December 18th, 2023: With plans to enter into sustainable cement production, Ambuja Cements, the cement and building material company of Adani Group, has committed an investment of Rs 6,000 crore in renewable power projects, targeting a capacity of 1,000 MW, according to an official release.
This investment encompasses a diverse portfolio of solar and wind power projects strategically positioned across Gujarat and Rajasthan. The lineup includes a 600 MW Solar Power project and 150 MW Wind Power project in Gujarat and a 250 MW Solar Power project in Rajasthan. This will be achieved by FY 2026 (200 MW by March’24) in addition to the existing 84 MW of Solar & Wind Power.
According to the company release, with lower cost of generation from green power, the power cost will come down from Rs 6.46 per kWh to Rs 5.16 per kWh. A reduction of Rs 1.30 per kWh (20%), which translates into Rs 90 PMT of cement for targeted capacity of 140 MTPA by FY 2028, accelerating the Company’s ESG targets. Additionally, green power will assist in enabling an increased supply of green cement, making it possible for the user industry (infrastructure and housing) to go green.
Ambuja Cements is working on improving its Waste Heat Recovery Systems (WHRS) capacity from the current 103 MW to 397 MW over the period of five years (134 MW by March’24), which will further reduce the power cost. These initiatives are a pivotal part of a broader vision which will help Ambuja achieve the leading share of Green Power amongst its peers, reaching 60% for the planned capacity of 140 MTPA from the current 19%.
Ajay Kapur, CEO, Cement Business, said, “This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry. They align not only with our growth trajectory but also with the national objective of de-carbonization and greener future and this helps us become competitive and sustainable. The adjacencies within the Group will further catalyze benefit realization. With all requisite approvals in place, we are on an accelerated path to not just meet but exceed our committed ESG targets well before our initial timelines.”
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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