Ambuja Cements to invest $723 million in green energy

Ambuja Cements has announced a substantial investment of 60 billion rupees ($723 million) to develop 1,000 MW (1-GW) of renewable power projects. The company, under the ownership and control of Gautam Adani, a key figure in the Adani Group, is swiftly advancing towards its net zero objectives.

Following its acquisition by the Adani Group from Holcim Ltd. last year, the Mumbai-based cement maker disclosed that it will finance this initiative through internal accruals, as indicated in a filing with the exchange on Monday. Ambuja Cements aims to utilize green energy for 60% of its planned annual capacity of 140 million tons, a significant increase from the current 19%.

The company outlined its commitment to investing in various green energy ventures, encompassing biofuels, solar, and wind power. Ambuja Cements emphasizes its proactive approach in sourcing renewables, electrifying operations, adopting biofuels, and implementing waste heat recovery and energy storage technologies to expedite the transition.

 The proposed projects of Ambuja Cements would include a 600 MW solar power plant and a 150 MW wind power plant in the western state of Gujarat, along with a 250 MW solar plant in neighboring Rajasthan, all scheduled for completion by March 2026. These additions will complement the existing 84 MW of green energy capacity in Ambuja Cements.

According to the filing, this investment is expected to reduce the cost of green energy generation by 20%, bringing it down from 6.46 rupees per kilowatt-hour to 5.16 rupees per kWh, while simultaneously increasing the supply of green cement.

Gautam Adani’s conglomerate, ranked as Asia’s second-richest entity, has outlined plans to invest $100 billion in its green energy transition over the next decade. Five of its affiliated firms, including Ambuja Cements, Adani Green Energy Ltd., Adani Energy Solutions Ltd., Adani Ports & Special Economic Zone Ltd., and ACC Ltd., have set a collective target to achieve carbon net zero by 2050, aligning with Prime Minister Narendra Modi’s mission to decarbonize India and achieve carbon neutrality by 2070.