Ambuja Cements Ltd., under the ownership of billionaire Gautam Adani, has announced a commitment to invest 60 billion rupees ($723 million) in constructing 1,000 megawatts of renewable power projects. The move aligns with the Indian conglomerate's swift strides toward achieving its net-zero objectives. Acquired by the Adani Group from Holcim Ltd. last year, the Mumbai-based cement manufacturer disclosed that it intends to finance this investment through internal accruals, as stated in an exchange filing. Ambuja aims to elevate its usage of green energy to cover 60% of its planned annual capacity of 140 million tons, significantly surpassing the current utilization of 19%.
According to the disclosure, the initiatives encompass a 600 MW solar power installation and a 150 MW wind power facility in Gujarat, India, along with a 250 MW solar plant in Rajasthan by March 2026. This is an addition to Ambuja Cements' current green energy capacity of 84 MW. The aim is to decrease the cost of green energy generation by 20%, reducing it from 6.46 rupees per kilowatt-hour to 5.16 rupees per kWh. Additionally, this move is expected to boost the production of environmentally friendly cement.
Adani, the head of the expansive conglomerate and Asia's second-wealthiest individual, plans to invest $100 billion in the group's transition toward green energy over the next ten years. Five of the conglomerate's companies aspire to achieve net-zero emissions by 2050. Both Adani and fellow billionaire Mukesh Ambani, who initially built their wealth in fossil fuels, have emerged as advocates for renewable energy. Their support aligns with Indian Prime Minister Narendra Modi's ambition to decarbonize India and attain carbon neutrality by 2070. The statement released last week by the conglomerate affirmed that apart from Ambuja Cements, group entities like Adani Green Energy Ltd., Adani Energy Solutions Ltd., Adani Ports & Special Economic Zone Ltd., and ACC Ltd. have set a target to achieve carbon neutrality by 2050.