Aluminium Industry Needs Rs 2.2 Lakh Cr for Net-Zero: Study
By Rediff Money Desk, NEWDELHI Apr 30, 2024 17:38
India's aluminium sector requires a substantial Rs 2.2 lakh crore investment for achieving net-zero emissions, according to a study by CEEW. The study explores green energy solutions, decarbonization costs, and potential emission reduction strategies for the industry.
New Delhi, Apr 30 (PTI) The aluminium sector in India would need an additional capital expenditure (capex) of about Rs 2.2 lakh crore to attain net-zero carbon emissions, an independent study on Tuesday said.
The study released by the Council on Energy, Environment and Water (CEEW) said that green energy can abate 49 per cent of the total emissions from the industry.
A complete transition to renewable is not feasible at the moment as it is intermittent in nature, and backup will always be necessary in case of grid failure, it said.
Net-zero aluminium could be 61 per cent more expensive, the study said, adding that decarbonising this industry would also lead to a yearly increase of Rs 26,049 crore in additional operating expenditure, as per the study.
Although the country'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 in 2019-20, it said.
Electricity consumption by plants accounted for 80 per cent of the total emissions, while process emissions and fuel consumption accounted for the rest.
Aluminium and fertiliser are key industries for India's economic growth, and significant government support will be necessary to build the infrastructure, such as power grid and pipelines, to decarbonise them and meet the country's climate goals, Hemant Mallya, Fellow, CEEW, said.
Energy efficiency in alumina refining and aluminium smelting and waste heat recovery through electrolysis off-gas can reduce emissions without increasing the cost of aluminium, the study said.
However, these technologies can only abate 8 per cent of the total emissions, it pointed out, adding, all the remaining carbon abatement measures, such as using renewable energy and carbon capture, have a positive marginal abatement cost.
The study released by the Council on Energy, Environment and Water (CEEW) said that green energy can abate 49 per cent of the total emissions from the industry.
A complete transition to renewable is not feasible at the moment as it is intermittent in nature, and backup will always be necessary in case of grid failure, it said.
Net-zero aluminium could be 61 per cent more expensive, the study said, adding that decarbonising this industry would also lead to a yearly increase of Rs 26,049 crore in additional operating expenditure, as per the study.
Although the country'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 in 2019-20, it said.
Electricity consumption by plants accounted for 80 per cent of the total emissions, while process emissions and fuel consumption accounted for the rest.
Aluminium and fertiliser are key industries for India's economic growth, and significant government support will be necessary to build the infrastructure, such as power grid and pipelines, to decarbonise them and meet the country's climate goals, Hemant Mallya, Fellow, CEEW, said.
Energy efficiency in alumina refining and aluminium smelting and waste heat recovery through electrolysis off-gas can reduce emissions without increasing the cost of aluminium, the study said.
However, these technologies can only abate 8 per cent of the total emissions, it pointed out, adding, all the remaining carbon abatement measures, such as using renewable energy and carbon capture, have a positive marginal abatement cost.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.67 ( -4.29)
- 67675345
- Vodafone Idea L
- 7.34 ( -0.41)
- 39063581
- AvanceTechnologies
- 0.96 (+ 4.35)
- 22450285
- Standard Capital
- 1.11 (+ 9.90)
- 21182942
- IFL Enterprises
- 1.01 ( -3.81)
- 14393443
MORE NEWS
Delhi Airport Low Visibility Procedures | DIAL...
Delhi airport operator DIAL confirms low visibility procedures are in place due to high...
Zee Entertainment Raises Targets for CEO Punit...
Zee Entertainment's board has set higher performance targets for CEO Punit Goenka's...
IMF Team Reviews Sri Lanka's Economic Reform...
The IMF team has arrived in Sri Lanka to conduct the third review of the USD 3 billion...