Ambuja Cements has earmarked an investment of Rupees 6,000 crore for renewable power projects as the Adani Group firm targets a total 1,000 MW capacity across solar and wind power projects by FY26.
The company also plans to increase its Waste Heat Recovery Systems (WHRS) capacity to 376 MW by FY28. The investments would be made across a portfolio of solar and wind power projects in Gujarat and Rajasthan. These include a 600 MW solar power project and 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan, Ambuja Cements said in a statement.
“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-carbonisation and greener future and this helps us become competitive and sustainable,” Ajay Kapur, CEO, cement business, said.
“The adjacencies within the group will further catalyse benefit realisation. 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,” he added.
The lower cost of green power will reduce the firm’s power cost to Rupees 5.16 per kWh from the earlier Rupees 6.46 per kWh. A reduction of Rupees 1.30 per kWh (20%) translates to Rupees 90 per metric tonne of cement for targeted capacity of 140 MTPA by FY28.
Additionally, green power will help in increased supply of green cement, making it possible for the user industry (infrastructure and housing) to go green, it added.
Ambuja Cements is also increasing its WHRS capacity from the current 103 MW to 376 MW over the next five years. The firm intends to increase WHRS capacity to 134 MW by March 2024, to 195 MW by FY25 and then to 208 MW by FY26. These initiatives will help the firm use 60% of green power for its planned capacity of 140 MTPA from the current 19%.