Vedanta Aluminium signs 5-year natural gas deal with GAIL in shift to renewable energy

Vedanta's continued endeavour to shift its power sources to renewable energy has led to an agreement with GAIL Gas Limited, a subsidiary of GAIL (India) Limited, for the natural gas supply to Jharsuguda smelter. The transition to natural gas will expectedly become operational from the end of 2025, significantly reducing carbon footprint and minimising CO2 equivalent emissions by 47,292 tonnes annually.

Image Source: Vedanta Aluminium

This move is a significant part of Vedanta's ongoing journey towards achieving Net Zero emissions by 2050. The expedition contains two main strategies – one is increasing renewable energy usage and the other is creating carbon sinks through extensive afforestation.

Natural gas supply from GAIL is primarily destined for Vedanta's upcoming 430-kilo tonnes per annum (KTPA) cast house, designed to produce 250 KTPA of billets and 180 KTPA of other value-added products. With natural gas as a primary energy source, the new cast house will expectedly operate with 62 per cent reduced carbon emissions in a month, aligned with Vedanta's broad sustainability goals.

As per the terms signed, GAIL will supply about 32,000 standard cubic metres (SCM) of natural gas per day to Vedanta through a dedicated 7.5 km pipeline for the next five years upon the commissioning of cast house operations and pipeline.

Priya Agarwal Hebbar, Non-executive Director at Vedanta and Chairperson of Hindustan Zinc Limited, said: "At Vedanta, sustainability is at the heart of everything we do. Our partnership with GAIL Gas Limited is a testament to our commitment to reducing carbon emissions and embracing cleaner energy solutions. By transitioning to natural gas at our Jharsuguda operations—the largest aluminium plant in the world—we are taking a decisive step toward aligning our operations with India's clean energy vision and our ESG goals. This partnership is a step forward in our journey to grow responsibly and create a greener future for the generations to come."

While signing the agreement on behalf of the company, Sunil Gupta, Chief Operating Officer of Vedanta Aluminium, said: "Vedanta Aluminium's partnership with GAIL exemplifies our ambition to lead the aluminium industry in reducing environmental impact. This agreement is in line with our efforts to reduce carbon emissions and enhance our production capabilities, contributing to India's growing demand for aluminium in critical sectors. By embracing cleaner energy solutions, we aim to lead the way in creating a more sustainable future for the aluminium industry and our communities."