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Global steel major ArcelorMittal's Indian subsidiary had inked an agreement with wind turbine major Siemens Gamesa to source wind turbines for its 166 MW project in Andhra Pradesh.

The clean electricity produced will be used by one of ArcelorMittal's steel plants in India, providing a much-needed boost to the industry's decarbonisation efforts in the country.

According to Siemens Gamesa, it has signed the deal to supply 46 SG 3.6-145 wind turbines to AM Green Energy Private Ltd (AMGEPL), a joint venture of ArcelorMittal S.A. and ArcelorMittal Nippon Steel India Ltd (AM/NS India).

The wind project will form part of a 989-MW wind-solar hybrid renewable energy project by AMGEPL in Kurnool district of Andhra, said Siemens Gamesa.

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 Gujarat, and will enable AM/NS India to meet 20 per cent 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 towards our decarbonisation targets," said Amit Harlalka, Vice President, ArcelorMittal and CFO, AM/NS India.

The supply of wind turbines to this project in Kurnool will commence in the second quarter of calendar year 2023 and the turbines will be manufactured at Siemens Gamesa's plants in India.

The company has a blade factory in Nellore (Andhra Pradesh), a nacelle factory in Mamandur (Chennai), and an operations and maintenance center in Red Hills (Chennai).

Siemens Gamesa has operated in India since 2009 and is currently the market leader with a 40 per cent market share and an installed base of over 8 GW, according to consultancy Wood Mackenzie.