India’s cement industry, the world’s second-largest by volume, is accelerating its transition toward low‑carbon production as manufacturers commit to ambitious decarbonisation targets and expand their renewable energy portfolios. With national cement capacity reaching 718 million tonnes per annum (MTPA) at the end of FY26—and another 100 million tonnes expected by FY28—the sector is under increasing pressure to curb emissions from one of the most carbon‑intensive industrial processes.
Independent agencies and industry analysts note that leading producers have now outlined net‑zero roadmaps spanning the next 15–20 years. According to rating agency ICRA, the shift is driven not only by sustainability commitments but also by the need to mitigate fuel price volatility and strengthen long‑term cost competitiveness.
ICRA reports that companies are rapidly increasing the share of green power, expanding blended cement production, adopting alternative fuels, and improving clinker efficiency. A major contributor to this transition is the widespread deployment of waste heat recovery systems (WHRS), which capture heat generated during cement production and convert it into electricity for captive use—reducing both emissions and power costs.
Ramco Cements Leads with WHRS and Wind Power
South India–based Ramco Cements Ltd has emerged as one of the sector’s frontrunners, building 53 MW of WHRS capacity and expanding its wind power portfolio to 166 MW. In FY26, the company commissioned an additional 8 MW WHRS unit at its Ramasamy Raja Nagar plant, helping raise its green power share to 40%, up from 36% the previous year.
Managing Director P. R. Venketrama Raja said the company’s sustainability initiatives have reduced dependence on purchased power while strengthening its long‑term carbon commitments. Record wind generation in FY26 further boosted Ramco’s renewable energy mix.
UltraTech-Owned India Cements and Dalmia Cement Scale Up Renewables
India Cements—now part of UltraTech Cement—is also accelerating its clean‑energy transition. The company is expanding solar and wind power consumption and rolling out WHRS across suitable manufacturing sites. Renewable power already accounts for one‑fourth of its total energy mix.
Dalmia Cement continues to strengthen its renewable energy portfolio as well. In Tamil Nadu, the company increased its stake in two solar projects to source up to 28 MW, and acquired a 38.6% stake in another 9 MW project. Its total captive solar capacity now stands at 37 MW, contributing to an overall renewable energy portfolio of 449 MW. Renewables accounted for 46% of Dalmia’s energy mix in FY26.
Cost Savings and Investment Outlook
ICRA estimates that every 5% increase in green power replacement can reduce power and fuel costs by ₹15–16 per tonne, while a 25% replacement could save ₹75–80 per tonne and expand operating margins by 140–160 basis points.
India’s major cement companies are expected to increase their combined green power capacity to 5.8–6.0 GW by March 2028, up from 4.0 GW in March 2026. Planned investments of ₹12,000–13,000 crore over the next two years could generate annual savings of ₹6,200–6,700 crore.
Carbon Capture and Green Financing Gain Momentum
Beyond renewable energy, the industry is evaluating advanced technologies such as carbon capture, utilisation and storage (CCUS). The Government of India has proposed a ₹20,000 crore outlay over five years to support CCUS deployment across key sectors, including cement.
Green financing is also emerging as a critical enabler of the decarbonisation journey. Although still nascent in India, several manufacturers have begun tapping sustainability‑linked bonds and loans to fund renewable power projects, WHRS installations, and other climate‑aligned initiatives.
Photo by Ravit Bennier Cohen on Unsplash
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Want to know more about decarbonization, sustainable industry trends, and the breakthroughs driving real change? Explore the complete lineup of Industry Link’s 2026 events below:
Cementitious Materials International Technical & Trade Congress – Europe
28–29 October, Brussels, Belgium
A leading EMEA gathering on cementitious materials, market trends, regulatory updates, and regional opportunities.
CarbonZero Alternative Fuels & Raw Materials Global Conference & Exhibition 2026
Including Cementitious Europe – Congress
28–29 October, Brussels, Belgium
Global platform for Net Zero strategies, alternative fuels, raw materials, carbon capture, and emerging technologies.
