Decarbonization of Indian Industrial Sector (Highlights of the Publication)
Disclaimer:
© 2022,
Confederation of Indian Industry
All Rights reserved. This report is a part of CII - Godrej GBC effort to look at possible road map for decarbonization of Indian Industrial sector, supported by Danfoss. The document estimates the emission reduction possible for the industrial sector based on study of 5 major sectors – Cement, Iron and Steel, Paper and Pulp, Textile and Chemicals. The views/analysis expressed in this report do not necessarily reflect the views of CII and Danfoss. CII and Danfoss do not guarantee the accuracy of any data included in this publication nor does it accept any responsibility for the consequences of its use. While every care has been taken in compiling this publication, CII- Godrej GBC and Danfoss does not accept any claim for compensation, if any entry is wrong, abbreviated, omitted or inserted incorrectly either as to the wording space or position in the Document.
An Initiative Supported by Danfoss Industries Pvt. Ltd.
Table of Contents •
Decarbonization of Industrial Sector, Its relevance in Indian Context
•
India’s Primary Energy Consumption Profile
•
India’s Emission Profile
•
Analysis of Analysis – Leading Report on India’s Decarbonization or Low Carbon Approach
•
Analysis of Analysis – Conclusions from the 3 reports
•
Strategies and actions towards Decarbonization by various corporates in the country •
Corporate and Company Level Initiatives for Decarbonization – Examples
•
Summary of Results from Analysis of 5 Selected Sectors
•
Decarbonization Pathways for Indian Industrial Sector (5 selected sectors)
•
•
Indian Steel Sector
•
Cement Sector
•
Paper Sector
•
Textile Sector
•
Chemical Sector
Conclusions •
Key impact technologies
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Technological Road Map for Decarbonization
•
Investment Required for Key Technologies
•
Levers for decarbonizing Indian Industrial sector
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Interventions for Accelerating Decarbonization
Key Messages from the Publication Key Message 1: India has not only made strong Commitments towards Decarbonization but also has achieved significant results through various efforts Key Message 2: India’s journey towards Net Zero would be challenging as India’s GHG Emissions Itself would be peaking by 2040 s – Further Mitigation required to become NetZero by 2070 will be exponentially higher than historic performance Key Message 3: Voluntary Actions of these companies can result to an additional GHG emissions reduction of up to 1.95%, if followed by entire industrial sectors this can result in overall reduction of almost 5.6% of overall GHG emissions Key Message 4: Estimated Emission Reduction for entire Industrial Sector in Business as Usual and Deep Decarbonization could be around 15.47% and 29.01% respectively Key Message 5: Industrial Decarbonization -Energy Efficiency will play a major role by contributing 44% in BAU and 32% in Deep Decarbonization Scenario Key Message 6: Iron and Steel one of the hardest to abate sectors could reduce its emissions intensity by 16 % in BAU scenario and 24% in Deep Decarbonization ScenarioKey Decarbonization Summary
4
Messages from the Publication Key Message 7: Energy Efficiency, Material Circularity and Renewable Energy are the top levers contributing 40%, 30% and 20% respectively in Deep Decarbonization Scenario Key Message 8: Cement Sector – One of the most progressive sectors in the Indian Industrial sectors can reduce its overall emissions by 13.4% and 30.3% in BAU and Deep Decarbonization scenarios Key Message 9: Circularity and Material Efficiency Measures like Improving Clinker factor improvement, increasing additives in overall cement manufacturing will play a huge role in decarbonization efforts for Cement Sector (33% in BAU and 28% in Deep Decarbonization Pathways) Key Message 10 : Paper is one of the sector which has a huge potential in terms of becoming carbon neutral in near future. Some of the Indian companies like ITC PSPD, SPB are already Carbon Positive Key Message 11 : Energy Efficiency remain to play an important role in the overall Paper and Pulp sector decarbonization. Energy Efficiency lever can contribute to around 62% reduction in BAU Scenario and around 36% in Deep Decarbonization Scenario for decarbonization journey of paper sector Decarbonization Summary
5
