Ambuja Cements, an Indian construction materials manufacturer, has announced the investment of 6000 cr. rupees, equivalent to nearly $723 million, in renewable power projects. The company plans to fund this investment internally, focusing on solar and wind power initiatives in the states of Gujarat and Rajasthan. Ambuja Cements aims to achieve a total capacity of 1,000 megawatts (MW) through these projects, contributing to its existing capacity of 84 MW. The Adani Group-owned company stated that the expansion in green power capacity is expected to reach 60%, a significant increase from the current 19%.
By allocating substantial resources to renewable energy projects, the company aims to enhance its energy portfolio and reduce its carbon footprint. The shift towards cleaner energy sources aligns with global efforts to combat climate change and promote the use of sustainable resources. The investment will focus on expanding the company’s green power capacity to 1,000 megawatts (MW) through various projects, including a 600 MW solar power project, a 150 MW wind power project in Gujarat, and a 250 MW solar power project in Rajasthan. Ambuja Cements aims to achieve this substantial increase in capacity by the fiscal year 2026, with 200 MW targeted by March 2024, in addition to the existing 84 MW of solar and wind power.
To reduce environmental impact and embracing cleaner energy sources, Ambuja Cements plans to utilize 60% of green power in its total energy consumption. The lower cost of generation from green power is expected to result in a significant reduction in power costs, decreasing from ₹6.46 per kWh to ₹5.16 per kWh. This reduction of ₹1.30 per kWh, equivalent to a 20% decrease, is anticipated to translate into a cost savings of ₹90 per metric ton of cement by the fiscal year 2028.
As part of its broader vision for sustainability, Ambuja Cements is not only investing in renewable power projects but is also enhancing its Waste Heat Recovery Systems (WHRS) capacity. The current WHRS capacity of 103 MW is set to increase to 397 MW over the next five years, further contributing to the reduction of power costs. These initiatives align with Ambuja’s vision to achieve a leading share of green power among its industry peers, reaching 60% for the planned production capacity of 140 million tonnes per annum (MTPA), a significant increase from the current 19%.
Ambuja Cements, along with its subsidiary ACC Ltd and recently-acquired Sanghi Industries Ltd., collectively hold the production capacity of 74.6 MTPA. The company operates eighteen integrated cement manufacturing plants and fourteen cement grinding units across India. The strategic investment in renewable power projects reflects Ambuja’s mission to conduct sustainable practices to position itself as a key player in the broader initiative of national de-carbonization and a greener future.
Commenting on the strategic investment, Adani Group Cement Business CEO Ajay Kapur emphasized the company’s contribution to sustainable practices, “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.”
