Hyundai Motor India will source 118 MW of renewable energy from Fourth Partner Energy’s (FPEL) solar and wind projects under a group captive open access arrangement.

Hyundai and Fourth Partner have signed two 25-year Power purchase agreements (PPA) with FPEL TN Wind Farm, a special purpose vehicle (SPV) of Fourth Partner Energy.

Under the agreement, the SPV will establish and operate a 75 MW solar project and a 42.9 MW wind project in Tamil Nadu under the group captive model.

Hyundai Motors will subscribe to 26% shares in the SPV, investing ₹380 million (~$4.4 million) in one or more tranches.

Hyundai Motor India is working to increase its renewable energy consumption and reduce carbon emissions. The company, in its annual report for 2023, said that it met 64% of its energy needs from renewable sources.

The company aims to meet 100% of its energy needs from renewable sources by 2025.

“Our ‘Integrated Solutions to Climate Change’ initiative aims for carbon neutrality by 2045, with a sustainable operating system for future generations. We are expanding our electrification capabilities, transforming to renewable energy and reducing emissions,” the report said.

The company has installed a 10 MW solar project at its Chennai factory, contributing 5% of its renewable energy production. The company is also targeting 10 million annual sales of electric vehicles in India by 2030.

In 2022, Hyundai said four of its subsidiaries had become part of the RE100, a global initiative committed to large corporates moving toward 100% renewable electricity.

Fourth Partner is developing 1.2 GW of open access renewable energy projects across Maharashtra, Uttar Pradesh, Tamil Nadu, and Gujarat.

In 2023, Hyundai Motor Group said it would form a 50:50 joint venture with EV battery maker SK On to invest $5 billion in an EV battery cell production facility in the U.S.