Hero Future Energies (HFE), the renewable energy arm of Hero Group, announced the signing of a tolling agreement with PIXON Green Energy, a domestic module manufacturer, for the supply of 500 MW high-efficiency solar photovoltaic modules annually.

Pixon will provide HFE with these modules on a prioritized basis for two years from their fully automated Ecoprogetti line based in Rajkot, Gujarat. The parties will also also be involved in the procurement of strategic components for module manufacturing.

“Global supply chains have been subject to disruption recently. Entering into a strategic partnership will allow us to control our costs better and have more visibility into our supply chain. This will help avoid any shocks that could impact our projects negatively, both in terms of costs and scheduling. We believe that this agreement will provide us with a steady supply of modules at less volatile prices, thereby enabling us to move forward towards realizing our pipeline of projects,” said Srivatsan Iyer, Global CEO of Hero Future Energies.

In an exclusive interview with Mercom, Iyer stated that HFE aims to expand its portfolio to over 5 GW of operational capacity within five years while establishing itself as a go-to partner for green hydrogen energy and mobility solutions.

Under the agreement, the company will provide Pixon with an assured offtake of modules based on their portfolio of 1.2 GW, which is under construction, and a strong pipeline of upcoming projects. This is expected to enable Pixon to allow for better capacity planning and resource allocation, resulting in more efficient operations.

“By engaging in co-procurement of strategic components, PIXON aims to enhance the reliability of our operations while simultaneously providing Hero Future Energies with a clearer view of the procurement process. This partnership reflects the industry’s commitment to driving down costs, increasing competitiveness, and ultimately accelerating the transition to a cleaner and more sustainable energy future,” said Sumit Mehta, co-founder and director at Pixon.

In 2022, HFE received an investment of $450 million when global investment firm Kohlberg Kravis Roberts signed a definite agreement with Hero Group to expand its renewable energy capacity.

(Image Credit – Ecoprogetti)