Ambuja Cements leads renewable energy transition with Khavda solar project

Ambuja Cements Limited, a prominent name in the cement industry decarbonisation movement, has achieved a landmark milestone by commissioning its 200 MW solar power project in Khavda, Gujarat. The project, operational as of 12 December 2024, is the first phase of a broader renewable energy transition initiative led by the company. This ambitious green power project is part of a ₹10,000 crore investment aimed at transforming the company’s energy consumption patterns.

This solar power project is set to supply renewable energy to 20 cement plants, contributing to 70% savings in power costs. These solar power savings will not only enhance the company’s EBITDA but also reinforce its commitment to sustainability leadership initiatives.

Driving Sustainability Through Renewable Energy

The company’s renewable energy transition includes a total capacity of 1 GW, combining solar and wind power with innovative waste heat recovery systems (WHRS). With the initial 200 MW now operational, Ambuja Cements plans to commission the remaining 806 MW in phases. The expansion includes 156 MW of wind power from Khavda and an additional 300 MW of solar power from Rajasthan, both set to begin operations by March 2025. The final 350 MW of solar capacity will come online by June 2025.

Ajay Kapur, CEO of Adani Group’s Cement Business, highlighted how this green power project aligns with the group’s Environmental, Social, and Governance (ESG) principles. He reiterated the company’s pledge to achieve net-zero emissions by 2050, emphasising its role in shaping sustainability leadership initiatives within the cement sector.

Cement Industry Decarbonisation in Focus

Ambuja Cements’ green power project represents a critical step in cement industry decarbonisation. By leveraging renewable energy solutions, the company aims to achieve 60% of its energy requirements from green power sources by FY28. This commitment underscores its forward-thinking approach to sustainability and sets a benchmark for peers in the industry.

The Western Regional Load Dispatch Centre has cleared the 200 MW capacity for operation, marking the start of a transformative journey for Ambuja Cements. The integration of green power into its operations will generate substantial solar power savings while reducing environmental impact.

A Legacy of Sustainability

Ambuja Cements has long been a leader in sustainability. The company’s innovative strategies, such as using waste heat recovery systems and adopting renewable energy, reflect its dedication to creating a greener, more inclusive future. Its involvement with the Alliance for Industrial Decarbonization, facilitated by the International Renewable Energy Agency (IRENA), positions it as a pioneer in global efforts to decarbonise industries.

As part of its sustainability leadership initiatives, the company’s products have been listed in the GRIHA product catalogue, helping reduce carbon footprints for its customers. Furthermore, Ambuja Cements has consistently received accolades for its ESG efforts, including a ‘Leadership Score’ of A- from the Carbon Disclosure Project (CDP).

Renewable Energy Transition: Industry Implications

Ambuja Cements’ renewable energy transition not only aligns with its strategic goals but also signals a broader shift within the industry. With increasing regulatory and societal pressures to adopt sustainable practices, this project highlights the economic and environmental benefits of green power initiatives.

The substantial solar power savings achieved through this project exemplify how renewable energy investments can enhance financial performance while reducing carbon emissions. Ambuja Cements’ journey sets a clear example for the cement industry, proving that sustainability leadership initiatives are both achievable and essential.