Ambuja Cements, a part of Indian conglomerate Adani Group, has unveiled plans to invest INR60bn ($720m) in renewable power projects with a target of 1GW capacity.

The cement and building material company intends to build a varied portfolio of solar and wind power projects strategically located in the Indian states of Gujarat and Rajasthan. The move is expected to help the company power 60% of its production with clean electricity.

According to Ambuja Cements, the portfolio comprises a 600MW solar power project and a 150MW wind power project in Gujarat, along with a 250MW solar power project in Rajasthan.

The cement manufacturer is targeting to accomplish this by FY 2026, with 200MW scheduled for completion by March 2024, which will supplement its existing 84MW of solar and wind power capacity.

Ambuja Cements said that the investment not only underscores its dedication to environmental sustainability but also ensures compelling economic benefits for its planned larger capacity of 140 metric tonnes per annum (MPTA).

The company further stated that with a lower cost of generation from green power, the power cost is projected to decrease from INR6.46 ($0.078) per kWh to INR5.16 ($0.062) per kWh. This reduction of 20% equates to INR90 ($1.08) per metric ton of cement for the targeted capacity of 140MTPA by FY 2028.

Additionally, the adoption of green power will facilitate an increased supply of green cement, enabling the user industry to adopt environmentally friendly practices, said Ambuja Cements.

Ambuja Cements CEO Ajay Kapur said: “This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry.

“They align not only with our growth trajectory but also with the national objective of de-carbonisation and greener future and this helps us become competitive and sustainable. The adjacencies within the Group will further catalyse benefit realization.”

The Adani Group company also plans to boost its waste heat recovery systems (WHRS) capacity from the existing 103MW to 397MW over a span of five years, with 134MW targeted for completion by March 2024. This expansion aims to further decrease the power cost.

Earlier this month, Adani Group’s another subsidiary Adani Green Energy raised a $1.36bn construction facility for its 30GW hybrid renewable energy park at Khavda in Gujarat.