Meghmani Finechem Ltd (MFL) announced on Saturday that it has signed agreements with Renew Green Energy Solutions to establish a wind-solar hybrid power project in Gujarat.

According to a company statement, the collaboration marks MFL’s entry into the renewable energy space and demonstrates the company’s unwavering commitment to promoting green energy and reducing its carbon footprint.

MFL is a market leader in the production of chlor-alkali and its value-added derivatives.

It has signed an Energy Subscription Agreement as well as a Shares Subscription and Shareholder Agreement (SSSHA) with Renew Green to establish an 18.34 MW wind-solar hybrid power plant in Gujarat through a Special Purpose Vehicle (SPV) MFL will contribute Rs 20.54 crore for a 26 percent stake in the SPV, while Renew Green will contribute Rs 58.46 crore for a 74% stake.

This hybrid power plant is scheduled to open in the December quarter of 2022-23. The power generated by the plant will be supplied exclusively to MFL under the captive status for a period of 25 years, according to the terms of the agreements.