The Business Bytes
New Delhi, November 20, 2024 (TBB Bureau): In a landmark step towards sustainable industrial practices, Vedanta Aluminium, India’s largest aluminium producer, has inked a Gas Sales Agreement (GSA) with GAIL Gas Limited, a subsidiary of GAIL (India) Limited. This collaboration will power Vedanta’s world-renowned Jharsuguda smelter, the largest aluminium plant globally, with natural gas, marking a pivotal transition to cleaner energy.
This shift, set to be operational by late 2025, is expected to significantly slash carbon emissions, reducing them by an estimated 47,292 tonnes of CO₂ equivalent (tCO₂e) annually. The initiative aligns with Vedanta Aluminium’s ambitious Net Zero 2050 target, which focuses on renewable energy adoption and extensive afforestation to create carbon sinks.
The natural gas supply will fuel Vedanta’s upcoming 430-kilotonne-per-annum (KTPA) cast house, engineered to produce 250 KTPA of billets and 180 KTPA of other value-added aluminium products. To facilitate this, GAIL Gas Limited will lay a dedicated 7.5 km pipeline, supplying approximately 32,000 standard cubic meters (SCM) of natural gas daily over a five-year contract. This energy transition underscores Vedanta’s commitment to a sustainable future.
Emphasizing the significance of the partnership, Priya Agarwal Hebbar, Non-Executive Director at Vedanta and Chairperson of Hindustan Zinc Limited, said, “At Vedanta, sustainability is at the core of our operations. Transitioning to natural gas at Jharsuguda — the largest aluminium plant in the world — is a decisive step in aligning with India’s clean energy vision and our ESG goals. This collaboration with GAIL Gas reaffirms our dedication to reducing carbon emissions and creating a greener future for generations to come.”
Signing the agreement on behalf of the company, Vedanta Aluminium Chief Operating Officer, Sunil Gupta, said, “This partnership exemplifies our resolve to lead the aluminium industry in sustainable practices. By reducing emissions and enhancing production efficiencies, we aim to meet India’s growing demand for aluminium in critical sectors while championing cleaner energy solutions.”
The switch to natural gas as the primary fuel for the new cast house will result in a 62 per cent monthly reduction in carbon emissions — equivalent to approximately 3,941 tCO₂e. Vedanta Aluminium’s sustainability credentials are further bolstered by certifications from the Environmental Product Declaration (EPD) International, the Aluminium Stewardship Initiative (ASI), and the Bureau of Indian Standards (BIS). These recognitions affirm its industry-leading practices in energy efficiency, waste management, and overall environmental stewardship.
Producing over half of India’s aluminium — 2.37 million tonnes in FY24 — Vedanta Aluminium is a pivotal player in the nation’s industrial growth. Its advanced manufacturing processes and focus on value-added products have solidified its position as a global leader. Ranked first in the 2023 S&P Global Corporate Sustainability Assessment for the aluminium industry, the company continues to drive innovations in aluminium as the “Metal of the Future” for a sustainable tomorrow.