Key Messages from the Publication Key Message 12: Energy Efficiency and Biomass Utilization will play an important role in Textile Industry Decarbonization While Energy Efficiency can contribute to 53 % in BAU Scenario and 46 % in deep decarbonization Scenario, Biomass and utilization of other cleaner fuels, could further contribute to 29% in BAU scenario and 25 % in Deep Decarbonization Scenario Key Message 13: Chemical sector has significant amount of process emissions making it really challenging to decarbonization, to further accelerate decarbonization Hydrogen and CCUS will have to play a very significant role in overall Decarbonization of this sector Key Message 14: Many of the futuristic technologies like Hydrogen, CCUS, Fuel Cells etc. are still in their nascent stages with high-cost implications, On one hand these technologies require a huge push on the policy front, but the Industry leaders also need to come forward and demonstrate its commitment towards adoption of these
Decarbonization Summary
6
Decarbonization of Industrial Sector, Its relevance in Indian Context
Paris Agreement 2015 Member Countries adopted target limiting the overall temperature rise to below 2 Deg C (preferable 1.5 Deg C) compared to preindustrial levels 33-35 % reduction in emission intensity of its GDP by 2030 from 2005 levels 40% of its installed capacity to be renewable (or nuclear) by 2030 India also plans to increase its tree cover to create an additional cumulative sink of 2500 MtCO2e by 2030
Decarbonization Summary
7
India’s 5 Commitment ‘Panchamrit’ made at COP26
India will achieve Net Zero by 2070
India will bring itsnon-fossil energy capacity to 500 GW by 2030 India will bring its economy’scarbon intensity down to 45 per cent by 2030
M Narendra Modi at the COP26 summit in Glasgow on 1 November 2021
India will fulfill50 per centof itsenergy requirement through renewable energy by 2030 India willreduce 1 billion tons of carbon emissionsfrom the total projected emissionsby 2030
Decarbonization Summary
8
Decarbonization of Industrial Sector, Its relevance in Indian Context – Primary Energy Consumption Profile Primary Energy Consumption already doubled since 2000’s (from 440 Million TOE to 880 Million TOE
Expected to again double in the next 20 years to around 1900 Million TOE , 1500 Million TOE by 2030 itself
Despite the increase in absolute numbers –the per capita energy demand is only 36% of world average and Energy Intensity has also increased
Decarbonization Summary
9
Decarbonization of Industrial Sector, Its relevance in Indian Context – Primary Energy Consumption Profile
India’s Net GHG Emissions increased by more than 50% from 2005 levels
India has already achieved its emission intensity of GDP reduction target for 2020-21 of 24%
India’s per capita CO2 emissions at 1.6 tons of CO2 are well below the world average of 4.4 tons of CO2
India historically also has much lower cumulative CO2 emissions (1750 onwards -US –25% , EU –28%, China –13% , India –3%)
Decarbonization Summary
10
Decarbonization of Industrial Sector, Its relevance in Indian Context – Emission Profile (2016 – Biennial Report) Sector
CO2 Equivalent Emissions (billion Tons)
Energy
2.129
IPPU
0.226
Agriculture
0.408
LULUCF
-0.307
Waste
0.075
Total without LULUCF Total with LULUCF Estimated Industrial Emissions *
2.83 2.53
1.194 Billion Tons
* Including Emissions from Industrial Electricity Consumption from energy subsection, manufacturing and industries emission from energy subsection, IPPU, this includes refinery but excludes manufacturing of solid fuels
Decarbonization Summary
11
Key Message
“India has not only made strong Commitments towards Decarbonization but also has achieved significant results through various efforts”
Decarbonization Summary
12
Analysis of Analysis – Leading Report on India’s Decarbonization or Low Carbon Approach
Decarbonization Summary
13
Analysis of Analysis – Conclusions from the 3 reports
India’s emission to peak around 2040
Primary Energy demand expected to be on rise and may double by 2040
India’s net zero emissions pathways will be challenging as the rate of decrease of emissions required to achieve the net zero by 2050 onwards will have to be exponentially high compared to historic trends
Net Zero till 2050 – challenging in BAU scenario •
Decarbonization Summary
Mitigation needed to achieve net zero exponentially higher than historic performance
Renewable Energy & Energy Efficiency play important role •
RE deployment expected to double (or even triple)
•
30% of industrial emission mitigation - dependent on EE measures
Overall, all the pathways leading to net zero need to have huge investments made into some of the key technologies like CCUS, Energy Storage, Waste Heat Recovery etc.
