Dalmia Cement increases its share of green fuel to 12%
Cement

Dalmia Cement increases its share of green fuel to 12%

Dalmia Cement Limited has turned to using biomass and industrial waste to protect itself from the fuel price hike.

The company is planning to raise Rs 10,000 crore for capital expenditure between FY22 and FY24 after achieving a negligible debt stage.

Managing Director and Chief Executive of Dalmia Cement, Mahendra Singhi, said that the company had increased its share of green fuel, which includes biomass and industrial wastes in total fuel consumption by 12%, and plans to increase it to 20% within one year. The plan is to gradually eliminate the use of fossil fuels.

The green fuel comes from industrial wastes such as chemical, pharma and automobile units through pyro-processing to reduce dependence on coal. Singhi said that the overall cost of green fuel is about 60% lower than fossil fuels.

Despite the coal price hike, the company managed the September quarter better than the previous quarter. Shifting to green fuel will keep high input costs under control. The earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dalmia Cement dropped to 11% to Rs 621 crore during the September quarter, compared to the same period last year.

He said that the existing clinker facility and adoption of new technology in the plant resulted in a drop in power consumption. The cement power consumption was 67 kWh per tonne of cement, which has been reduced to 62 kWh.

He said that the company expects increased rural housing demand post-Covid-19. The upcoming elections may result in infrastructure demand beyond the Covid-19 levels. The company plans to increase its CAPEX to 48.5 million tonnes from 36 million tonnes.

Image Source

Also read: Dalmia Cement plans 2 mt cement plant in Bokaro at Rs 577 cr

Dalmia Cement Limited has turned to using biomass and industrial waste to protect itself from the fuel price hike. The company is planning to raise Rs 10,000 crore for capital expenditure between FY22 and FY24 after achieving a negligible debt stage. Managing Director and Chief Executive of Dalmia Cement, Mahendra Singhi, said that the company had increased its share of green fuel, which includes biomass and industrial wastes in total fuel consumption by 12%, and plans to increase it to 20% within one year. The plan is to gradually eliminate the use of fossil fuels. The green fuel comes from industrial wastes such as chemical, pharma and automobile units through pyro-processing to reduce dependence on coal. Singhi said that the overall cost of green fuel is about 60% lower than fossil fuels. Despite the coal price hike, the company managed the September quarter better than the previous quarter. Shifting to green fuel will keep high input costs under control. The earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dalmia Cement dropped to 11% to Rs 621 crore during the September quarter, compared to the same period last year. He said that the existing clinker facility and adoption of new technology in the plant resulted in a drop in power consumption. The cement power consumption was 67 kWh per tonne of cement, which has been reduced to 62 kWh. He said that the company expects increased rural housing demand post-Covid-19. The upcoming elections may result in infrastructure demand beyond the Covid-19 levels. The company plans to increase its CAPEX to 48.5 million tonnes from 36 million tonnes. Image Source Also read: Dalmia Cement plans 2 mt cement plant in Bokaro at Rs 577 cr

Next Story
Infrastructure Energy

Mizoram To Build Rs 139 Billion Pumped Storage Power Plant

Mizoram Chief Minister Lalduhoma on Friday announced plans to construct a 2,400 MW pumped storage hydroelectric power plant in Hnahthial district, marking a major step towards achieving energy self-sufficiency in the state. Addressing the Mizo Students’ Union general conference in Hnahthial town, the Chief Minister said the plant would be developed across the Darzo Nallah, a tributary of the Tuipui river. Once operational, the project is expected to play a pivotal role in meeting Mizoram’s rising electricity demand and reducing dependence on imported power. Officials from the State Power..

Next Story
Infrastructure Energy

Centre Plans Nationwide Opening Of Power Retail Market

India is preparing to open up its retail electricity market to private companies nationwide, effectively ending the long-standing monopoly of state-run power distributors in most regions, according to a draft bill released by the Union Power Ministry on Friday. The move will enable major private sector players — including Adani Enterprises, Tata Power, Torrent Power, and CESC — to expand their presence across the country’s electricity distribution landscape. A similar reform attempt in 2022 had faced strong opposition from state-run distribution companies (discoms), which currently dom..

Next Story
Infrastructure Energy

CEA Sets 100 GW Nuclear Target For India By 2047

In a landmark step marking its 52nd Foundation Day, the Central Electricity Authority (CEA) unveiled an ambitious roadmap to develop 100 gigawatts (GW) of nuclear power capacity by 2047, aligning with India’s long-term Net-Zero commitment and energy security objectives. The event, held at the Central Water Commission auditorium in New Delhi’s R.K. Puram, was attended by Pankaj Agarwal, Secretary, Ministry of Power, who served as the Chief Guest. The roadmap sets out a detailed plan to expand India’s nuclear capacity from its current level of approximately 8,180 MW as of early 2025, outl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?