Upl increases renewable energy push with new project in Gujarat

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UPL’s move comes amid growing pressure from businesses around the world to adapt to cleaner energy sources and fossil fuels. Big oil companies like Exxon Mobil, Shell, British Petroleum and Total are already turning to low-carbon companies.

wealth desk

Agrochemical manufacturer UPL Ltd. will increase the use of renewable energy for its total electricity consumption through a joint venture with CleanMax Enviro Energy Solutions. The JV will construct a 61.05 megawatt wind-solar hybrid power project in Gujarat. The plant will have a capacity of 28.05 megawatts of solar power and 33 megawatts of wind power.

UPL’s move comes amid growing pressure from businesses around the world to adapt to cleaner energy sources and fossil fuels. Big oil companies like Exxon Mobil, Shell, British Petroleum and Total are already turning to low-carbon companies.

Shares of UPL were trading down 2.1% at Rs 727 on BSE at 11:15 a.m. The stock is down 5% this year.

When completed, the project will increase UPL’s use of renewable energy to 30% of its total global electricity consumption from previous levels of 8%.

The captive project will result in a carbon reduction of 1.25 lakh tonnes of carbon dioxide equivalent per year. “The hybrid power plant combines wind and solar power to maintain a consistently high supply of renewable energy for UPL over the months and at different times of the day,” said Kuldeep Jain, founder and CEO of CleanMax.

At the United Nations climate talks last year, Prime Minister Narendra Modi said India would increase its electricity capacity from non-fossil fuels to 500 gigawatts by 2030.

Indian companies have also embarked on zero emissions goals. Indian Oil said last month it plans to achieve net zero operational emissions by 2046. BPCL has also made a foray into the renewable energy sector and plans to have 10 gigawatts of capacity by 2040. .

UPL has also signed a definitive agreement to acquire 26% of the capital of Clean Max Kratos Pvt. ltd. The latter is a Mumbai-based renewable energy company. UPL will initially acquire 2,600 shares for a total amount of Rs 26,000, while it has committed to invest Rs 39.60 crore in CleanMax in one or more tranches.

Last month, UPL announced a collaboration with ORO Agri to co-distribute a biosolution effective against a wide range of pests and diseases.

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