Hero’s clean energy arm to invest Rs 20k cr in Davangere

Bengaluru: Karnataka will get a first-of-its-kind manufacturing plant where carbon from industrial smoke will be used to produce e-methanol, a synthetic fuel that can drive the state’s clean energy growth.

Hero Future Energies, the renewable energy arm of Hero Group, will set up its e-methanol plant in Harihar at Davangere, a project estimated to cost about Rs 20,000 crore.

Hero Future Energies chairperson and managing director Rahul Munjal discussed the project with Chief Minister Siddaramaiah. 

Munjal sought government support and "the same was assured", CM's Additional Chief Secretary LK Atheeq told DH. Atheeq added that this could be India's first such project.

"This (plant) will capture carbon from smoke emitted by industry, combine it with hydrogen and manufacture e-methanol, which is used as a green fuel," Atheeq explained, adding that the process requires water to "ionise and obtain" hydrogen. 

The proposed e-methanol plant plans to use emissions from the Viscose Staple Fibre manufacturing unit of Grasim Industries, the flagship company of the Aditya Birla Group. Grasim's Harihar unit was the first manufacturing plant in India to use indigenous wood resources with in-house technology.

There were several other investments and MoUs announced at Invest Karnataka on Wednesday. One of the biggest commitments came from Epsilon Group, for Rs 15,350 crore over the next decade in developing a manufacturing and research facility for EV battery testing and advanced materials in Karnataka.

American semiconductor manufacturing firm Lam Research elaborated on its investment of Rs 10,000 crore in the state over the next few years. Lam Research signed an MoU with the state government to earmark a land parcel owned by the Karnataka Industrial Areas Development Board (KIADB) for the planned investment.

In addition to Lam, several other international companies showed interest in the state. 

From Japan, Karnataka saw commitments by 15 companies committing investments and MoUs amounting to Rs 7,500 crore. The commitments span sectors including automobile manufacturing, industrial automation, and advanced technology. 

TVS Motor Company also detailed its investment of Rs 2,000 crore in Karnataka over the next five years, announcing a Global Capability Centre in Karnataka and the expansion of its production and engineering capabilities in Mysuru. 

Nirani Sugars also committed Rs 2,000 crore for a polylactic acid manufacturing facility in Bagalkot. It will be developed over the next three to five years generating 600–800 direct employment opportunities in the region.