14
Key Message “India’s journey towards Net Zero would be challenging as India’s GHG Emissions Itself would be peaking by 2040s – Further Mitigation required to become NetZero by 2070 will be exponentially higher than historic performance”
Decarbonization Summary
15
Strategies and actions towards Decarbonization by various corporates in the country
Potential Impact of Corporate Climate Action in India Selected Companies – 50 companies selected across various energy intensive and non intensive sectors such as Engineering, Metals, Pulp and Paper, Chemicals, Fast Moving Consumer Goods (FMCG), Services and Cement sectors
Analysis of 50 Companies from various sectors
Sector-wise contribution as a percentage of the total emissions reduction impact of the 50 companies in 2030 Decarbonization Summary
17
GHG Reduction Trend for Selected 50 Companies
Fig Shows the annualized reduction in GHG emission intensity for the companies included in the analysis (grouped by sectors)
Annualized GHG intensity reduction ranging from 1.24% to 9.44 %
Decarbonization Summary
•
Cement – 1.24 %
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Chemicals and FMCG – 4 %
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Engineering – 5.48 %
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Metals, Paper and Pulp – 3.02%
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Oil and Gas – 1.60 %
•
Services – 9.44 %
Reduction for energy intensive sectors shows lower GHG reduction compared to non energy intensive sector
18
Aggregate impact of voluntary climate initiatives by Indian companies Year
Total Emissions in Reference Scenario (MT CO2e)
Total Emissions with Impact of Voluntary Initiatives (MT CO2e)
Emissions Reduction Impact (MT CO2e)
Emissions Reduction Impact (%)
2020
312.53
294.54
17.99
5.76%
2030
689.40
599.52
89.88
13.04%
Voluntary Actions of these companies can result to an additional GHG emissions reduction of up to 1.95 %, if followed by entire industrial sectors this can result in overall reduction of almost 5.6% of overall GHG emissions Decarbonization Summary
19
Corporate and Company Level Initiatives for Decarbonization - Examples
Corporate/ company level initiatives for decarbonization – Example (JSW Steel Ltd.) JSW Steel limited
Decarbonization Summary
JSW Steel and its subsidiaries together account for ~23% of India’s steel production
Internal Carbon Price - JSW Steel has adopted a shadow internal carbon price of USD 20/ton
Targets for a better tomorrow! - JSW Steel, as well as JSW Energy, has set-up long term internal targets for all the sustainability KPIs across all locations
JSW Steel, due to its consistent and comprehensive CO2 emissions data disclosure, has also been ranked 1 by the CDP Steel Report 2019 in the Data Transparency rankings.
JSW Steel Company-wide target for specific energy/consumption for 2030 5.91 (GCal/tcs) Company-wide target for specific GHC emmissions for 2030 (tCO2e/ 2.00 tcs) Company-wide target for specific freshwater consumption for 2030 2.41 (m3/tcs) Company-wide target for waste 100.00 recycling for 2030 (%) To achieve a ‘no net loss’ of biodiversity at all our currently operating sites by 2030
21
Corporate/ company level initiatives for decarbonization – Example (Dalmia Cement (Bharat) Ltd.) Dalmia cement (Bharat) Limited
First heavy-industry globally to announce carbon negative targets •
Decarbonization Summary
Aiming to become carbon negative by 2040
Ranked 1st in global cement sector by CDP on business readiness for a lowcarbon economy transition
Usage of 100% renewable power under fossil free electricity initiative - 2030 (RE 100)
1st Cement Company to Join – EP 100 and RE100 •
Double energy productivity - 2030 (EP 100)
•
Carbon Capture and Utilisation (CCU) for process emissions & Carbon Sequestration - 2040
22
Corporate/ company level initiatives for decarbonization – Example (ITC PSPD) ITC PSPD
Decarbonization Summary
Carbon positive (15 consecutive years)
Renewable energy share – 48%
Water positive (18 consecutive years), 26.5% reduction in specific GHG intensity in last 3 years
3 times carbon positive
Green cover for over 8,00,000 acres of land
Targets committed (by 2028-29 - baseline 2018 -19) •
27% reduction in SEC
•
14% increase in RE share
•
47% reduction in GHG intensity
•
36% reduction in specific water consumption
23
