Adani Group-owned Ambuja Cement said it would invest Rs 6,000 crore in renewable power projects across several states, to achieve a capacity of 1,000 MW as part of its ambition to become a global leader in sustainable cement production.
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The investment plan includes a diverse portfolio of solar and wind power projects located in Gujarat and Rajasthan. Ambuja Cements plans to develop a 600 MW solar power project, a 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan.
The targeted completion for these projects is by FY 2026, with 200 MW expected to be operational by March 2024. This initiative is in addition to the existing 84 MW of solar and wind power that the company currently utilises.
“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 2024) in addition to the existing 84 MW of solar and wind power,” said Ambuja Cements in a press release.
Shares of the company jumped nearly 1.4 per cent after the announcement.
Green energy plans
Gautam Adani-led Adani Group has already announced a $100 billion investment in green energy transition over the next decade.
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Ambuja Cements is among the five Adani portfolio businesses, including Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, and ACC, striving to achieve net-zero status by 2025 or earlier.
These companies are actively adopting renewable energy sources, electrifying operations, and embracing biofuels.
Ambuja Cements anticipates economic benefits from this investment, particularly in reducing the power cost for its planned larger capacity of 140 MPTA (Million Tons Per Annum).
With a shift to green power, the cost of generation is expected to decrease from Rs 6.46 per kWh to Rs 5.16 per kWh, resulting in a significant 20 per cent reduction of Rs 1.30 per kWh.
This translates into Rs 90 per metric ton of cement for the targeted capacity of 140 MTPA by FY 2028, aligning with the company’s environmental, social, and governance (ESG) targets.
The increased supply of green cement facilitated by the adoption of green power aligns with Ambuja Cements’ goal to fostering a sustainable and competitive industry.
Ajay Kapur, CEO of Cement Business, highlighted that the investments signify not just an increase in green power capacity but a transformative shift in the cement industry, aligning with “national objectives for decarbonization and a greener future”.
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The company also plans to enhance its Waste Heat Recovery Systems (WRS) capacity from the current 103 MW to 397 MW over five years, further contributing to a reduction in power costs.
