Ambuja Cements commits INR 6,000 crore to 1 GW of solar, wind power projects

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Ambuja Cements Ltd, the cement and building material company of the diversified Adani Group, has committed an investment of INR 6,000 crore ($722.48 million) to setting up 1 GW of renewable power projects. The company plans a diverse portfolio of solar and wind power projects strategically positioned across Gujarat and Rajasthan. The lineup includes a 600 MW solar power project and a 150 MW wind power project in Gujarat and a 250 MW solar power project in Rajasthan. This will be achieved by FY 2026 (200 MW by March 2024) in addition to the existing 84 MW of solar and wind power.

“The investment not only demonstrates our commitment to environmental sustainability but also promises compelling economic advantages to Ambuja’s planned larger capacity of 140 mtpa (metric tonnes per annum),” stated Ambuja Cements. “With a lower cost of generation from green power, the power cost will come down from INR 6.46/kWh to INR 5.16/kWh. A reduction of INR 1.30/kWh (20%), which translates into INR 90 pmt of cement for a targeted capacity of 140 mtpa by FY 2028, accelerating the company’s ESG targets. Additionally, green power will assist in enabling an increased supply of green cement, making it possible for the user industry (infrastructure and housing) to go green.”

Ambuja Cements is also enhancing its waste heat recovery systems (WHRS) capacity from the current 103 MW to 397 MW over five years, which will further reduce the power cost.

With these initiatives, Ambuja expects 60% of its planned 140 mtpa capacity to be powered with green power.

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