Corporate/ company level initiatives for decarbonization – Gujarat Fluorochemicals Ltd. and Tata Chemicals
Decarbonization Summary
Gujarat Fluorochemicals Ltd & Tata Chemicals are a part of the 1000+ companies registered under SBTi
24
Key Message “ Voluntary Actions of these companies can result to an additional GHG emissions reduction of up to 1.95%, if followed by entire industrial sectors this can result in overall reduction of almost 5.6% of overall GHG emissions ”
Decarbonization Summary
25
Key Message
“Estimated Emission Reduction in Business as Usual and Deep Decarbonization could be around 15.47% and 29.01% respectively”
Decarbonization Summary
26
Key Message
“Energy Efficiency will play a major role by contributing 44% in BAU and 32% in Deep Decarbonization Scenario”
Decarbonization Summary
27
Decarbonization pathways for Indian Steel Sector
Estimated Steel Production: Crude Steel Production (million tons)
Decarbonization Summary
29
Estimated Specific Energy Consumption (Projected Scenarios) in GCal/TCS
Decarbonization Summary
30
Estimated Crude Steel Production (BF-BOF, EAF-IF route)
Decarbonization Summary
31
Estimated Projections - Impact of Various Levers
* Low Demand Scenario Decarbonization Summary
32
Decarbonization Conclusion for Iron and Steel Sector
Decarbonization Summary
Implementation of Best Available technologies can help the iron and steel sector to reduce the overall GHG emissions by 9.6% in deep decarbonization scenario
Many of the technologies are still not commercialised yet, and further need huge impetus in form of R&D, Investment and Financing support from both governments as well as private players for them to mature soon enough to add further pace to overall decarbonization process
Energy Efficiency (40%), Circularity and Material Efficiency (30%), Renewable Energy (20%) will play a major role in the overall decarbonization of Iron and Steel Sector (Deep Decarbonization)
Scrap Utilization (Circularity and Material Efficiency) has a huge scope with expected scrap utilization of more than 50 million tons by 2030
CCUS and Green Hydrogen have great potential but due to lack of commercialised technology and high costs their impact seems to be less but that would increase after 2040s
33
Key Message
“ Iron and Steel one of the hardest to abate sectors could reduce its emissions intensity by 16 % in BAU scenario and 24% in Deep Decarbonization Scenario”
Decarbonization Summary
34
Key Message
“Energy Efficiency, Material Circularity and Renewable Energy are the top levers contributing 40%, 30% and 20% respectively in Deep Decarbonization Scenario”
Decarbonization Summary
35
Decarbonization pathways for Cement Sector
Estimated projections: cement production (million tons)
Cement production : Estimates CII Database Decarbonization Summary
37
Estimated projections: Clinker Production (Million Tons)
Decarbonization Summary
38
Estimated projections: emission intensity (Tons of CO2/ ton of cement)
Decarbonization Summary
39
Estimated projections: Emission (Million Tons of CO2)
Decarbonization Summary
40
Estimated projections: SEC Projection
Thermal SEC
Decarbonization Summary
Electrical SEC
41
Baseline Vs Deep Decarbonization – Emission Intenisty
Decarbonization Summary
42
Estimated Projections - Impact of Various Levers
Decarbonization Summary
43
Decarbonization Conclusion for Cement Sector
Decarbonization Summary
Energy Efficiency will play a lesser role in the cement sector as the sector has already matured enough, Already the sector with the help of various BATs in Energy efficiency has reduced its overall emission foot print from 1.12 tCO2/t of cement in 1996 to around to 0.67 tCO2/t of Cement in present levels
Advanced technologies remain to play an important role in the overall cement sector decarbonization but would need a bigger push from various stakeholders for deeper penetration
Circularity and Material Efficiency Measures like Improving Clinker factor improvement, increasing additives in overall cement manufacturing will play a huge role in decarbonization efforts ( 33% in BAU and 28% in Deep Decarbonization Pathways)
Electrification and Use of Renewable Energy will contribute to around 26% in BAU and 21% in Deep Decarbonization pathways. This would include utilization more clean energy from Solar PV plants and Wind based plants for reducing and offsetting fossil based power generations
