Ambuja Cements Aims to Fuel 60% of Production Using Renewable Green Power

Investment of Rs. 6,000 Crores for 1,000 MW of Renewable Power

Ambuja Cements Limited, a key player in the cement and building materials industry within the Adani Group, is embarking on a groundbreaking journey towards sustainable cement production. The company is committing a substantial investment of Rs. 6,000 crores in renewable power projects, targeting a capacity of 1,000 MW.

This transformative investment covers a diverse portfolio of solar and wind power projects strategically positioned in Gujarat and Rajasthan. The portfolio includes 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 aims to achieve this by FY 2026, with 200 MW expected by March 2024, in addition to the existing 84 MW of Solar and wind Power.

The investment not only underscores Ambuja’s dedication to environmental sustainability but also promises significant economic benefits for its planned larger capacity of 140 MPTA. By leveraging the lower cost of generation from green power, the power cost is projected to decrease from Rs. 6.46 per kWh to Rs. 5.16 per kWh, translating to a substantial reduction of Rs. 1.30 per kWh (20%). This reduction is expected to result in a cost saving of Rs. 90 per metric ton of cement by FY 2028, aligning with the company’s ESG targets. Furthermore, the use of green power will contribute to an increased supply of green cement, fostering a shift towards sustainability in the user industry, especially in infrastructure and housing.

Ambuja Cements is also intensifying its Waste Heat Recovery Systems (WHRS) capacity from the current 103 MW to 397 MW over 5 years, with 134 MW expected by March 2024. These initiatives are integral components of a broader vision that positions Ambuja to achieve a leading share of Green Power among its peers, reaching 60% for the planned capacity of 140 MTPA, a significant increase from the current 19%.

Mr. Ajay Kapur, CEO of the Cement Business, emphasized, “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.” He highlighted that these initiatives align with both the company’s growth trajectory and the national objective of decarbonization and a greener future, making Ambuja competitive and sustainable. With all necessary approvals in place, the company is on an accelerated path to not just meet but exceed its committed ESG targets well ahead of initial timelines.

With this monumental leap, Ambuja has firmly established itself as a trailblazer in the cement industry, paving the way for a more sustainable future.