India Cements to secure 11 MW of renewable power through Zenataris stake acquisition

India Cements Ltd. has entered into energy supply and share subscription agreements to acquire a 3.62% equity stake in Zenataris Renewable Energy Pvt. Ltd., the cement producer and supplier said in a statement Oct. 16.

India Cements said it will invest up to 209 million rupees ($2.5 million) in the Hyderabad-based renewable energy developer, strengthening its renewable energy portfolio. The transaction is expected to close within 120 days of the agreement's execution.

Zenataris Renewable Energy is developing an Inter-State Transmission System-connected hybrid renewable energy project in Karnataka's Vijayanagara district. Under the arrangement, the special-purpose vehicle will supply 11 megawatts of renewable electricity to India Cements' plants on a group-captive basis.

Market participants said the investment reflects a broader trend among cement producers to expand their use of renewable energy and other technologies to improve operational efficiency.

An Asia-based trader said companies across the region are increasingly investing in renewable power generation, waste-heat recovery systems and energy-efficiency projects to reduce operating costs and advance their decarbonization goals.

"Much like the recent project at UltraTech Cement's Chhattisgarh plant, the shift to renewable energy is becoming increasingly important to cement producers' long-term operating strategies," the trader said.

Platts, part of S&P Global Energy, assessed ASTM Type I cement FOB Vietnam at $38/metric ton on Oct. 15, down from $39/mt the previous week. Platts assessed clinker FOB Vietnam at $36/mt, up from $33.50/mt over the same period.