Green Revolution: India's Agrochemical Sector to Embrace Renewable Energy and Green Hydrogen by 2030
Key Ideas
- India's agrochemical sector aims to integrate 11 GW of renewable energy capacity by 2030, requiring a $7 billion investment.
- Green hydrogen adoption is highlighted as crucial for decarbonization, with an estimated 10% of hydrogen in fertilizers to be green by 2030.
- Other pathways like carbon capture utilization (CCU) and increased production of bio-products are also emphasized for sector decarbonization.
- Recommendation for a dedicated emission reduction framework by the government to set green adoption targets and promote net-zero goals.
The agrochemical manufacturing sector in India is on the path towards decarbonization by embracing renewable energy and green hydrogen. A report by JMK Research projects that the sector will integrate up to 11 GW of renewable energy capacity by 2030, necessitating a significant investment of $7 billion. This move is crucial as the agrochemical industry heavily relies on fossil fuels for raw materials and energy, leading to high emissions. Over 90% of emissions in the sector stem from fertiliser production, with urea playing a major role. To combat this, the sector aims to increase the share of renewable energy in electricity consumption from the current 3% to 20% by 2030, translating to approximately 1.7 GW of additional renewable energy capacity.
The report underlines the importance of adopting green hydrogen in the sector's decarbonization journey. By transitioning from natural gas to green hydrogen for ammonia production, emissions can be significantly reduced. It is estimated that by 2030, around 10% of hydrogen used in fertilizers will be green. Additionally, strategies like carbon capture utilization (CCU) and the production of bio-products such as bio-fertilisers and bio-pesticides are identified as critical pathways for reducing emissions further.
The report also sheds light on the fact that many agrochemical companies in India have yet to set net-zero targets, although some are aligning with the 2050 timeline outlined in the Paris Agreement. As technologies like green ammonia and green hydrogen advance, more companies are expected to commit to net-zero goals. JMK Research recommends the development of a dedicated emission reduction framework by the government to establish green adoption targets and facilitate the sector's transition towards sustainability.