Ambuja Cements will launch a 6,000 crore rupee green power plan to invest in renewable energy.
The leading cement brand made this declaration on 18th December. This information was provided in an exchange filing. Ambuja wants to become a top provider in the world for sustainable cement production.
Ambuja Cements deals in cement and building materials. It is owned by Adani Group.
Investment Plan of Ambuja Cements
Ambuja has stated that it is going to provide the funds for investing in renewable energy internally. This is the only announcement regarding the procedure of the investment that has been made public by the company.
The leading cement brand will work on investment projects of up to 1,000 megawatts. It will include renewable energy projects of solar and wind energy. These are mainly located in Indian states like Gujarat and Rajasthan.
Two solar power projects of a capacity of 600 megawatts in Gujarat and 250 megawatts in Rajasthan will be targeted. In addition, Ambuja will also work on wind energy projects of 150 megawatts in Gujarat. They will allocate the investment to a diverse portfolio. The projects of Ambuja are in Gujarat and Rajasthan in strategic locations.
The announcement of investing a huge amount of money in renewable energy is quite significant. The targets will be achieved by the financial year 2026. It is to be noted that the current capacity of the company is 84 megawatts.
How Ambuja Cements Will Reduce the Cost of Energy Production
The cost of producing energy from green sources like wind and solar power is less. At present, the cost of generating energy is 6.46 rupees per kWh. But after adopting green power, the cost will reduce to about 5.16 rupees per kWh. Thus, the cost will decrease by 1.30 rupees per kWh, which amounts to a reduction of twenty percent.
Ambuja is expanding its work and project portfolio both organically and inorganically. It wants to increase its production capacity to 40 million tonnes per annum. The company intends to use 60% green energy for power consumption. It will be able to produce cement worth Rs 90 PMT by the fiscal year 2028.
Other Projects of Ambuja Cements
The leading cement manufacturer is working on other types of projects also. It includes the project of Waste Heat Recovery Systems. Currently, Ambuja has a WHRS capacity of 103 megawatts that it intends to raise to 397 megawatts. This target will be achieved in five years. This project will decrease the cost of producing energy in addition to the wind and solar green energy projects.