Ambuja Cements commits Rs. 6,000 crore for green power projects
What's the story
Ambuja Cements, part of the Adani Group, has revealed plans to invest a whopping Rs. 6,000 crore in renewable energy projects, aiming for a capacity of 1,000MW.
This investment will be spread across various solar and wind power projects in Gujarat and Rajasthan.
The lineup includes a 600MW solar and a 150MW wind project in Gujarat, as well as a 250MW solar project in Rajasthan, Ambuja Cements said in a regulatory filing.
Details
Green power initiatives to reduce costs and accelerate ESG targets
Ajay Kapur, CEO of Cement Business, explained that the cost of power generation from green energy will be significantly lower, dropping from Rs. 6.46 per kWh to Rs. 5.16/kWh.
This 20% reduction will save Rs. 90 PMT of cement for the targeted capacity of 140 MTPA by FY 2028.
Kapur added, "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."
What Next?
Enhancing waste heat recovery systems capacity
Ambuja Cements is also working on expanding its Waste Heat Recovery Systems (WHRS) capacity from the current 103MW to 397MW over the next five years (134MW by March 2024).
This will further decrease power costs and help the company achieve a 60% share of green power for its planned capacity of 140 MTPA, up from the current 19%.
At the time of writing, Ambuja Cements's shares were trading at Rs. 530.60 apiece on NSE, up by 1.57%.