Manufacturing Bullish 7 Based on a press release

Ambuja Targets 1M Tons CO₂ Capture, Transforming Cement Supply Chains

Ambuja Cements’ partnership with Leilac aims to capture over 1 million tonnes of CO₂ annually at its Kutch plant, a move that could redefine supply chain decarbonisation in the cement industry. The integration of carbon capture and renewable-powered electric heating promises to lower emissions across the manufacturing and logistics chain.

· 3 min read · Verified by 2 sources ·
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Key Takeaways

  • Ambuja Cements’ partnership with Leilac aims to capture over 1 million tonnes of CO₂ annually at its Kutch plant, a move that could redefine supply chain decarbonisation in the cement industry.
  • The integration of carbon capture and renewable-powered electric heating promises to lower emissions across the manufacturing and logistics chain.

Mentioned

Ambuja Cements company AMBUJACEM Leilac Limited company Karan Adani person Daniel Rennie person Adani Group company ADANIENT Sanghi Plant facility

Key Intelligence

Key Facts

  1. 1Ambuja Cements has partnered with Leilac Limited to develop a commercial-scale low-carbon cement pathway at its 6.6 MTPA Sanghi plant in Sanghipuram, Kutch.
  2. 2The project targets capturing more than 1 million tonnes of CO₂ annually after scaling the demonstration plant by 7–8 times.
  3. 3Leilac’s technology combines carbon capture with hybrid electric heating, aiming to reduce coal consumption to zero while enabling flexible use of alternate fuels.
  4. 4Ambuja Cements holds an SBTi-validated net zero target for 2050 and is backed by nearly 1 GW of captive green power to electrify manufacturing.
  5. 5The companies claim the project, if successful, would be the largest industrial-scale carbon capture plant for cement globally.
Annual Capture Target (post-scale-up)
1 million tonnes CO₂/year 7-8x scale-up from demo

Subject to successful demonstration at 6.6 MTPA Sanghi plant

Who's Affected

Ambuja Cements
companyPositive
Leilac
companyPositive
Cement Buyers/Infra Developers
industryPositive
Coal Suppliers
industryNegative

Analysis

For supply chain and logistics professionals, cement’s carbon footprint has become a headline risk as customers and regulators demand cleaner materials. Ambuja’s project directly attacks the cement production process at its most carbon-intensive point—the kiln—while leveraging nearly 1 GW of captive green power. If successful, it could reshape procurement strategies, supplier qualification criteria, and the flow of low-carbon construction materials through India’s fast-growing infrastructure pipeline.

Ambuja Cements, part of the Adani Group, has taken a decisive step toward industrial decarbonisation by partnering with UK-based clean technology firm Leilac Limited. The collaboration aims to establish a commercial-scale low-carbon cement production pathway at Ambuja’s 6.6 million tonnes per annum (MTPA) Sanghi plant in Sanghipuram, Kutch, Gujarat. The centrepiece is a demonstration project integrating Leilac’s carbon capture and hybrid electric heating technology. Subject to successful demonstration, the system could be scaled by a factor of seven to eight, ultimately capturing more than one million tonnes of carbon dioxide annually. Ambuja frames the initiative as central to its broader decarbonisation strategy and its Science Based Targets initiative (SBTi)-validated net zero goal for 2050.

Ambuja Cements, part of the Adani Group, has taken a decisive step toward industrial decarbonisation by partnering with UK-based clean technology firm Leilac Limited.

The cement industry is one of the hardest-to-abate sectors, responsible for roughly 7% of global CO₂ emissions. About two-thirds of those emissions come from the chemical process of calcination—the unavoidable release of CO₂ when limestone is heated. Ambuja and Leilac’s approach directly targets this process emission by capturing the CO₂ rather than simply reducing fuel-burning emissions. Meanwhile, Leilac’s hybrid electric heating technology aims to electrify a portion of the thermal energy input, reducing reliance on coal. Ambuja claims the design could eventually allow coal consumption to fall to zero while flexibly incorporating alternative fuels. This matters enormously in India, where coal dominates cement kilns and the government is pushing for rapid industrial decarbonisation under its updated nationally determined contributions.

The Sanghipuram project is positioned to become the largest industrial-scale plant of its kind globally. Ambuja is already backing the move with nearly 1 GW of captive green power, which will help electrify manufacturing and further lower the carbon intensity of the cement. By combining renewable electricity with carbon capture, the project is an attempt to crack the economic puzzle of carbon capture and utilisation (CCU) in a cost-sensitive market. Karan Adani, Director of Ambuja Cements, described the partnership as a reflection of the company’s commitment to next-generation technologies that can reduce process emissions, improve energy efficiency, and support long-term sustainable growth.

What to Watch

The timing is significant. India’s cement sector is under escalating pressure from regulators, investors, and international buyers to decarbonise. The Bureau of Energy Efficiency’s Perform, Achieve and Trade (PAT) scheme and the possible introduction of a domestic carbon market are sharpening the incentive to capture emissions. If the Ambuja-Leilac project proves technically and economically viable at scale, it could become a template for other domestic producers, dramatically accelerating the sector’s clean transition. International cement groups, too, will be watching: a successful demonstration in India could validate the Leilac technology for wider global adoption, given the country’s cost structures and massive growth in cement demand.

Yet challenges remain. Scaling from a demonstration plant to a 7–8× larger commercial unit is ambitious, and the economics of carbon capture in a commodity business hinge on policy support, carbon pricing, and long-term power purchase agreements for renewable electricity. Moreover, capture alone does not eliminate CO₂—utilisation or permanent storage pathways must mature in parallel. The announcement, however, underscores a clear shift from talk to action in hard-to-abate sectors, with concrete (pun intended) investments moving forward.

Sources

Sources

Based on 2 source articles

Cite This Page

"Ambuja Targets 1M Tons CO₂ Capture, Transforming Cement Supply Chains." Supply Chain Intelligence Brief, July 13, 2026. https://getsupplybrief.com/story/ambuja-leilac-1m-co2-capture-supply-chain

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