Sudhir Pathak, Head – Central Design and Engg (CDE), QA, Green Hydrogen, Hero Future Energies, talks about empowering India’s hard-to-abate industries with innovative renewable energy technology.

How is Hero Future Energies contributing to reducing emissions in hard-to-abate sectors like cement manufacturing, and what role does renewable energy play in this effort?
Today, Hero Future Energies (HFE) is no longer simply a renewable energy (RE) provider but has transformed into an end-to-end Net Zero partner especially for construction and infrastructure clients in the hard-to-abate sectors. In addition to providing Scope 2 based solutions, such as behind the meter RE (rooftop and ground mount solar) and open access-based RE including developing RE-100 roadmaps we also support Scope 1 and 3 emission decarbonisation by providing complete turnkey solutions through the use of green hydrogen and its derivatives. For hard-to-abate sectors like cement, HFE is in advanced discussions with few leading players, regarding enabling decarbonisation of their heating applications such as pre-calciners, rotary kilns etc through green fuels. This supplements our Scope 2 solutions for the cement industry.

With HFE’s focus on clean technologies like green hydrogen and energy storage, how do you envision these innovations helping the cement industry reduce its carbon footprint?
The cement industry is one of the largest consumers of grid power (Scope 2) and also a guzzler of in-process fossil CO2 (Scope 1) including process-based CO2 through limekilns. In the case of Scope 2, decarbonisation can be achieved only up to 50 per cent to 60 per cent through plain hybrid solar and wind. However, for achieving balance 40 per cent, storage is essential, be it chemical or mechanical. Today, HFE is ready to provide such bespoke storage solutions as is evident through several complex RTC tenders that we have won in the last 6-8 months floated by agencies like SECI, NTPC and SJVN. These include tenders for FDRE projects, peak power, load following, etc. Further, regarding green hydrogen and its derivatives, we are ready to apply these for decarbonising industrial heating and mobility (Scope 1 and 3).

What are some of the biggest challenges you face when working with the cement sector to integrate renewable energy solutions and reduce emissions?
Deployment of renewable energy for mitigating Scope 2 emissions is relatively easy, except for RE behind the meter, looking at the high dust levels involved in cement production particularly in the crushers. Regarding Scope 1 decarbonisation, there are several challenges. Unlike in Europe, the majority of the Indian cement industry uses coal combustion in heating applications. This being a solid fuel, is suitable for horizontal rotary kilns and needs positive pressures for combustion processes, whereas, green hydrogen, being the lightest of molecules, are good and amenable, when working in vertical combustion shafts. Therefore, existing facilities may be used only partially, and for complete conversion, new installations will be needed. This will entail a significant amount of space inside the plants, which is currently scarce.

HFE has been involved in pioneering projects like hybrid power and energy storage. How do these technologies improve energy efficiency and lower emissions in industries like cement manufacturing?
Cement industry by its nature has a 24×7 duty cycle demand for electricity. Therefore, solar power by itself can’t be a perfect solution, the sector needs round-the-clock RE. While hybrid RE (a right mix of solar and wind), can help to an extent (better than only solar), we will still have to depend on storage to provide predictable supply of electricity, or what is termed as ‘Firm Dispatchable’ RE. In such cases, storage can be provided either through batteries like Li Ion, Sodium Ion, Metal Air or Pumped Hydro and Long Duration Energy Storage (LDES) mechanisms.

How does HFE address the intermittency issues of renewable energy, ensuring a stable and reliable energy supply to cement plants while minimising emissions?
As explained above, this can be resolved through appending storage solutions. However this needs meticulous assessment of RE power every year, every month, every day, every hour and every time block (15 minutes). Further, one needs to carry out an arduous due diligence process for forecasting solar and wind patterns for 25 years. We, at HFE, have the expertise to do this to a great extent, thereby derisking ourselves and offtakers from such vagaries. Our success in winning eight complex FDRE tenders in the recent past testify to this.

