Vedanta Aluminium signs pact with GAIL for supply of natural gas

New Delhi: Vedanta Aluminium on Wednesday said it has entered into a pact with state-owned gas utility GAIL (India) Ltd for supply of natural gas to its smelter at Jharsuguda in Odisha. The country's leading aluminium producer has entered into gas sales agreement with GAIL Gas Ltd, a subsidiary of GAIL (India) Ltd.

This transition to natural gas, likely to be operational by the end of next year, will lower the carbon footprint, reduce emissions by an estimated 47,292 tonnes of CO2 equivalent annually, Vedanta Aluminium said in a statement.

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Vedanta is committed to achieving net zero emissions by 2050, by implementing a dual strategy that includes increasing renewable energy usage while also creating carbon sinks through afforestation efforts, it said.

"Our partnership with GAIL Gas Ltd is a testament to our commitment to reducing carbon emissions and embracing cleaner energy solutions," Priya Agarwal Hebbar, Non-executive Director at Vedanta and Chairperson of Hindustan Zinc Ltd, said.

GAIL Gas Ltd will set up a 7.5-km pipeline to supply approximately 32,000 standard cubic metres of natural gas per day, with a five-year contract term starting upon pipeline commissioning. This cleaner energy alternative is expected to help Vedanta Aluminium's commitment to a clean energy transition across its operations.

"This agreement is in line with our efforts to reduce carbon emissions and enhance our production capabilities, contributing to India's growing demand for aluminium in critical sectors," Sunil Gupta, Chief Operating Officer, Vedanta Aluminium said.

Vedanta Aluminium produced 2.37 million tonnes of aluminium in FY24.

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