Meghmani Finechem Forays into RE; Forms SPV with Renew Green Energy to Set Up 18.34 MW Hybrid Project

In a bid to enter into the renewable energy (RE) space, Chlor-Alkali and its value-added derivatives manufacturer Meghmani Finechem Ltd (MFL) has entered into an agreement with Renew Green Energy Solutions Pvt Ltd for setting up an 18.34 MW capacity of wind-solar hybrid power project in Gujarat.
 
In this regard, the company has formed a Special Purpose Vehicle (SPV) with Renew Green Energy Solutions Pvt Ltd and has executed an Energy Subscription Agreement (ESA) and Share Subscription and Shareholder Agreement (SSSHA).
 
In the newly formed SPV, MFL will hold 26 per cent stake for a contribution of Rs 20.54 crore and ReNew Green Energy Solutions will contribute Rs 58.46 crore for a 74 per cent stake.
 
Commenting on the development, Maulik Patel, Chairman and Managing Director of MFL, said, “At Meghmani Finechem, our team is focused on protecting the environment by using the best and latest technology. We endeavour to further strengthen our position in protecting the environment by getting into green energy (wind-solar hybrid power plant).”

He further added, “the hybrid power plant will help us to meet our additional electricity demand and will also allow us to produce green hydrogen, supporting the Government of India’s initiative of green energy and green hydrogen.”

Moreover, the plant is expected to be commissioned in Q3 of FY23.

As per the deal, the power generated from the plant will be supplied exclusively to MFL under the captive status for 25 years. The move will help MFL meet the energy requirement of its existing and future projects. Also, the cost per unit of electricity through this hybrid power plant will be lower than the power procured from the electricity grid.