Ambuja Cements plans to use green power for 60% of its production and would invest Rs 6,000 Cr on 1,000 MW of Renewably Sourced Energy

18 Dec 2023 , 12:26 PM

The diversified Adani Group company Ambuja Cements Limited, which specialises in cement and building materials, stated on Monday that it will be investing Rs 6,000 crores in renewable energy projects. The company announced through an exchange filing that it intends to create 1,000 MW of projects in this sector.

This game-changing venture consists of a wide range of wind and solar power plants that are thoughtfully placed throughout Gujarat and Rajasthan.

A 250 MW solar power project in Rajasthan, a 150 MW wind power project in Gujarat, and a 600 MW solar power project are on the schedule. This will be accomplished by FY 2026 (200 MW by March 24) in addition to the current Solar and Wind Power capacity of 84 MW.

The investment shows our dedication to environmental sustainability and offers strong financial benefits for Ambuja’s intended 140 MPTA capacity expansion. The cost of power will decrease from Rs. 6.46 per kWh to Rs. 5.16 per kWh due to the decreased cost of producing green power. An acceleration of the Company’s ESG targets is possible with a reduction of Rs. 1.30 per kWh (20%), or Rs. 90 PMT of cement for the anticipated capacity of 140 MTPA by FY 2028. Green power will also help to provide a greater supply of green cement, which will enable the greening of the user industries (housing and infrastructure).

In order to further lower power costs, Ambuja Cements is also increasing the capacity of its Waste Heat Recovery Systems (WHRS) from the present 103 MW to 397 MW over the course of five years (134 MW by March 24). According to the regulatory filing, these measures are a crucial component of a larger plan that will assist Ambuja in becoming the company with the highest percentage of green power among its competitors, rising from the present 19% to 60% for the targeted capacity of 140 MTPA.

‘Our unwavering dedication to sustainable practices is reaffirmed by this important investment. Not only do we want to significantly boost the capacity of green power, but we also want to lay the groundwork for a revolution in the cement sector. They help us become sustainable and competitive by matching not only with our growth trajectory but also with the national goal of decarbonisation and a greener future. The Group’s adjacencies will aid in accelerating the realisation of benefits. We are moving quickly to surpass our promised ESG targets, well ahead of our original timetables, now that we have all necessary clearances in place, according to Ajay Kapur, CEO of Cement Business.

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