Siemens Gamesa and ArcelorMittal subsidiary in India strike major wind power deal on efforts to further decarbonize the Indian steel industry

Siemens Gamesa has signed a supply agreement with leading steel company ArcelorMittal’s subsidiary in India to supply 46 SG 3.6-145 wind turbines for a project totaling 166 MW in Andhra Pradesh. The clean electricity produced will be used by one of its steel plants, providing a much-needed boost to the industry’s decarbonization efforts in the country.  

The deal has been signed with AM Green Energy Private Limited (AMGEPL), a joint venture of ArcelorMittal S.A. and ArcelorMittal Nippon Steel India Limited (AM/NS India). The wind project will form part of a 989-MW wind-solar hybrid renewable energy project by AMGEPL in the Kurnool District of Andhra Pradesh. Large-scale renewable energy investments by the power-intensive steel industry will help reduce carbon emissions and drive a cleaner future.

The total power generated from the Kurnool wind farm will be used by the AM/NS India steel plant located at Hazira, in the state of Gujarat, and will enable AM/NS India to meet 20% of its electricity needs from renewable resources while helping to reduce its carbon emissions by 1.5 million tons each year.

“This partnership with the world’s second largest steel producer opens up a huge opportunity for the wind industry in India, especially for the power-intensive steel industry which is fast-tracking its efforts to meet carbon emissions goals. We are confident in delivering this landmark project that will help give fresh renewable momentum to the state of Andhra Pradesh,” said Navin Dewaji, CEO of the Asia Pacific region for Siemens Gamesa’s onshore business.

“Large amounts of clean energy are required to accelerate to net zero goals of corporations and countries, and we are happy to have embarked on this journey emphatically in India. Our partnership with Siemens Gamesa for this benchmark model project demonstrates how establishing partnerships and collaborating across the supply chain can help us progress faster toward our decarbonization targets,” said Amit Harlalka, Vice President, ArcelorMittal and CFO, AM/NS India.   

The supply of wind turbines to this project in Kurnool District will commence in the second quarter of calendar year 2023 and the turbines will be manufactured at Siemens Gamesa’s plants in India. The state of Andhra Pradesh in India, where the project is located, has significant potential for power generation through wind projects. This project is in line with Andhra Pradesh government’s Renewable Energy Export Policy 2020 for solar, wind and hybrid projects, which aims to promote the export of renewable energy outside the state.

Siemens Gamesa launched the onshore 3.X platform in 2020. With this new deal, order entry for the platform surpasses the 1.5 GW mark, underscoring its competitiveness in the Indian market. The company is also a member of the Steel Zero initiative, which has a clear commitment to sourcing increasing amounts of green steel responsibly going forward.

Siemens Gamesa has operated in India since 2009 and is currently the market leader with a 40% market share and an installed base of over 8 GW, according to consultancy Wood Mackenzie. The company has a blade factory in Nellore (Andhra Pradesh), a nacelle factory in Mamandur (Chennai, Tamil Nadu), and an operations and maintenance center in Red Hills (Chennai, Tamil Nadu).