India’s agrochemical manufacturing sector is gearing up for a major green transformation by planning to integrate up to 11 GW of renewable energy (RE) capacity by 2030, reveals a report by JMK Research. The ambitious transition will require an estimated investment of $7 billion to decarbonize a traditionally fossil fuel-dependent industry.
Fertiliser Production Drives Emissions
Agrochemicals such as fertilisers, biostimulants, and pesticides are classified as hard-to-abate sectors due to their heavy reliance on fossil fuels for raw materials and energy needs. The report highlights that over 90% of emissions within this sector originate from fertiliser production—particularly urea. Although pesticides have a higher energy intensity per unit, their overall emissions are comparatively lower because of smaller production volumes.
Current Renewable Energy Usage and Growth Potential
At present, renewable energy accounts for only about 3% of the electricity consumed by the agrochemical industry. JMK Research projects that this share could rise to 20% by 2030, necessitating an additional 1.7 GW of renewable energy capacity. This shift represents a critical early step towards meaningful sectoral decarbonisation.
Green Hydrogen: A Game Changer
Green hydrogen emerges as a pivotal solution for reducing emissions in fertiliser manufacturing. Currently, ammonia, an essential intermediate chemical, is primarily produced from natural gas. Transitioning to green hydrogen could significantly curb emissions, with estimates projecting that 10% of hydrogen used in fertilisers will be green by 2030.
Additional Decarbonisation Strategies
Alongside green hydrogen, the report underscores other key decarbonisation pathways such as carbon capture utilisation (CCU) and boosting production of bio-fertilisers and bio-pesticides. Since carbon dioxide plays a vital role in urea synthesis, CCU could promote circular economy principles by capturing and reusing emissions.
Calls for Clear Policy Frameworks
Despite these promising opportunities, many Indian agrochemical companies have yet to announce net-zero targets. Those that have committed are aligned with the 2050 Paris Agreement goals. To accelerate this green transition, JMK Research urges the central government to take action. It recommends creating a dedicated emission reduction framework specifically for the agrochemical sector.
Laying the Foundation for a Sustainable Future
India’s agrochemical sector stands at the cusp of transformation, leveraging renewable energy, green hydrogen, and innovative technologies to reduce emissions. As reported by knnindia.co.in, with strategic investments and supportive policies, the industry can achieve significant decarbonisation and contribute to India’s broader climate goals by 2030.
