ArcelorMittal S.A. MT announced three new renewable energy projects in India, expanding its portfolio. The projects are expected to increase MT’s renewable energy capacity in India by two-fold to 2 GW and also boost globally to 3.3GW. The three proposed projects will be located at Amaravati in Maharashtra, Bikaner in Rajasthan and Bachau in Gujarat.
The Amaravati plant will have a solar capacity of 36MW, resulting in annual CO2 savings of 0.04 million tons. It is forecasted to be completed by the first half of 2027. The Bikaner plant, with a solar capacity of 400MW and battery energy storage of 500MW, will result in annual CO2 savings of 0.65 million tons. It will be completed by the early half of 2028.
Lastly, the Bachau plant is planned to have 250MW wind and 300MW solar capacity, along with 300MWh integrated battery storage. The annual CO2 savings will be at 0.9 million tons with expected completion by the first half of 2028.
The combined project cost is estimated at $0.9 billion. The power generated through these will be supplied to AMNS India, ArcelorMittal’s 60/40 Indian steelmaking joint venture with Nippon Steel. Alongside these three projects, AMNS India is also developing its own renewable energy project, which will be very similar to the proposed Bachau plant of MT.
MT’s previous 1GW Indian renewables project, paired with the three new projects, will deliver total annual CO2 savings of 4 million tons and provide 35% of electricity requirements for AMNS India’s Hazira steelmaking operations. MT also has such projects in Brazil and Argentina through partnerships. Once operational, its Indian, Brazilian and Argentinian projects will provide a total of 3.3GW of electrical power generation.
MT’s shares have gained 94.5% over the past year compared with the industry’s 45.2% rise.
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MT currently carries a Zacks Rank #3 (Hold).
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