The sector has already progressed well in the Alternate fuels department by increased utilization of MSW, RDF and other hazardous wastes and hence biomass and alternate fuels will contribute to 17% in BAU and 13% in Deep Decarbonization Pathways
44
Key Message
“Cement Sector – One of the most progressive sectors in the Indian Industrial sectors can reduce its overall emissions by 13.4% and 30.3% in BAU and Deep Decarbonization scenarios”
Decarbonization Summary
45
Key Message “Circularity and Material Efficiency Measures like Improving Clinker factor improvement, increasing additives in overall cement manufacturing will play a huge role in decarbonization efforts (33% in BAU and 28% in Deep Decarbonization Pathways)”
Decarbonization Summary
46
Decarbonization pathways for Paper Sector
Estimated projections – Paper production and par capita consumption
Decarbonization Summary
48
Estimated projections BAU Vs Deep Decarbonization - Emission Intensity
Decarbonization Summary
49
Estimated projections - Emission Intensity (Impact of Various Levers)
Decarbonization Summary
50
Decarbonization Conclusion for Paper and Pulp Sector
Decarbonization Summary
Paper is one of the sector which has a huge potential in terms of becoming carbon neutral in near future. Some of the Indian companies like ITC PSPD, SPB are already Carbon Positive – Carbon Sequestration through Tree Plantation being a major reason for the same
Energy Efficiency remain to play an important role in the overall paper and pulp sector decarbonization. Energy Efficiency lever will contribute to around 62% reduction in BAU Scenario and around 36% in Deep Decarbonization Scenario for decarbonization journey of paper sector
The sector has a huge potential of using clean fuels like biomass and that will contribute to around 18% reduction in BAU scenarios and 25% in Deep Decarbonization scenario
Recycled paper has a lower specific energy consumption when compared to the wood based or agro based paper production (almost 3 times lower in wood based and around 2.5 times lower in agro based). Increasing production and utilization of recycled paper can hence play an important role in overall decarbonization journey. Hence circularity and material efficiency will contribute 15 % in BAU and 17% in Deep Decarbonization Scenario
Many of the companies are already moving towards renewable energy like solar, wind for paper sector and this will play a role of around 5 % in BAU and 7% in Deep Decarbonization scenario
51
Key Message
“Paper is one of the sector which has a huge potential in terms of becoming carbon neutral in near future. Some of the Indian companies like ITC PSPD, SPB are already Carbon Positive”
Decarbonization Summary
52
Key Message “Energy Efficiency remain to play an important role in the overall paper and pulp sector decarbonization. Energy Efficiency lever can contribute to around 62% reduction in BAU Scenario and around 36% in Deep Decarbonization Scenario for decarbonization journey of paper sector” Decarbonization Summary
53
Decarbonization pathways for Textile Sector
Specific Energy Consumption – Textile Industry Unit
SEC various sections Average
kWh/kg
5.375
kWh/kg
1.349
kWh/kg
0.461
kWh/kg
3.429
kcal/kg
1231.110
kWh/kg
2.126
kWh/kg
1.499
kcal/kg
7170.670
kWh/kg
1.714
kcal/kg
8564.530
Electrical UKG (Lycra Fabric)
kWh/kg
1.211
Thermal SEC (Lycra Fabric)
kcal/kg
4517.770
kWh/kg
1.007
kcal/kg
3630.360
Parameter Electrical UKG up to winding (Yarn-40s count) Electrical UKG (Open-end Yarn) Electrical UKG (Fiber Dyeing) Electrical UKG (Weaving)@ 60 PPI Thermal SEC (Weaving)@ 60 PPI Electrical UKG (Knitting) Electrical UKG (Cotton based fabric) Thermal SEC (Cotton based fabric) Electrical UKG (Polyester cotton based fabric) Thermal SEC (Polyester cotton based fabric)
Electrical UKG (Wool based fabric) Thermal SEC (Wool based fabric) Decarbonization Summary
55
Estimated Specific Energy Consumption (BAU Vs Deep Decarbonization)
Decarbonization Summary
56
Estimated projections – Emission Intensity (BAU Vs Deep Decarbonization)
Decarbonization Summary
57
Estimated Specific Energy Consumption – Impact of various Levers
Decarbonization Summary
58
Decarbonization Conclusion for Textile Sector
Decarbonization Summary
Energy Efficiency and Renewable Energy will play an important role in Textile sector’s overall Decarbonization journey.
