Renewables can cut 17% of heavy industry emissions

Greening electricity use can reduce the 2030 emissions from India’s heavy industries by 17%, says report. India’s heavy industries require 120 GW of dedicated renewable energy capacity by 2030.

Renewables-based electrification can play a crucial role in avoiding 17 per cent of the anticipated carbon emissions from India’s heavy industry by 2030, according to a new report from the energy think tank Ember.

This report indicates possible near and long-term strategies to smash emissions as India negotiates with the EU bloc on mechanisms to comply with the Carbon Border Adjustment Mechanism (CBAM). CBAM is a regulatory framework that imposes a carbon tariff on imports to the EU.

To fully decarbonise its electricity use and remain competitive in the global market, India’s heavy industries require 120 GW of dedicated renewable energy capacity by 2030.

The report focuses on the steel, cement, petrochemicals, aluminum, and ammonia sectors. Decarbonising these emission-intensive “heavy” industries can significantly benefit both India’s industrial sector and renewable energy ecosystem.

Currently, 11 per cent of energy consumption in these heavy industries comes from electricity, with the rest from fossil fuel-based thermal energy.

Based on industry growth projections, electricity demand for heavy industries is expected to rise by 45 per cent.

Meeting this increased demand with renewable energy could help to avoid  180 million tons (Mt) of CO2, equivalent to the total annual emission of the Netherlands.

For the deep decarbonisation of industries in the long run, the report finds that it is crucial that key technologies to electrify thermal processes become commercially viable. If these new technologies and the government’s green hydrogen mission succeed, the share of electricity in the industrial energy mix could triple by 2050, reaching approximately 700 GW and avoiding 737Mt of emissions.

However, advancing these technologies to achieve commercial viability and widespread deployment remains a challenge, adds the report.