Fauji Cement to install battery storage, solar power at two plants

Fauji Cement Company Limited (FCCL) has approved a project to install battery energy storage systems (BESS) and dedicated solar power capacity at two of its plants. The Pakistan Stock Exchange (PSX) was informed of the decision in a notice on Tuesday. The Board of Directors approved the installation of 25 MWh of BESS and 5 MW of solar power each at FCCL's Nizampur and Jhang Bahtar plants. The project is expected to be completed within 10 months of its start date.

The primary goal of the project is to store daytime solar energy in the BESS for use during evening peak hours. This strategy aims to lessen reliance on peak grid electricity, optimize the company's energy costs, and increase its renewable energy capacity. FCCL was established in Pakistan as a public company in 1992 and began operations in 1993, with a focus on manufacturing and selling various types of cement.

In the fiscal year 2025 (FY25), FCCL expanded its solar capacity to 67.5 MW, meeting 90% of its packaging needs and contributing to energy efficiency. Pakistan has been witnessing a shift towards alternative energy sources, particularly solar, which has gained popularity among residential and commercial sectors. With a population of about 224 million people, Pakistan heavily depends on imported oil and liquefied natural gas, making it vulnerable to global price fluctuations.

Recent fuel shortages due to the US-Iran war and the closure of the Strait of Hormuz have prompted the government to seek alternative energy sources and introduce austerity measures.