Given that cement is one of the largest contributors to industrial emissions, what potential do you see for technologies like green hydrogen to decarbonise cement production in the coming decade?
We believe that emergence of green hydrogen presents a huge opportunity to decarbonise hard to abate sectors such as cement. Not only green hydrogen, but its derivatives like ammonia and methanol also hold huge potential to mitigate industrial carbon footprint. The cement industry sees huge volumes of CO2 being emitted as a result of limestone processing, which is a crucial process. These can be reused and converted to low carbon methanol. With the government promoting M15, M85, MD15 and M100, the same can be used for quick decarbonisation.

What are HFE’s long-term goals regarding environmental sustainability and emission reduction, and how does the company plan to scale these efforts to help heavy industries achieve their sustainability targets?
At HFE, we are committed to a sustainable and low-carbon future through provision of smart, affordable, clean energy and tech solutions. On the utility front, we are focused on complex, high CUF projects that aim to help overcome the intermittency barrier and pave the way for firm, dispatchable, round the clock green power. For our C&I clients, we offer a complete suite of solutions as their Net Zero partner, evolving from being just an RE provider.

If India is to achieve its Net Zero goal, then industrial decarbonisation must take centrestage and this is the space where we believe HFE can be a major player. We see ourselves as an end to end integrated Net Zero partner for businesses, particularly those in hard to abate sectors like cement, steel, chemicals and mobility, charting out a Net Zero roadmap for them and then guiding them to reach the target in a phased manner.

Lohia Corp Limited (LCL) is pleased to announce two significant milestones that mark our
expansion in the global market.

We have successfully acquired J.J. Jenkins Inc. a respected name in machine manufacturing for
high-tech industries, through our US subsidiary, Leesona Corp, a 130-year-old pioneer in winding
machines. This acquisition aligns perfectly with our strategic vision to expand our specialty yarns
and tapes portfolio in medical and defence applications.

In addition, we have formed a strategic Joint Venture with Italy’s O.M.G.M. sas, leading to the
creation of OMGM Extrusiontechnik Srl. With LCL holding the majority stake. This JV represents
a significant diversification of our product portfolio, introducing solutions in Extrusion and
Winding systems for a variety of technical applications.

These advancements are not just about growth; they’re about bringing cutting-edge solutions to
our customers and contributing to industries that make a difference. Stay tuned for more updates
as we continue to push the boundaries of technology and engineering excellence.

Mr. R K Lohia, Chairman & Managing Director of Lohia Corp Limited, expressed his enthusiasm
about the new ventures “Both these new partnerships are a pivotal move that will broaden our
product offerings and provide our customers with even more choices and will enhance our
presence in the North America and European market, at the same time strengthen our presence
in all other global markets.”

About Lohia Corp Limited
Lohia Corp Limited (LCL) stands as a testament to the power of innovation and commitment to
excellence. As the flagship company of the Lohia Group, LCL has established itself as a global
leader in providing comprehensive solutions for the raffia industry.

With an impressive installation base of over 2,250 extrusion lines and 95,000 Circular Looms
across more than 100 countries, LCL’s influence in the plastic woven fabric and bag sector is
unparalleled. The company’s dedication to quality and efficiency has resulted in an astounding
plastic processing capacity of 7.7 million metric tons per annum of PP & PE.

LCL’s products, ranging from packaging systems for solid bulk materials to roof underlays and
tarpaulins, are not just industrial applications; they are the building blocks of industries
worldwide.

The company’s commitment to sustainability and innovation is the driving force that makes it the
world’s largest producer of machines for the raffia sector. As we look to the future, LCL’s legacy
of excellence is more than just a benchmark; it is a continuous journey towards pushing the
boundaries of possibility.

About J. J. Jenkins, Inc
J. J. Jenkins Inc. is a very respected name based out of North Carolina, USA. They remain at the
forefront of the synthetic fiber and monofilament industries. Their unwavering commitment to
innovation, quality, and customer satisfaction has not only set industry standards but also
fostered enduring partnerships with Fortune 500 companies including some in the medical and
defence industries.