Speakers include:
- Claudia Albertini, CEO Holcim Belgium
- Mahendra Singhi, Board Member & Strategic Advisor, Dalmia Bharat India, Board Member, GCCA
- Adriana Fernandez, UNIDO
- Nikos Nikolakakos, Environment & Resources Manager, Cement Europe
- Irene Dominguez, Policy Manager, Embodied Carbon & Lead Markets, Bellona Europe
- Maria del Mar Rojas, Science Based Targets Initiative (SBTI)
- Dr Martina Bassan, Corporate Affairs Director, European Metals
- Eadbhard Pernot, Executive Director,Carbon Management Europe
- Kerry Sutton, American Concrete Institute
- Hervé Camerlynck, Managing Director, FEBELCEM
- Jacob Moos, Associate Partner, McKinsey
- Pilar Hidalgo, Innovation Director, Cementos La Cruz
- Anna-Marise Rocha, Commercial Manager, Port of Amsterdam
- Frank Mruk, National Ready Mix Cement Association USA
- Luyue Tan, Senior Research Specialist, Carbon, London Stock Exchange Group
- Grant QUASHA, Chairman and CEO, Eco Material Technologies, A CRH Company, USA
- Dr. Stefan Puntke, Managing Director and Dr. Hans-Jürgen Klischat, Executive for Strategic Projects, Refratechnik
- Hongyan Ma, Professor, Missouri University of Science and Technology, USA
- Marta Diez, Country Manager Spain, Portugal, Italy, CFP Energy
- Dr. Josilene TV Ferrer, Senior Analyst for International Cooperation and Climate Change, Green Planet Institute Brazil
- Andres Ponce, CEO, WTEnergy Advanced Solutions
- Mohammed Fouad, Business Excellence Director, Riyadh Cement Company Saudi Arabia
- Mohammed Zaki, Head of Alternative Fuels & H2 Operations Management, Arabian Cement Company Egypt
- Pilar Hidalgo, Head of Innovation, Cementos Las Cruz, Spain
- Tien Peng, Cofounder, GreenPlum St., Portugal
- Georg Lochner, Strategic company development “New Technologies”, Schwenk Building Materials Group, Germany
- Duncan McLachlan, VP Growth & Enterprise, io Consulting
- Alexander Makhlay, Associate Editor, Argus Media
- Cobi Busst, Principal, Beaumont Bailey
- Firefly
Women in Cement and Construction International Congress 2026 – EMEA
30 October, Brussels, Belgium
A dedicated forum advancing diversity, equity, and inclusion across the cement and construction sectors.
Sustainability Conference and Exhibition to include Industry 5.0 – Smart Solutions for Cement and Construction Conference and Exhibition 2026 in São Paulo (World Trade Center)- will convene leading voices from across the global construction, engineering, and infrastructure sectors to address the urgent challenges of decarbonization, embodied carbon reduction, and climate resilience. As the sector undergoes a massive digital shift, this event also focuses on the technologies defining the next generation of building: AI-driven operations, advanced manufacturing, robotics, and human-centric industrial transformation.
Speakers include:
Álvaro Lorenz – Global Director of Sustainability, Votorantim Cimentos
Vanessa Castro, Sustainability, Cementos Argos
Luciana Arouca – Head of Sustainability Services Brazil & LATAM, JLLAna Lúcia Grizzi – Senior Independent Consultant; Coordinator of the Sustainability and Innovation Committee, Votorantim Cimentos
Josilene T. V. Ferrer – Senior Analyst of International Cooperation and Climate Change, CETESB – Environmental Company of the State of São Paulo
Carla Leal – CDP Market Director for LATAM | Board Members
Patrícia Iglecias – Associate Professor, Faculty of Law, University of São Paulo
Juan Padial – Managing Partner, Digital Supply Chain, KPMG
Felipe Salgado – Managing Partner of Decarbonization, KPMG
Rejane Afonso – Technical and Commercial Director, Monitore
Edilson Júnior – Manager of Innovation and Industrial Technology, Cimento Nacional
Cementitious Materials International Technical & Trade Congress – MEA
8–9 December, Morocco
The premier MEA event for cementitious materials, innovation, and regional trade opportunities.
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