India's Agrochemical Sector Embraces Green Transformation with Renewables and Green Hydrogen
Key Ideas
- Indian agrochemical sector plans to integrate 11 GW of renewable energy by 2030, requiring a $7 billion investment for decarbonization.
- Fertilizer production, particularly urea, accounts for over 90% of emissions; green hydrogen is seen as a key solution to reduce emissions.
- Report highlights the potential for renewable energy usage to increase to 20% by 2030, with focus on green hydrogen, CCU, and bio-fertilizers.
- Despite opportunities, clear policy frameworks are needed to accelerate the sector's green transition and achieve net-zero targets in line with the Paris Agreement.
India's agrochemical manufacturing sector is poised for a significant green transformation as it plans to integrate up to 11 GW of renewable energy capacity by 2030, a move that requires an estimated $7 billion investment to decarbonize a traditionally fossil fuel-dependent industry. The sector, heavily reliant on fossil fuels for raw materials and energy needs, particularly in fertiliser production, is classified as a hard-to-abate sector. Over 90% of emissions within the sector originate from fertiliser production, with urea being a major contributor. However, there is optimism as the industry aims to increase renewable energy usage from 3% to 20% by 2030, with a focus on green hydrogen as a pivotal solution to reduce emissions in fertiliser manufacturing. The transition to green hydrogen could play a crucial role in curbing emissions, with projections indicating that 10% of hydrogen used in fertilisers will be green by 2030. Additionally, the report highlights other decarbonisation pathways such as carbon capture utilisation and the production of bio-fertilisers and bio-pesticides. While some Indian agrochemical companies have committed to net-zero targets aligned with the 2050 Paris Agreement goals, the sector as a whole requires clear policy frameworks to accelerate its green transition. JMK Research emphasizes the need for a dedicated emission reduction framework for the agrochemical sector to achieve significant decarbonisation. With strategic investments and supportive policies, the industry is well-positioned to contribute to India's broader climate goals by 2030, leveraging renewable energy, green hydrogen, and innovative technologies to build a sustainable future.
Topics
India
Renewable Energy
Sustainability
Decarbonisation
Emissions Reduction
Green Technologies
Agrochemical Industry
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