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Green cement is the only possible future

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Ganesh W Jirkuntwar, Senior Executive Director and National Manufacturing Head, Dalmia Cement (Bharat), discusses how green cement is redefining the future of construction with lower emissions, innovative technologies and a commitment to sustainability.

As climate change accelerates, the cement industry faces mounting pressure to decarbonise. From low carbon cements to near-zero emissions technologies, the future of sustainable construction is taking shape. In this insightful interview with Ganesh W Jirkuntwar, Senior Executive Director and National Manufacturing Head, Dalmia Cement (Bharat), we explore the evolution of green cement, the innovations driving change and the challenges
still ahead.

What exactly is green cement, and how does it differ from traditional cement?
Green cement can be defined from various attributes. Global definitions of green cement and concrete are evolving in both the developed and developing world. International organisations and global coalitions such as International Energy Agency (IEA) and Industrial Deep Decarbonisation Imitative (IDDI), are working towards globally accepted definitions of green, near-zero carbon cement. However, in a broader perspective, a low carbon cement, green cement or near-zero carbon cement would be more eco-friendly due to adoption of inherent green manufacturing process, such as use of recycled waste, renewable energy, (Scope 1 and Scope 2) and avoidance of emissions in downstream value chain (Scope 3). Such cements utilise secondary cementitious materials (SCMs) such as:

  • Fly ash: A byproduct from coal-fired thermal power plants rich in silica and alumina, ideal for enhancing cement properties.
  • Ground Granulated Blast Furnace Slag (GGBS): A steel industry byproduct that, when finely ground, can substitute for clinker and dramatically cut emissions.
  • Calcined clay: A thermally treated form of clay that improves reactivity and serves as a low-carbon alternative raw material.

By integrating these materials, more eco-friendly low carbon cements can be produced to reduce the carbon footprint significantly.

What are the key environmental benefits of using low carbon cement?
Low carbon cement offers multiple environmental advantages:

  • Lower carbon emissions: By reducing the clinker content and using SCMs, such cements drastically cut CO2 emissions.
  • Energy and water efficiency: Its production consumes less energy and water compared to traditional methods.
  • Waste utilisation: It promotes the circular use of industrial byproducts, thereby reducing landfill burden and conserving natural resources.

These features make low carbon cement a pivotal player in sustainable construction.

Can low carbon cement match the durability and strength of conventional cement?
Yes, low carbon cement not only matches but, in some cases, exceeds the durability of traditional cement. It offers superior resistance to chemical attack, chloride penetration and sulphate exposure, making it particularly well-suited for marine and industrial environments. Cements made with materials like fly ash or slag can achieve compressive strength comparable to that of Ordinary Portland Cement (OPC), though they may exhibit a slower initial strength gain that improves significantly over time. Additionally, blended low carbon cement typically has a lower heat of hydration, which helps minimise thermal cracking in large-scale structures, enhancing overall durability and structural integrity.

What innovative technologies are being used to produce low carbon cement?
Innovations in low cement production include:

  • Waste Heat Recovery Systems (WHRS) that harness excess heat from cement kilns to generate clean energy.
    Use of alternative fuels including biomass and industrial waste, to replace fossil fuels.
  • Nuclear, heat electrification and green hydrogen to cater the base fuel and energy requirements while making the energy delivery free fromCO2 emissions.
  • Digitalisation and AI for optimising energyuse and reducing emissions across theproduction lifecycle.
  • Carbon Capture and Storage (CCS) technologies are in nascent stages but are capable of delivering green cement, a further up step in the trajectory of decarbonisation of the cement sector.

These technologies collectively enable a more efficient and sustainable production process. At the same time, presently, the sector is commercially producing the low carbon cement and levers to produce green cement are in nescient stages.

Low carbon cements can be cost-effective over the long term.

What challenges does the industry face in adopting low carbon and green cement on a large scale?
Several key challenges persist:
1. Process emissions from raw materials: A major portion of emissions comes from the calcination of limestone, a core ingredient. These emissions are process-related and hard to eliminate without transformative innovation.
2. High energy demand: Cement manufacturing requires extremely high temperatures, typically achieved using fossil fuels, making the transition to cleaner energy sources difficult.
3. Technology costs: Decarbonisation tools like CCUS and advanced WHR systems require significant capital investments, limiting access for smaller manufacturers.
4. Policy and regulatory gaps: The industry requires robust government policies and incentives to support the shift to low-carbon alternatives without compromising competitiveness.
5. Limited financial support: The absence of targeted financial incentives can deter large-scale investments in sustainable technologies and infrastructure.

Are governments and regulators supporting the shift to low carbon and green cement?
There is growing support from governments and regulatory bodies globally. Through a combination of procurement policies, financial support, regulatory reforms and international partnerships, governments and regulators are actively facilitating the shift towards 100 per cent low carbon cements in the short term and green cement in the longer term to achieve broader climate objectives.

How do you see the future of low carbon and green cement in global construction?
Low carbon and green cement is the only possible future for the cement industry. We have more than 90 per cent global GDP targets to switch to Net Zero by 2050 or beyond. In such a scenario, policy, regulatory and technology developments would happen in this direction only.
Cement production is a major contributor to greenhouse gas emissions, primarily due to the high energy required to heat kilns and the chemical process that transforms limestone into calcium oxide. Despite the inherent challenges—chief among them being energy intensity and emissions from limestone India’s cement industry is demonstrating leadership through innovation. By leveraging SCMs, enhancing energy efficiency, substituting fossil fuels with alternative energy sources, utilising waste heat for power generation and adopting innovative production techniques and process improvements.
Technologies like solar energy, renewable biomass fuels and electrification of kilns are transforming the landscape. Across the globe, companies are rethinking manufacturing to align with clean energy goals, and green cement is at the heart of this transformation.
In 2018, Dalmia became the world’s first cement company to share an ambition to become a carbon negative cement group at the world stage, which subsequently changed the entire sector’s discourse. To reach our ambition, we have focused on recycling, reusing resources and integrating alternative materials and fuels into our production processes. At the same time, delivery of carbon negative ambition is also subject to the external conducive environment for development of new innovative solutions such as CCUS, heat electrification, nuclear energy, etc.
Today, our operations maintain one of the lowest net carbon footprints in the global cement sector. Our exit month figure for FY25 was further reduced to 453 kg of CO2 per tonne of cement. As global population growth drives demand for housing and infrastructure, the need for sustainable construction is more urgent than ever. In this context, both India and the world must accelerate the transition toward a zero-carbon future. Environmentally conscious consumers are increasingly opting for greener alternatives. By adopting green practices, cement companies can meet this evolving demand, gain a competitive market edge and position themselves as responsible, forward-thinking businesses.

– Kanika Mathur

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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