Indian aluminium industry needs additional Rs 2.2 lakh crore to achieve net zero: CEEW

New Delhi: The Indian aluminium industry would require an additional capital expenditure of nearly Rs 2.2 lakh crore to achieve net zero carbon emissions.

According to an independent study first of its kind done by the Council on Energy, Environment and Water (CEEW) released Tuesday, stated that estimation of the cost of decarbonising this critical industry could be 61 per cent more expensive.

It mentioned that for decarbonising this industry would also lead to a yearly increase of Rs 26,049 crore in additional operating expenditure (OPEX).

The study further stated that the renewable energy (RE) power sources could abate 49 per cent of the total emissions from the industry.

It however added that, “A complete transition to RE is currently not feasible as it is intermittent in nature, and a backup will always be necessary in case of grid failure”.

Explaning about the study, Hemant Mallya, Fellow, CEEW, said, “In an effort to inform the decarbonisation of India’s hard-to- abate sectors, CEEW produced four reports on what it would take for the cement, steel, fertiliser, and aluminium industries to go net zero.

“A clear emerging message is the requirement for large amounts of capital and scaleup from various solution providers, including the renewable power, alternative fuels, and carbon storage and utilisation sectors” he added.

Sashi Mukundan, President, bp India and senior vice president, bp Group, said, “With an 8 per cent-plus economic growth path, Indian industry is seeing a growth trajectory like never before. Thisgrowth needs to happen in a responsible manner such that economic progress is balanced with minimising the climate impact.

Deepak Yadav, Programme Lead, CEEW, said, “Given the highly energy-intensive aluminiumproduction process and the expected growth in demand, decarbonising the sector will have a significant impact on India’s cumulative industrial emissions. We recommend incentivising renewable energy since the majority of aluminium smelting plants are in eastern states that do not have optimal wind power potential”.

Aluminium, a widely utilised metal and one of India’s s fastest-growing in terms of production, is predominantly used by the power sector. India’s per capita aluminium consumption is low at 2.5 kg (compared to the world average of 11 kg), the industry emitted nearly 77 million tonnes of CO2 (MtCO2) in 2019-20.

Electricity consumption by plants accounted for 80 per cent of the total emissions, while process emissions and fuel consumption accounted for the rest, the study said.