Their holistic approach, combining state-of-the-art technology with unparalleled after-sales
support, exemplifies their dedication to client success. With a vast inventory ensuring rapid
response times, J. J. Jenkins, Inc. is synonymous with reliability and efficiency.

About OMGM sas
Since 1965, OMGM sas is a distinguished Italian leader and has been at the forefront of the plastic
processing industry, pioneering in Monofilament Extrusion, straps, ropes and various other niche
applications. Their commitment to excellence is evident in their advanced technologies and
versatile extrusion lines, handling a variety of materials for diverse industries.

As we look ahead, it’s clear that OMGM Extrusiontechnik Srl will continue to lead and transform
the industry with their precision, innovation, and bespoke solutions. They are more than a
company; they are a trusted partner in progress.

Acquisition adds 16.6 MTPA capacity (8.5 MTPA operational, 8.1 MTPA Ready to Execute).

Accelerates Ambuja’s journey to achieve 100+ MTPA operational capacity in FY 25

Provides 6 MTPA potential additional capacity in North India, leveraging OCL’s high quality limestone reserves in Rajasthan

EDITOR’S SYNOPSIS

• Ambuja enters into a binding agreement to acquire 46.8% stake in Orient Cement Ltd (OCL). The acquisition helps to move towards target capacity of 140 MTPA by 2028.
• OCL has an existing 5.6 MTPA clinker and 8.5 MTPA cement operational capacity, 95 MW CPP, 10 MW WHRS, 33 MW Renewable Energy spread across the states of Telangana, Karnataka and Maharashtra. It improves Adani Group’s market share pan-India by 2% in the cement industry.
• OCL has secured a concession from Madhya Pradesh Power Generating Company Ltd (“MPPGCL”) to set up 2.0 MTPA Cement GU within the premises of Satpura Thermal Power Station in Sarni, MP.
• OCL also has a large high quality limestone mining lease in Chittorgarh, Rajasthan, providing the potential to set up additional 6 MTPA capacity in North India.
• The acquisition of OCL complements Ambuja’s existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets.
• Acquisition will be funded through internal accruals, Ambuja remains debt free.

Ahmedabad, 22 October 2024: Ambuja Cements, the cement and building material company of Adani Cement and part of the diversified Adani Group, today announced the signing of a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of Rs. 8,100 crore. Ambuja will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.

“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr Karan Adani, Director of Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA.”

Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders”.

Ms Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”

OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. OCL has also secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of Satpura Thermal Power Plant. Both these complement the Adani Group’s existing cement footprint. (Refer Annexure – 1 for OCL’s location wise cement capacity and other assets and Annexure – 2 for Adani Cement’s footprint post-acquisition of OCL.)

OCL has recently commissioned a WHRS in Chittapur IU and is in the final stage of commissioning 16 MW solar in Chittapur and 3.7 MW solar in Jalgaon. OCL’s efficient plants, highly motivated teams, strong balance sheet and well-distributed dealer network will be excellent additions to the Adani Group’s existing cement business. OCL’s existing dealers will move to Adani Cement’s market network, creating formidable synergies.

Ambuja plans to optimize OCL’s overall capacity utilization to enhance its cost and competitiveness and improve its operating performance while leveraging the synergies inherent in the existing cement business.

About Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd is one of India’s leading cement companies and a member of the diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable businesses. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group’s cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country. Ambuja has been recognized among ‘India’s Most Trusted Cement Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The company has many firsts to its credit – a captive port with six terminals that facilitates timely, cost-effective and cleaner shipments of bulk cement to its customers. Its innovative products like Ambuja Cement, Ambuja Plus, Ambuja Compocem and Ambuja Kawach are now listed in the GRIHA product catalogue. These products not only fulfil important customer needs but also help in significantly reducing their carbon footprints. Being a frontrunner in sustainable business practices, Ambuja Cements ranks among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India’s Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.

For further information on this release, please contact: roy.paul@adani.com

Annexure -1 | Existing Cement Assets of Orient Cement Limited

* capacity is in commissioning stage

Annexure – 2 | Footprint of Adani Group – Cement business post OCL Acquisition