Adani Cements plans green capacity expansion

The new capacity additions for Adani Cements would be only for manufacturing of green cement, as it looks to double the production of the commodity to about 140Mta by FY27-28. The two Adani Group cement companies, ACC and Ambuja Cements, would only add capacities through the organic route, which would be mainly funded through internal accruals.

Green cement is manufactured by reusing industrial wastes, such as slag and fly ash and energy efficiency modes, which reduces carbon emissions. India is the second-largest polluter from cement manufacturing with the country emitting 149Mt of CO₂ in 2021. 

“All the new plants of Adani Cements will have one of the lowest thermal energy consumptions, the most efficient cement millings, and they will use waste heat recovery systems (WHRS). Going forward, we will integrate renewable energy for manufacturing cement, as we continue to make blended cements,” a source close to the development said.

Apart from WHRS, the firms intend to put 200MW of solar power and would look at additional power from green sources. Nearly, 85 per cent of Adani’s production is blended cement, which means the companies use fly ash, slags or a mix of fly ash and slag, with only 15 per cent is ordinary Portland cement (OPC).

“The next 70m will be the most energy-efficient and cost-efficient, and these initiatives would also help us emerge as the one of the lowest cost cement producers in the world,” he added.

Adani Cements is also planning to double the number of grinding units to 70, which would help in reducing the average distance from mother plant. It also intends to set up captive rail systems that would help it reduce logistics costs. Further, the firms would also look at conserving water by reducing freshwater withdrawal and increasing the usage of recycled water.

Under its Environmental, Social and Governance (ESG) goals for 2030, ACC aims to bring down CO₂  emissions by 400kg/t from about 750-800kg earlier, and at 460kg now. It also intends to bring down CO₂  emissions for Ambuja Cements to 453kg/t of CO₂ emissions from the present 523kg.

In September last year, Adani Group had acquired Switzerland-based Holcim Group’s stake in Ambuja Cements and ACC for US$6.5bn in cash. Following the acquisition, the group announced plans to double cement production capacity to 140Mta by FY27-28 with an investment of INR460,000m (US$5561m).