IMFA acquires 26% stake in EG Urja Strot for renewable power supply
Indian Metals & Ferro Alloys Ltd (IMFA) has acquired a 26% equity stake in EG Urja Strot Private Limited for about Rs 110.18 crore as part of its strategy to strengthen energy security and expand renewable energy usage across its ferrochrome operations.
The company has also entered into a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the captive consumer model for supply of 65 MW of hybrid renewable power, according to a regulatory filing.
The proposed renewable energy project will comprise 81.4 MW of solar capacity, 102.6 MW of wind capacity, and a 25 MWh Battery Energy Storage System (BESS). IMFA will source 65 MW from the project as a captive consumer.
The project is scheduled for completion by June 2027.
This arrangement is in addition to IMFA’s previously announced 70 MWp hybrid renewable energy sourcing plan, which is expected to commence in the second quarter of FY27. Following both agreements, the company’s total contracted renewable energy capacity has reached 135 MW.
According to the company, renewable energy is expected to contribute nearly 40% of its overall energy mix in the next fiscal year. The company said the agreements are intended to support stable and cost-efficient power supply for its industrial operations.
The renewable energy arrangements are also projected to reduce carbon emissions by nearly 1.6 lakh tonnes annually and around 45 lakh tonnes over the tenure of the agreement.
Binoy Agarwalla, Vice President and Head of Power Business Unit at IMFA, said the investment is aligned with the company’s long-term strategy to improve energy security and increase renewable energy adoption.
He added that the integration of solar, wind, and battery storage systems is expected to improve operational efficiency and enhance stability in long-term power procurement.
Kalinganagar expansion
Established in 1961, IMFA operates a furnace capacity of 289 MVA with an annual production capacity of 4,34,000 tonnes. The company also owns captive chrome ore mines along with coal-based and solar power assets.
IMFA is currently developing a greenfield ferrochrome project at Kalinganagar. The expansion is expected to increase total furnace capacity to 355 MVA, equivalent to 5,34,000 tonnes per annum.
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