JSW Cement has signed a Memorandum of Understanding with Punjab Renewable Energy Systems to use agricultural waste as biomass energy in its cement-manufacturing operations.

Punjab Renewable Energy Systems is one of the leading biomass aggregation and densification companies.

As per the agreement signed, the company will build a sustainable supply chain of agricultural waste to be utilised as biomass energy in the clinkerisation and grinding process.

JSW Cement plans to reduce its carbon emissions intensity by almost half by FY26. The use of biomass as fuel is an important part of this decarbonisation plan.

Agri-waste is usually burnt in open fields which impact the surrounding air quality. JSW Cement will use agri-waste as fuel to help reduce its business dependency on coal and cut its carbon emissions, besides helping farmers generate additional income.

Parth Jindal, Managing Director, JSW Cement, said the circular economy principle is an integral part of the business model and last year, a small beginning was made to source about 5 per cent of fuel requirement through alternate fuels. The new tie-up will help further strengthen the alternative fuel strategy with the introduction of biomass fuel in operations, he said.

The development will not only help reduce carbon emissions but enable farmers reap economic benefits from the agricultural waste while improving the air quality, he added.