Ambuja Cements has committed a groundbreaking investment of ₹6,000 crore in renewable power projects. The ambitious initiative aims to achieve a total capacity of 1,000 MW, reinforcing Ambuja Cements’ commitment to sustainable and eco-friendly business practices.
The diversified portfolio of solar and wind power projects will be strategically located in Gujarat and Rajasthan, contributing to the nation’s green energy goals. Ambuja Cements disclosed the details of its renewable power line-up in a regulatory filing on Monday, outlining a 600 MW Solar Power project and a 150 MW Wind Power project in Gujarat, along with a 250 MW Solar Power project in Rajasthan. The company is determined to accomplish this significant milestone by FY 2026, with an interim target of 200 MW by March 2024, in addition to the existing 84 MW of solar and wind power.
Notably, this investment is expected to result in a substantial reduction in the cost of power generation. The power cost is anticipated to decrease from ₹6.46 per kWh to ₹5.16 per kWh, marking a noteworthy 20% reduction of ₹1.30 per kWh. This translates into a cost saving of ₹90 per metric ton of cement for the targeted capacity of 140 million metric tons per annum (MTPA) by FY 2028, aligning with Ambuja Cements’ environmental, social, and governance (ESG) targets.
Ajay Kapur, CEO of the Cement Business within the Adani Group, expressed enthusiasm about the accelerated path towards exceeding the committed ESG targets. ‘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,’ said Kapur.
In addition to the renewable power projects, Ambuja Cements is intensifying its commitment to sustainability by enhancing its Waste Heat Recovery Systems (WHRS) capacity. The current capacity of 103 MW will be increased to an impressive 397 MW over the next five years, with a target of 134 MW by March 2024. This strategic move is expected to further reduce the power cost for the company.
These initiatives collectively aim to elevate Ambuja Cements’ share of Green Power to 60% for the planned capacity of 140 MTPA, a significant leap from the current 19%. The company is steadfast in its dedication to environmental responsibility and sustainable business practices, contributing to India’s renewable energy goals.
