India's Ambuja Cements to Invest $722 Million in Clean Energy
Tuesday, 19 December 2023, 15:03 IST
Ambuja Cements, an Indian cement and building material manufacturer affiliated with the Adani Group, has announced a significant investment of Rs60 billion ($722 million) in clean energy initiatives. The company's goal is to achieve 1 gigawatt (GW) of renewable energy capacity by developing solar and wind energy projects in the states of Gujarat and Rajasthan. In Gujarat, Ambuja Cements is targeting 600 megawatts (MW) of clean energy from solar facilities and 150 MW from wind energy projects.
In Rajasthan, it is targeting 250MW of capacity from solar power projects. The company plans to achieve 200MW by March 2024 and the full target by 2026, in addition to its existing 84MW of solar and wind power. Ambuja Cements stated in its exchange filing: “With the lower cost of generation from green power, our power cost will come down from Rs6.46 per kilowatt hour (kWh) to Rs5.16/kWh. A reduction of Rs1.30/kWh (20%) translates into Rs90 per metric ton of cement by the financial year 2028.”
The commitment to invest in renewable energy aligns with the company's Environmental, Social, and Governance (ESG) targets. Ajay Kapur, CEO of the cement business under the Adani Group, emphasized that this strategic investment underscores their unwavering dedication to sustainable practices. The goal is not only to significantly expand green power capacity but also to pave the way for a transformative shift in the cement industry.
“They align not only with our growth trajectory but also with the national objective of decarbonization and a greener future, and this helps us become competitive and sustainable. 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". Ambuja Cements is set to enhance its waste heat recovery systems capacity from the existing 103 megawatts (MW) to 397 MW by the year 2028. Additionally, in May 2022, the Adani Group disclosed plans to invest Rs600 billion in two green energy projects located in the Indian state of Andhra Pradesh.
In Rajasthan, it is targeting 250MW of capacity from solar power projects. The company plans to achieve 200MW by March 2024 and the full target by 2026, in addition to its existing 84MW of solar and wind power. Ambuja Cements stated in its exchange filing: “With the lower cost of generation from green power, our power cost will come down from Rs6.46 per kilowatt hour (kWh) to Rs5.16/kWh. A reduction of Rs1.30/kWh (20%) translates into Rs90 per metric ton of cement by the financial year 2028.”
The commitment to invest in renewable energy aligns with the company's Environmental, Social, and Governance (ESG) targets. Ajay Kapur, CEO of the cement business under the Adani Group, emphasized that this strategic investment underscores their unwavering dedication to sustainable practices. The goal is not only to significantly expand green power capacity but also to pave the way for a transformative shift in the cement industry.
“They align not only with our growth trajectory but also with the national objective of decarbonization and a greener future, and this helps us become competitive and sustainable. 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". Ambuja Cements is set to enhance its waste heat recovery systems capacity from the existing 103 megawatts (MW) to 397 MW by the year 2028. Additionally, in May 2022, the Adani Group disclosed plans to invest Rs600 billion in two green energy projects located in the Indian state of Andhra Pradesh.
