Adani Group's key player in the cement and building materials industry, Ambuja Cements Limited, announced that it will be investing a whopping INR 6,000 crores in renewable power projects. The company targets to achieve 1,000 MW capacity by 2026.
The portfolio, the company said, would be diverse and includes a 250 MW solar power project in Rajasthan, a 600 MW solar power project in Gujarat, and a 150 MW wind power project in Gujarat.
As the company expects to achieve completion of these projects by 2026, 200 MW will be achieved by March 2024, in addition to the existing 84 MW of solar and wind power.
CEO of the Cement Business, Ajay Kapur, 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."
With lower cost of generation from green power, the power cost is expected to decrease from INR 6.46 per kWh to INR 5.16 per kWh. This would be a substantial reduction of INR 1.30 per kWh (20%). This reduction will then result in a cost saving of INR 90 per metric ton of cement by the year 2028.
To add to this, the use of green power will also contribute to the rise in the supply of green cement, which will enable a shift towards sustainability in the user industry, especially in infrastructure and housing.
With all necessary approvals in place, Ambuja Cement is geared up to not just meet but exceed its committed ESG targets well ahead of the initial timelines, the company added.