Home-grown AMG Metals & Materials, a company backed by the promoters of renewable energy player Greenko, has signed an agreement with global mining giant Rio Tinto to jointly develop a low-carbon aluminium project in India with a potential production capacity of one million tonnes per annum.
The parties are exploring to support the project with wind and solar energy firmed by pumped hydro storage, the companies said in a joint statement.
The memorandum of understanding (MoU) aims to jointly assess the feasibility of developing up to a 1 million tonnes per annum (MTPA) primary aluminium smelter and 2 MTPA of alumina production.
As part of the agreement, a study will be conducted to evaluate the potential of 5 lakh tonnes per annum primary aluminium smelter in the first phase at a favourable location in India.
AMG M&M will examine a firmed renewable energy solution with Greenko, while Rio Tinto will explore a commercial alumina solution.
The study will also assess smelting technology options to determine the most cost-effective solution for the project.
Group President of AMG Metals & Materials and Greenko Mahesh Kolli said: "Over the last few years, we have been able to deliver a multitude of decarbonisation solutions comprising electricity, molecules, chemicals and fuels. We gear up to expand that further to the materials space. This MoU could deliver much needed low-carbon metal at scale to propel decarbonisation initiatives in global supply chains across auto, construction, consumer packaging and many more segments." Rio Tinto Aluminium Chief Executive Jérôme Pécresse said, "This study is an important step in our ambition to grow our global, low-carbon aluminium footprint while exploring new project delivery approaches and opportunities in emerging markets.
"Partnering with AMG Metals & Materials enables us to assess how we can develop low-cost responsible aluminium production powered by renewable energy," Pécresse said.
With its rapid economic growth and strategic position, India is a compelling location for this potential project and aligns with our long-term vision for a globally more diverse and resilient aluminium business, the chief executive said.
As per the joint statement, world's primary aluminium demand has reached 70 million tonnes. India is already the world's second biggest aluminium producer and third biggest consumer, with demand set to double over the next decade.
At present, India's aluminium market is around 5 MTPA.
AMG Metals & Materials is incorporated by Anil Chalamalasetty and Mahesh Kolli, the founders of Greenko Group, one of India's leading energy transition solutions providers, and AM Green, a global decarbonisation solution provider.
Greenko has a near-term operational renewable energy capacity of 10 GW across solar, wind and hydro and is building 100 GWh of single cycle storage capacity across India.
AM Green is developing low-carbon ammonia projects across multiple locations in India with a goal to reach 5 MTPA of green ammonia capacity by 2030.
