Indian steel and iron ore producer Lloyds Metals and Energy Limited (LMEL) has inked a pact with Hexa Climate to source 28.1 MW of hybrid clean energy for its iron ore mining operations and proposed steel mill project in the western state of Maharashtra, company sources said on Thursday, June 5.
The company said that, to ensure supplies of solar and wind power, LMEL will acquire a 26 percent equity stake each in special purpose vehicles (SPVs) Hexa Energy MH3 and Hexa Energy W2, entailing investments of $1.17 million and $1.14 million, respectively.
The process of acquisition is expected to be completed by the end of this month.
The wind-solar project include an 8.4 MW generating wind power project and a 19.8 MW generating solar power unit.
LMEL will be guaranteed a supply of 51 percent of the output of the wind-solar units, the company said.