Cement Industry invests Rs 5,500 cr in Green Power for 537MW capacity boost

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Cement Industry invests Rs 5,500 cr in Green Power for 537MW capacity boost

Cement Industry invests Rs 5,500 cr in Green Power for 537MW capacity boost

Industry News
Sep 20,23

Major cement companies are planning to invest approximately Rs 5,500 crore in green power initiatives, encompassing the addition of 537 MW in renewable energy capacity, including solar and Waste Heat Recovery System (WHRS), over the next two years, as reported by the research and rating agency ICRA.

These calculations are based on an estimated installation cost per MW of Rs 12-13 crore for WHRS and Rs 4-4.5 crore for solar installations.

Anupama Reddy, Vice President and Co-group Head at ICRA, emphasised that these investments are expected to yield annual savings of Rs 2,000 crore in power costs for these cement companies once their green power capacities become fully operational.

Furthermore, projections indicate that renewable energy will constitute 40-42% of the total power mix for cement companies by March 2025, compared to the 35% recorded in March 2023.

In an effort to reduce emissions by 15-17% over the next 8-10 years, major cement players in the country are increasing their utilisation of blended cement, which incorporates less clinker and therefore requires less fuel. They are also expanding their adoption of green power sources, including solar, wind, and WHRS capacities.

It's worth noting that the cement industry is known for its high energy consumption and ranks among the largest consumers of coal, second only to industries such as iron, steel, and thermal power. Traditionally, cement plants have sourced electricity from the state grid and operated coal-based captive thermal power plants. Additionally, the clinkerisation process in cement production involves substantial coal usage, contributing to greenhouse gas emissions and environmental impact.

Source: ETEnergyworld