Ambuja Cements’ decision to invest Rs 6,000 crore follows the Gautam Adani-led conglomerate’s declaration of a $100 billion investment in a green energy transition over the next decade.
Ambuja Cements, the cement and building material company under the Adani Group, has announced a significant investment of Rs 6,000 crore in renewable power projects. The company aims to achieve a capacity of 1,000 MW, aspiring to establish itself as a global leader in sustainable cement production.
The investment will be allocated to a diversified portfolio, encompassing solar and wind power projects in Gujarat and Rajasthan. The plans include 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. Ambuja Cements aims to accomplish this by FY 2026, with 200 MW targeted by March 2024, in addition to the existing 84 MW of solar and wind power.
This initiative aligns with the broader green energy transition strategy announced by the Gautam Adani-led conglomerate, which involves a $100 billion investment over a decade. Ambuja Cements, along with other Adani portfolio businesses, is actively working towards achieving net-zero status by 2025 or earlier by adopting renewables and sustainable practices.
The investment is expected to yield economic benefits for Ambuja Cements, contributing to the planned larger capacity of 140 MPTA. With a lower cost of generation from green power, the company anticipates a reduction in power costs from Rs 6.46 per kWh to Rs 5.16 per kWh, translating to a 20% decrease and supporting the company’s environmental, social, and governance (ESG) targets.
Furthermore, the increased use of green power will facilitate a higher supply of green cement, promoting sustainability within the user industry. Ambuja Cements is also set to enhance its Waste Heat Recovery Systems (WRS) capacity from 103 MW to 397 MW over the next five years, contributing to a further reduction in power costs. Ajay Kapur, CEO of Cement Business, emphasized the transformative shift this investment represents in the cement industry, aligning with national objectives of decarbonization and a greener future.