Thursday, July 25, 2024

Ambuja Cements Announces Rs 6,000 Crore Investment for 1,000 MW Renewable Energy Unit

Ambuja Cements, a company promoted by Adani, has revealed plans to invest Rs 6,000 crore in setting up a 1,000 megawatt (Mw) renewable power unit for captive consumption. The investment, which will be funded through internal accruals, is expected to be completed by the fiscal year 2025-26. The renewable power projects will include both solar and wind power installations in the states of Gujarat and Rajasthan.

The detailed breakdown of the investments includes a 600 Mw solar power project and a 150 Mw wind power project in Gujarat, as well as a 250 Mw solar project in Rajasthan. The company aims to have 200 Mw of this capacity operational by March of the next year, with the remaining capacity coming online by FY26.

One of the key advantages highlighted by Ambuja Cements is the economic benefit associated with the use of green power. The company expects the cost of generation to decrease from Rs 6.46 per kWh to Rs 5.16 per kWh, resulting in a reduction of Rs 1.30 per kWh (20 percent). This reduction is estimated to translate into a cost savings of Rs 90 per tonne of cement for the targeted production capacity of 140 million tonnes per annum (MTPA) by FY28.

Additionally, with this investment, Ambuja anticipates that green energy will contribute 60 percent of the energy requirements for its planned 140 MTPA unit, a significant increase from the current 19 percent.

The move towards green energy is not unique to Ambuja Cements, as its rival, UltraTech Cement, has also announced plans to increase the overall share of green energy in its total energy mix to 85 percent by 2030. The interim target is set at 60 percent by FY26, up from the current 22 percent. This reflects a broader trend in the industry towards sustainability and renewable energy adoption.

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