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

Fauji Cement Company Limited (FCCL) said its board had approved a project to install battery energy storage systems (BESS) with a combined capacity of 50 MWh and dedicated solar power capacity of 10 MW at two of its plants.

The listed company informed the Pakistan Stock Exchange (PSX) in a notice on Tuesday.

“The Board of Directors of Fauji Cement Company Limited has approved, through resolution by circulation, the installation of Battery Energy Storage Systems (BESS) of 25 MWh along with dedicated solar power setups of 5 MW each at the company’s Nizampur and Jhang Bahtar plants,” read the notice.

The project is expected to be completed within 10 months from its start date, the company said.

“The project is intended to store daytime solar energy in the BESS for discharge during evening peak hours, thereby reducing reliance on peak grid electricity, optimising the company’s energy costs and enhancing the company’s renewable energy capacity,” it added.

FCCL was incorporated in Pakistan as a public company in 1992 and commenced operations in 1993, focusing on the manufacturing and sale of various types of cement.

In FY25, the company expanded its solar capacity to 67.5 MW, meeting 90% of its packaging needs and contributing to energy efficiency.

There has been a growing shift towards alternative energy sources in Pakistan, especially solar, which has become increasingly popular among residential and commercial sectors.

The South Asian nation of about 224 million people depends heavily on imported oil and liquefied natural gas, leaving it vulnerable to global price swings.

Fuel shortages resulting from the ongoing US-Iran war and the effective closure of the Strait of Hormuz have prompted the government to scramble for alternative energy sources, while introducing austerity measures as well.