Aluminum industry earmarks $29 bn to meet India's carbon neutrality goal: Report

Aluminium Industry: A recent study conducted by the Council on Energy, Environment, and Water (CEEW) has shed light on the significant capital expenditure required by the Indian aluminium industry to achieve net-zero carbon emissions. According to the findings, an estimated additional investment of nearly Rs 2.2 lakh crore ($29 billion) would be necessary for this monumental transition.

The study emphasises the pivotal role renewable energy sources could play in curbing emissions, with the potential to offset 49 per cent of the industry's total emissions. However, the report also acknowledges the current limitations of renewable energy availability, underscoring the need for a robust backup plan to navigate intermittency issues.

India has set ambitious targets, committing to achieving net-zero emissions by 2070 and aiming for 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. Yet, such aspirations come with a hefty price tag. Transitioning the aluminium industry to net-zero emissions could escalate operational costs by 61 per cent, amounting to approximately Rs 26,049 crore ($3.5 billion) annually.

Despite India's relatively modest per capita aluminium consumption compared to global averages, the industry remains a significant emitter, spewing out 77 million metric tonnes of CO2 in 2019-20. Most emissions stem from electricity consumption within aluminium plants.

The study proposes various strategies to mitigate emissions, including enhancing energy efficiency in production processes and implementing waste heat recovery systems. However, avenues like increasing renewable energy adoption or carbon capture may elevate production costs further.

In addition to the aluminium sector, CEEW also launched a study on decarbonising the fertiliser industry, another vital contributor to India's economic landscape. With ambitious targets and substantial capital requirements, the road to carbon neutrality for these industries necessitates robust government support and infrastructural development to realise India's climate goals. Hemant Mallya, a fellow at CEEW, underscores the imperative for collaboration across sectors to drive these transformative changes.

(with PTI inputs)