Heidelberg Cement's planned 152KWp solar power plant
The plant to reduce 160 tonnes carbon emission per year
The company plans to increase the plant's capacity to 500KWp in two years
In the first quarter of this year, it reported nine times higher profit
In the last year, it declared a 20% cash dividend to the shareholders despite incurred a loss of Tk8.08 crore
In line with its target to achieve carbon neutrality, Heidelberg Cement Bangladesh Limited is set to install a solar power plant in the country to reduce carbon (CO2) emission.
The Germany-based multinational cement manufacturer took up a 152 KWp solar power project that will generate 220 MWh and reduce CO2 by 160 tonnes per year, according to company sources.
The company plans to scale up the plant's solar power capacity to 500 KWp in the next two years.
The United Nations Climate Action Plan outlines a massive transformation of operations to attain a 45% reduction in carbon emission and an 80% sourcing of electricity from renewable energy by 2030. In this regard, Bangladesh has developed a Nationally Determined Contributions (NDC) document following the UNFCCC guidelines under the Paris Agreement.
In its NDC, Bangladesh pledged to bring down greenhouse gas emissions by 5% from the power, transport and industry sectors by 2030. However, depending on international assistance, a 15% emissions reduction could be achieved.
"Heidelberg Cement is always committed to respecting the law of the land regarding environmental protection and also to bring change in industrial and construction solutions that are more environmentally friendly. Our dedicated team are constantly innovating new production methodologies in order to significantly lessen our carbon footprint," Kevin Gerard Gluskie, chairman of Heidelberg Cement Bangladesh, said in the company's 2020 annual report.
Meanwhile, multinational Lafarge Holcim, a major competitor of Heidelberg Cement, also installed a 33 Kilovolt (kV) Grid Power line in the country, which is expected to be operational soon.
This project will eliminate the dependency of the company on diesel and reduce its carbon footprint.
Meanwhile, Heidelberg Cement Bangladesh has witnessed nine times higher year-on-year growth in net profit to Tk46.51 crore in the first quarter of this year.
The German-based multinational company, which incurred a loss of Tk8.08 crore last year, has declared a 20% cash dividend for its shareholders after a year gap.
Last year its revenue stood at Tk1,168.10 crore, which was slightly lower than the previous year.
But in the January-March quarter of this year, the cement manufacturer reported a 44% growth in revenue to Tk550.58 crore, and the earnings per share stood at Tk8.23.
"The first quarter result of 2021 made us confident for positive business development. The market outlook for 2021 shows positive for Bangladesh, where our plants are well-positioned to serve the continuing growth," said Gluskie.
Heidelberg Cement's share price jumped 98% to Tk320 in the last three months till 24 June this year at the Dhaka Stock Exchange.