The Board of Directors of Lucky Cement Limited (PSX: LUCK) has approved to undertake a 28.8 MW captive wind power project at its Karachi plant, the company informed the Pakistan Stock Exchange on Monday.
The project is expected to be completed by the end of FY 2024. Moreover, the Board has also approved to undertake solar power projects, of 6.3 MW and 2.5 MW at the Company’s Karachi and Pezu plants respectively, which are expected to be completed by Q3 of FY 2024.
These solar power projects are in addition to the 25 MW and 34 MW solar power projects commissioned recently at Karachi and Pezu plants respectively, as per the filing.
The estimated cost of these upcoming projects is Rs. 11 billion. The filing said the contribution of renewable energy projects in its power mix will significantly increase after the completion of the above-mentioned projects.
According to Topline Securities, a significant portion will be financed through equity as the company currently holds Rs. 26 billion in cash and cash equivalents as of June 2023.
The Company’s initiatives for investment in renewable energy projects will play a key role in cost savings as well as the reduction of the country’s reliance on imported fuel.
LUCK’s BoD has also authorized the Company to evaluate participation in the equity of Lucky Core Ventures (LCV), along with other companies of the Yunus Brothers Group.
LCV is a wholly-owned subsidiary of Lucky Core Industries Limited, a subsidiary of the Company, and has been set up to act as a holding company in respect of future growth projects of LCI. LCV has recently, on May 2, 2023, published a Public Announcement of Intention (PAI) to acquire approximately 75.01 percent shareholding of Lotte Chemical Pakistan Limited (PSX: LOTCHEM). This deal is still pending.
The Company’s participation in the equity of LCV is subject to completion of satisfactory due diligence and obtaining applicable regulatory and Board approvals.