Adani's Ambuja Cements, Leilac target zero-coal cement at Gujarat plant

Ambuja Cements, the Adani Group's building-materials arm, is working with UK-based Leilac Ltd on one of the largest commercial-scale low-carbon cement projects. The companies will test Leilac's carbon capture and hybrid electrification technology at Ambuja's 6.6 million-tonne-per-year Sanghipuram plant in Gujarat's Kutch district, the company said Monday.

The technology aims to cut emissions, lower fuel consumption, and boost renewable electricity use in cement-making. It could reduce coal consumption to zero and allow flexible use of alternative fuels. Adani Group sources told businessline that no cost commitments have been made for the demonstration project yet. The company did not give a timeline.

Under the first phase, the two sides will study the technical and commercial feasibility of designing, developing, and deploying the technology before any investment decisions, sources said. The partnership is part of Ambuja's broader decarbonisation strategy and supports its Science-Based Targets initiative (SBTi)-validated net-zero target for 2050. Ambuja is also building nearly 1 GW of captive green power capacity to electrify cement manufacturing.

If the demonstration succeeds, the project could scale seven to eight times, capturing more than one million tonnes of carbon dioxide annually. The companies said the initiative could create a scalable pathway for low-carbon cement in India and beyond. "The cement industry's transition to a lower-carbon future will require bold thinking, technological innovation and collaboration across the value chain," Karan Adani, Director of Ambuja Cements, said in a release. "Our partnership with Leilac reflects our commitment to evaluating next-generation technologies that can reduce process emissions, while improving energy efficiency and supporting long-term sustainable growth."

The read-through for the sector is narrow but real. Ambuja is the first Indian cement maker to test Leilac's hybrid electrification at commercial scale. If the technology works, it would give Adani a cost and regulatory edge over peers like UltraTech Cement and Shree Cement, which are also chasing net-zero targets but have not disclosed similar pilot-stage carbon capture projects. The key variable is cost: without a disclosed budget or timeline, the project remains a feasibility study, not a construction commitment. Investors tracking the sector should watch for the next phase announcement, which would signal whether the technical review passed and capital allocation is next.