Energy Efficiency will contribute to 53 % in BAU Scenario and 46 % in deep decarbonization Scenario
Renewable Energy will contribute to 18% in BAU Scenario and 29 % in deep decarbonization Scenario
The sector also has a significant potential in terms of Biomass and utilization of other cleaner fuels , this could further contribute to 29% in BAU scenario and 25 % in Deep Decarbonization Scenario
Both the scenarios – the latest technologies like CCUS, Hydrogen there is little or no significant contribution in this sector
59
Key Message “Energy Efficiency and Biomass Utilization will play an important role in Textile Industry Decarbonization While Energy Efficiency can contribute to 53% in BAU Scenario and 46% in deep decarbonization Scenario, Biomass and utilization of other cleaner fuels, could further contribute to 29% in BAU scenario and 25% in Deep Decarbonization Scenario” Decarbonization Summary
60
Decarbonization pathways for Chemical Sector
Estimated projections : (Soda Ash, Carbon Black and Ethylene Production – Million Tons)
Decarbonization Summary
62
Estimated emission intensity (Tons of CO2/ ton of soda ash): projected scenarios
Decarbonization Summary
63
Estimated emission intensity (Tons of CO2/ ton of Carbon Black): projected scenarios
Decarbonization Summary
64
Estimated emission intensity (Tons of CO2/ ton of Ethylene): projected scenarios
Decarbonization Summary
65
Estimated emission (Million Tons of CO2): Projected Scenarios
Decarbonization Summary
66
Estimated emission Projections – Selected Chemical Sector Combined
Decarbonization Summary
67
Decarbonization Conclusion for Chemical Sector
Decarbonization Summary
Chemical sector has significant amount of process emissions making it really challenging to move towards low carbon path or deep decarbonization
Because of the above reason energy efficiency and renewable energy (to certain extent ) are the only two major levers contributing in the business as usual scenario
To achieve higher emission reduction in the selected sector significant contribution should come from CCUS and Hydrogen as evident from the impact of levers in the deep decarbonization scenario
68
Key Message “Chemical sector has significant amount of process emissions making it really challenging to decarbonization, to further accelerate decarbonization Hydrogen and CCUS will have to play a very significant role in overall Decarbonization of this sector”
Decarbonization Summary
69
Summary of Results from Analysis of 5 Selected Sectors
Estimated Avoided Emissions from 5 Selected Sector from Baseline Year to Year 2040 Sector Name
Baseline Emissions
Emission in 2040 with no change in Emission Intensity
Emission in BAU sector (2040)
Emission in Deep Decarbonization Scenario (2040)
Million Tons of CO2
Decarbonization Summary
Baseline Vs BAU (Avoided Emission %)
Baseline Vs Deep Decarbonization (Avoided Emission%)
(Avoided Emission %)
(Avoided Emission %)
Cement Sector
220.43
378.44
327.61
263.78
13.43
30.30
Iron and Steel Sector
289.13
594.77
498.62
451.23
16.16
24.13
Paper and Pulp Sector
30.59
89.48
69.65
35.11
22.15
60.76
Textile Sector
18.46
39.86
32.05
29.44
19.58
26.14
Chemical Sector
33.51
74.68
66.87
54.42
10.46
27.13
Total Emissions
592.12
1177.22
994.81
833.98
15.49
29.16
71
Estimated Emission Reduction for Entire Industrial Sector
Decarbonization Summary
72
Decarbonization
Decarbonization Summary
Energy Efficiency will play a major role in the overall decarbonization journey of Indian Industrial sector, In BAU and Deep Decarbonization scenarios it contributes to around 45.9 % and 31% respectively to the overall reduction in GHG emissions. In terms of % contribution though there is reduction from Baseline to Deep Decarbonization scenario, but in absolute terms it still is contributing more than the baseline scenario
Because of the above reason energy efficiency and renewable energy (to certain extent ) are the only two major levers contributing in the business as usual scenario
To achieve higher emission reduction in the selected sector significant contribution should come from CCUS and Hydrogen as evident from the impact of levers in the deep decarbonization scenario
73
Conclusions
Impact on GHG Mitigation
Technology Penetration
Decarbonization of Indian Industrial sector – Key impact technologies
Futuristic Technologies < 2% penetration
Ex - Hydrogen, CCUS, Fuel Cells
Innovative and High Impact Technologies – 5% penetration
Ex – Low Temperature Waste Heat Recovery
Adoption of best Available technologies – 30% penetration
Ex – Coke Dry Quenching , Sinter waste heat recovery
