What will it cost India's fertiliser industry to reach net zero?
What will it cost India's fertiliser industry to reach net zero?
India is the second-largest fertiliser producer in the world, accounting for ~20% of global production.
India is the second-largest fertiliser producer in the world, accounting for ~20% of global production.
Fertilisers play a vital role in increasing agricultural output.
Fertilisers play a vital role in increasing agricultural output.
Source: Fertilizer Association of India 2023
Source: Fertilizer Association of India 2023
Source: CEEW analysis
Source: CEEW analysis
Decarbonising the fertiliser industry will lead to import savings of ~USD 10 billion.
Decarbonising the fertiliser industry will lead to import savings of ~USD 10 billion.
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This is because ~60 per cent of the natural gas consumed in this sector is imported.
This is because ~60 per cent of the natural gas consumed in this sector is imported.
Source: IEEFA
Source: IEEFA
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Source: CEEW analysis
Source: CEEW analysis
The Indian fertiliser industry contributes ~25 million tonnes of CO2 annually.
The Indian fertiliser industry contributes ~25 million tonnes of CO2 annually.
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85% of the emissions can be attributed to the use of natural gas fuel and feedstock.
85% of the emissions can be attributed to the use of natural gas fuel and feedstock.
The remaining 15% is from electricity use.
The remaining 15% is from electricity use.
Source: CEEW analysis
Source: CEEW analysis
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What mitigation options can cut emissions in the fertiliser industry?
What mitigation options can cut emissions in the fertiliser industry?
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1. Shifting to green ammonia.
1. Shifting to green ammonia.
Source: CEEW analysis
Source: CEEW analysis
Currently, ammonia production accounts for ~95% of the emissions in this sector.
Currently, ammonia production accounts for ~95% of the emissions in this sector.
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Moving to greener alternatives can help reduce emissions by 151%, making the industry net carbon-negative..
Moving to greener alternatives can help reduce emissions by 151%, making the industry net carbon-negative.
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Source: CEEW analysis
Source: CEEW analysis
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2. Adopt energy efficient technologies that can result in a ~10% reduction in emissions intensity.
2. Adopt energy efficient technologies that can result in a ~10% reduction in emissions intensity.
Source: CEEW analysis
Source: CEEW analysis
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To achieve net-zero, we recommend that the fertiliser industry:
To achieve net-zero, we recommend that the fertiliser industry:
3. Sets up bioethanol plants near urea plants
3. Sets up bioethanol plants near urea plants
1. Blends green ammonia and promotes its use for the production of green urea ammonium nitrate and other nitrates
1. Blends green ammonia and promotes its use for the production of green urea ammonium nitrate and other nitrates
2. Incentivises the adoption of energy-efficient technologies
2. Incentivises the adoption of energy-efficient technologies
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Evaluating Net-zero for the Indian Fertiliser Industry
Evaluating Net-zero for the Indian Fertiliser Industry
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