. Presently, the state-owned miner and metal producer is evaluating the development of 200–300 MW of renewable power capacity, supported by battery energy storage systems, to ensure a steady electricity supply for its smelters.

NALCO currently operates 1,100 MW of captive coal-fired power plants, which contribute close to 80 per cent of its total carbon emissions. Coal-generated electricity is priced at around INR 3 to 3.5 (3.3 to 3.8 cents) and offers cost advantages, while renewable power remains extremely expensive, with tariffs ranging from INR 4.5 to 5 (4.9 to 5.5 cents) per unit.

But despite higher costs, the transition is necessary considering the global demand for greener industrial materials and stringent sustainability expectations, said NALCO’s Managing Director and Chairman Brijendra Pratap Singh. 

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Yet power costs are non-ignorable as they account for 35 to 40 per cent of the aluminium production expenses, which makes energy sourcing a strategic consideration.Hence, NALCO is exploring power purchase agreements to address cost and supply reliability concerns. Alongside it is focused on in-house renewable generation. To design a procurement and storage strategy for ensuring an uninterrupted power supply, a consultant is appointed. At the same time, a battery backup is also designed to support an intermittent power supply during a power outage.

The company has already begun laying the groundwork for its transition.  NALCO has installed 198 MW of wind power capacity at various locations across the country and added 1,020 kW of rooftop solar installations at its facilities as part of its longer-term decarbonisation plan.

The renewable energy push is being pursued alongside several expansion projects across  NALCO’s operations. At its alumina refinery, the company is progressing with the addition of a fifth stream, which will increase capacity from 2.1 million tonnes to 3.1 million tonnes per annum.

To support future growth,  NALCO is advancing development of the Pottangi bauxite mines in Odisha’s Koraput district. Mining lease agreements have been executed, and operations are expected to begin shortly. Additionally,  NALCO is taking care of the 0.5 million tonnes per annum brownfield expansion at its aluminium smelter. 

Such an initiative by  NALCO towards energy transition is quite a critical move to keep its competitive edge intact in a carbon-conscious global aluminium market.

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