Adoption of best Available technologies– 60% penetration
Ex – Automation, Industry 4.0
Best performers
Industry Leaders Average performers Rest of the industries
Traditional energy saving measures – 100% penetration
Ex – Energy Efficient Fans, Pumps, Motors
Futuristic Technologies – Require Significant Policy Push from government to reduce the cost of technology adoption , also the industry leaders and best performers need to show real commitment towards their adoption for the others to follow
Decarbonization Summary
75
Technological Road Map for Decarbonization
Adoption of best practices and Traditional Energy efficiency measures
Adoption of best Technologies (RE, WHR) New plants adopting energy efficiency by design Pilots and demonstration of H2, CCUS, Fuel Cells, Energy Storage
Adoption of H2, CCUS, Fuel Cells, Storage by selected units
Adoption of H2, CCUS, Fuel Cells, Storage by selected units
2015
Decarbonization Summary
2020
2025
2030
2035
2040
2050
76
Investment Required for Key Technologies
Decarbonization Summary
77
Key Message “ Many of the futuristic technologies like Hydrogen, CCUS, Fuel Cells etc. are still in their nascent stages with high-cost implications, On one hand these technologies require a huge push on the policy front, but the Industry leaders also need to come forward and demonstrate its commitment towards adoption of these technologies” Decarbonization Summary
78
Interventions for Accelerating Decarbonization
Strengthening PAT Scheme
Incorporating EE as a mandatory criteria in Public/ Industry Procurement guidelines
Promoting EE through Technology Innovations
Developing Ecosystem for EE Financing
Replicating Flexible RE policies in states
Strengthening REC Mechanism
Decarbonizing Coal based Power – Supercritical Power Plants, Biomass cofiring, phasing old and inefficient plants
Higher focus on electrification of key processes and technologies from various industrial sectors
Developing policies to promote Circularity and Resource Efficiency
Promoting Increased AFR in Cement, Scrap utilization in Steel Sector
Promoting Green Public Procurement
Extended Producers Responsibility
Creation of RE business models – RE products, services, efficient packaging
Tax Exemptions on recycled products and SOPs on Eco Labelled Products
Energy Efficiency
Electrification and Use of Clean Energy – Renewable Energy (Solar, Wind and others)
Circularity and Material Conservation
Decarbonization Summary
79
Interventions for Accelerating Decarbonization
Biomass, Hydrogen and Other Zero Carbon Fuels
Carbon Capture Utilization and Storage
Decarbonization Summary
Incentivizing Stakeholders like farmer, Poultry and Dairy industries, Municipalities for Biomass Utilization
Promoting Alternate Fuel Utilization, Biomass Cofiring
Promoting ethanol blending
Hydrogen – Tax Waivers for Electrolysers, electricity duty on RE for Hydrogen production
Promoting hydrogen blending in CNG
Carbon Pricing / Carbon Tax
Technology Transfer
R&D, Pilots
Suitable Carbon pricing mechanism to make CCS profitable
Policy level Interventions from government – subsidies etc.
Significant investment and financing by private sector
80
Confederation of Indian Industry The Confederation of Indian Industry (CII) is a non-government, not-for profit, industry-led and industry-managed organization, playing a proactive role in India’s development process. Founded in 1895, India’s premier business association has around 8000 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 240 national and regional sectoral industry bodies. CII – Sohrabji Godrej Green Business Centre (CII – Godrej GBC), a division of Confederation of Indian Industry (CII) is India’s premier developmental institution, offering advisory services to the industry on environmental aspects and works in the areas of Green Buildings, Energy Efficiency, Water Management, Renewable Energy, Green Business Incubation and Climate Change activities. CII-Godrej GBC works closely with the stakeholders in facilitating India emerge as one of the global leaders in Green Business by the year 2022. CII – Godrej GBC in association with Danfoss Industries Pvt. Ltd. as a part of this study looked at possible emission reduction of the Indian Industrial sector under various low carbon scenarios based on the various low carbon levers like Energy Efficiency, Electrification and Renewable Energy, Biomass and other zero carbon fuel utilization, Circularity and Material efficiency and Advanced Technologies like CCUS and others.
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