Nalco eyes 200-300 MW green power with battery storage for clean aluminium

Nalco plans 200-300 MW green power with battery storage to decarbonise smelting operations, reduce reliance on coal-based power and support sustainable aluminium growth

State-owned Nalco is transitioning its power-intensive smelting operations to renewable energy sources, and plans to set up 200-300 MW of green power capacity backed by battery storage to ensure a reliable supply and significantly cut overall carbon emissions.

Nalco, which currently relies 100 per cent on coal-based captive power plants that account for 80 per cent of its carbon emissions, plans to ramp up its efforts to produce green aluminium, its Chairman-cum-Managing Director (CMD) Brijendra Pratap Singh said.

The smelting process, which constitutes 35-40 per cent of production costs, draws power from in-house coal plants at Rs 3-3.5 per unit, while green power rates hover at Rs 4.5-5 per unit, he said.

In a bid to address this, National Aluminium Company Ltd (Nalco) is pursuing power purchase agreements (PPAs), developing its own green power plants, and appointing a consultant to devise strategies for securing green energy at minimal cost with round-the-clock availability, he said.

Plans include setting up 200-300 MW of green power capacity backed by battery storage to ensure a reliable supply and significantly cut overall carbon emissions, he added.

Challenges such as higher green power tariffs and supply consistency remain, but the shift is critical for sustainable aluminium production, he explained.

As a part of a green initiative, the company has installed 198 mw wind power plants at various locations in the country and 1020 kWp rooftop solar power plants at its premises for carbon neutrality.

The company, pursuing its corporate expansion strategy, is advancing key projects in its core business.

These include a fifth stream at its alumina refinery to raise capacity from 2.1 million tonnes to 3.1 million tonnes. To secure raw materials, it is developing the Pottangi bauxite mines at the Koraput district in Odisha, with mining lease deeds already signed, operations are set to begin shortly.

The company has commenced coal mining from Utkal D and E blocks, helping cut costs. It is also undertaking a 0.5 million tonnes per annum brownfield expansion of its smelter.