Sri Lanka’s Tokyo Cement says factory running on own renewable energy
ECONOMYNEXT – Sri Lanka’s Tokyo Cement said its factory complex in Trincomalee is generating its own renewable energy and has achieved ‘energy independent’ status and can avoid the impact of changing electricity tariffs.
“The thoughtful design of its local manufacturing process to operate exclusively on renewable biomass energy played a significant role in effectively managing operational expenses. The Group’s 100% energy independent manufacturing process in Trincomalee remained unaffected by the substantial increases in electricity tariffs and fuel prices,” Tokyo told shareholders in the annual report.
The Group recorded a turnover of 49.8 billion rupees and a profit after tax (PAT) of 2.4 billion rupees for the financial year ending on March 31, 2024.
Tokyo Cement Group’s renewable energy generation programme was a key driver of the Group’s stable financial performance in the Financial Year 2023/24.
“Our self-sustaining, renewable energy generation initiative insulated the Group from sharp hikes in energy tariffs and fuel prices,” Managing Director S R Gnanam said.
By achieving complete energy independence and powering the entire Trincomalee manufacturing operation with renewable energy sources, the Group was insulated from operational cost increases caused by rising electricity tariffs and fuel prices during the year, according to its annual report.
At the beginning of the Financial Year, Tokyo Cement Power said it faced challenges in sourcing agricultural waste due to depleted output from the farming sector.
“However, this situation was resolved by the end of the first quarter, and the two power plants in Trincomalee fully met the electricity requirements of the Tokyo Cement factories.”
The Group also operates a 5MW Dendro power plant in Mahiyangana, in addition to two biomass power plants in Trincomalee, with a capacity of 10MW and 8MW each.
Tokyo Cement Power also generates 600KW of roof-top solar power in Mahiyangana.
“Tokyo Cement Group’s renewable energy generation initiative reinvests a major portion of its energy bill within the country instead of spending it on imported fossil fuels.”
The share closed up at 50.00 on Tuesday. (Colombo/Jul29/2024)
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