UltraTech Cement, India's biggest cement company & largest exporter of cement in India, has signed non-binding memorandum of understanding (MoU) with Punjab Renewable Energy Systems (PRESPL), India’s largest biomass aggregation and densification company with forward integrated value chain.

The MoU is part of UltraTech’s endeavor to decarbonize its operations and aims to significantly scale-up the use of biomass in place of fossil fuel like coal in UltraTech’s manufacturing operations.Under the agreement, PRESPL will leverage its technological expertise to replace coal based systems with biomass-based processes. PRESPL will execute the biomass-based projects at three of UltraTech’s units. Cumulatively, implementation of these three projects is estimated to generate annual carbon savings of over 150 thousand tonnes of CO2.

As part of this agreement, PRESPL will also build a sustainable supply chain of agricultural waste to be utilized as biomass energy in the kilns of UltraTech’s integrated units. This biomass-based fuel model helps to safely dispose agri-residue, which is currently burnt in open fields, thus helping reduce Scope 1 and Scope 2 emissions. Higher usage of agri residue in cement kilns, will also augment income for farmers, while reducing the country’s dependency on coal imports.

Shares of the company gained Rs 104.80, or 1.45%, to trade at  Rs 7,357.15.  The total volume of shares traded  was  7,647 at the BSE (12.38 p.m., Wednesday).