UltraTech Cement, a flagship company of the Aditya Birla Group, has announced a strategic move to source renewable energy from CleanMax’s special-purpose vehicle (SPV), CleanMax Sapphire. The company has entered into energy supply, share subscription, and shareholders agreements with CleanMax to acquire a 26% equity share, investing up to ₹457.6 million (~$5.3 million). This partnership will enable UltraTech Cement to meet its green energy needs through a 55 MW wind-solar hybrid project in Honawad, Vijayapur district, Karnataka.
The wind-solar hybrid power plant, set to be developed on a captive basis, will exclusively supply electricity to UltraTech Cement’s operations. The share acquisition is expected to be completed within 180 days, aligning with UltraTech’s commitment to reduce its carbon footprint and comply with India’s regulatory requirements on captive power consumption. In its regulatory filing, UltraTech highlighted that the move is part of its broader strategy to optimize energy costs and fulfill its sustainability goals. In its 2023 Annual Report, UltraTech Cement disclosed that renewable energy made up 19.27% (or 650 MW) of its total energy consumption. The company has been steadily increasing its renewable energy capacity, having added 76 MW in 2023, bringing its total renewable power capacity to 345 MW.
UltraTech has set ambitious targets to achieve 100% renewable electricity usage by 2050. Notably, its Ratnagiri cement grinding unit in Maharashtra has already transitioned to 100% renewable energy, marking a significant milestone in the company’s green energy journey. Additionally, UltraTech has invested in 345 MW of solar and wind projects across India to support its energy needs. In a further push toward sustainability, UltraTech Cement also announced that it would procure an additional 7 MW of wind-solar hybrid power from Continuum MP Windfarm, raising its total wind-solar procurement to 21 MW by October 2024.
The shift to renewable energy is critical for industries like cement, which are among the hardest to decarbonize. According to the World Economic Forum, the global cement sector was responsible for 8% of global CO2 emissions in 2022, underlining the importance of sustainable practices within the industry. UltraTech Cement is part of the Climate Group’s RE100 initiative, reaffirming its commitment to sourcing 100% of its electricity from renewable sources by 2050. As per ICRA, green power will make up 40-42% of the total energy mix for major cement companies in India by March 2025, a notable increase from 35% in March 2023.
