Lloyds Metals Turns the Wind and Sun into Strategic Assets with Hexa SPV Stakes

Lloyds Metals & Energy Ltd has announced significant equity investments in two renewable energy special purpose vehicles (SPVs), marking a major step in its clean energy transition strategy. The company has subscribed to:

These investments reinforce Lloyds Metals’ commitment to sustainable operations and energy cost optimization.

 

Key Highlights

Dual SPV Investments: Lloyds Metals has acquired minority stakes in Hexa MH3 and Hexa W2, both part of a broader group captive renewable energy initiative in Maharashtra.

 

Project Details: The Hexa MH3 and W2 SPVs are developing a combined 28.2 MW renewable energy project, which includes 8.4 MW of wind and 19.8 MW of solar capacity.

 

Strategic Rationale: The move enables Lloyds Metals to secure a reliable supply of green power for its operations, with the company expected to consume up to 51% of the power generated annually from these projects.

 

Financial Structure: The total investment across both SPVs is ₹73 million, with the company’s board also approving corporate guarantees of up to $30 million to facilitate credit access for the projects.

 

Sustainability Push: These investments are part of Lloyds Metals’ larger plan to procure up to 100 MW of green power for captive use, aiming for significant cost savings and a reduced carbon footprint.

 

Operational Impact: The acquired SPVs will become step-down subsidiaries, further integrating renewable energy into Lloyds Metals’ supply chain.

 

Market Context

Lloyds Metals & Energy has been rapidly expanding its renewable energy portfolio, having recently commenced a 70,000 tonnes DRI plant and scaled iron ore mining capacity to 10 million tonnes per annum. The company’s share price has shown strong performance, reflecting investor confidence in its growth and sustainability initiatives.

 

“Lloyds Metals’ latest investments in Hexa MH3 and W2 underscore its commitment to green energy and operational efficiency, positioning it as a leader in sustainable metals production.”

 

Source: Reuters, TradingView, PowerLine, Mercom India