Nalco to install 200-300 MW of renewable energy capacity with battery storage in Odisha

State-run National Aluminium Company Ltd (Nalco) is stepping up its expansion and sustainability initiatives in Odisha, focusing on securing raw materials and transitioning to cleaner energy sources to support long-term growth.

The public sector aluminium major is developing the Pottangi bauxite mines in Koraput district, with mining lease deeds already signed. Mining operations are expected to commence shortly, which will help ensure a steady supply of raw materials for the company’s alumina and aluminium production.

Nalco has also begun coal mining from the Utkal D and E blocks, a move aimed at reducing input costs and strengthening fuel security for its operations. In addition, the company is undertaking a brownfield expansion of its smelter with an additional capacity of 0.5 million tonnes per annum, further reinforcing its core aluminium manufacturing capabilities.

Focus on Renewable Energy

As part of its sustainability roadmap, Nalco plans to install between 200 and 300 MW of renewable energy capacity in Odisha, supported by battery storage systems. The renewable power will be used to meet the high energy requirements of its smelting operations.

Chairman-cum-Managing Director Brijendra Pratap Singh said that nearly 80 per cent of the company’s carbon emissions currently originate from coal-based captive power plants, making the shift to green energy a critical priority.

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He noted that power consumption accounts for nearly 35–40 per cent of aluminium production costs. While coal-based power costs around ₹3 to ₹3.5 per unit, renewable energy is currently priced higher at approximately ₹4.5 to ₹5 per unit. Nalco is therefore exploring power purchase agreements, developing its own renewable energy assets and engaging consultants to ensure access to reliable and affordable round-the-clock green power.

The company aims to balance cost efficiency with sustainability as it moves towards producing greener aluminium and aligning its operations with long-term environmental goals.