In a significant move towards renewable energy, Vedanta’s aluminium business will no longer expand its coal-fired capacity, according to CEO John Slaven. Vedanta Aluminium, the largest aluminium producer in India, aims to increase its renewable energy usage to 30% by 2030, up from nearly 5% currently.
The company presently operates 4.8 gigawatts of coal-based power generation capacity. To achieve its renewable energy goals, Vedanta Aluminium is securing supplies of 1.3 GW of renewable energy, including a mix of solar and wind power, from India’s Serentica Renewables.
India, the world’s third-largest greenhouse gas emitter, relies heavily on coal, which accounts for nearly 50% of its 443 GW installed power capacity. Despite efforts to reduce greenhouse gas emissions and increase the share of non-fossil fuels in electricity generation, the Indian government has defended coal usage due to the country’s growing energy needs.
However, Vedanta Aluminium, a part of London-headquartered Vedanta Resources led by billionaire Anil Agarwal, is shifting its focus to renewables for its energy-intensive aluminium business. “We don’t want to add additional thermal power. We have got to really increase our renewables, so that’s the focus,” Slaven stated.
Other aluminium producers in India are adopting similar strategies. Hindalco Industries, the second-largest aluminium maker in India, plans to rely primarily on renewable power for new capacity additions at its smelters.
Vedanta Aluminium plans to raise its production capacity to meet India’s strong demand for aluminium, driven by rapid economic growth. This growth is expected to make the domestic market more attractive than Vedanta’s top export destinations, including Southeast Asia, Japan, North America, and South America.
Slaven noted that industries such as construction, electrical transmission, wind and solar power, and automobiles would keep demand robust. Vedanta Aluminium aims to increase its production capacity to 3 million metric tons by 2026, up from about 2.4 million tons currently. Similarly, smelting capacity is expected to rise to 3 million tons from 2.4 million tons, and refining capacity to 6 million tons from 2 million tons by 2026.
The company also anticipates receiving environmental clearances for its first wholly-owned bauxite mine in eastern India this year, which will support its capacity expansion plans. Vedanta Aluminium relies on local and imported bauxite to produce alumina, the feedstock for aluminium.
By shifting towards renewable energy and expanding its production capacities, Vedanta Aluminium is positioning itself to meet the growing demand for aluminium while reducing its carbon footprint. 
