Cement companies' green power mix likely to rise to 42 pc

20 Sep 2023 CW Team

Cement companies are poised to significantly increase their utilization of green power sources, with expectations of a rise to 40-42% by FY25, up from the current 35% in FY23. This transition towards greener energy solutions is projected to result in substantial cost savings of 140-160 basis points through reduced energy expenditures, as stated in a report released on Monday.

Leading cement manufacturers are committed to reducing their emissions by 15-17% over the next 8-10 years. They aim to achieve this by increasing the proportion of blended cement, which utilizes less clinker and, consequently, requires less fuel. The report, conducted by Icra Ratings, underscores that this shift towards blended cement will facilitate an increase in the adoption of green power sources, including solar, wind, and Waste Heat Recovery Systems (WHRS).

Additionally, the report notes a growing inclination within the industry to transition to alternative fuels. Icra Ratings estimates that green power will constitute 40-42% of the overall power mix for cement companies by March 2025, a notable increase from the approximately 35% recorded in March 2023. This shift towards sustainability and greener energy practices aligns with broader efforts to reduce environmental impact within the cement sector.

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