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Decarbonization Avenue : Low Carbon Chemicals & Fertilizers

The chemicals and fertilizers sector is a significant contributor to CO2 emissions, primarily due to its reliance on oil as a feedstock and the energy-intensive nature of production processes. In India, where industrial growth and agricultural productivity are crucial, addressing the carbon footprint of these sectors is vital for sustainable development.

 

Current Scenario 

  • Chemicals Sector: India is a major producer of chemicals, contributing significantly to the global market. The sector emits approximately 120 million tonnes of CO2 annually, with key chemicals like ethylene, methanol, and polypropylene being the primary sources.
  • Feedstock Dependency: The dependency on oil and natural gas as feedstocks results in high embodied carbon in chemical products. For instance, producing 1 tonne of ethylene in India results in approximately 2 tonnes of CO2 emissions.
  • Fertilizers Sector: India is one of the largest consumers and producers of fertilizers, with an annual production of over 50 million tonnes. The fertilizer industry emits around 120 million tonnes of CO2 annually, largely from hydrogen and ammonia production.
  • Hydrogen and Ammonia Production: Hydrogen production through steam methane reformation and ammonia synthesis are highly carbon-intensive processes. Producing 1 tonne of ammonia emits about 2.9 tonnes of CO2.

 

Challenges

  • High Energy Consumption: The energy-intensive nature of chemical and fertilizer production leads to significant CO2 emissions. The energy required to produce 1 tonne of ammonia is about 35 GJ.
  • Infrastructure and Technology: Current technologies and infrastructure are not optimized for low-carbon processes, and there is a need for significant investment in new technologies and renewable energy integration.

 

Key Technology

Green Hydrogen Production

  • Electrolysis: Using renewable energy-powered electrolysis to produce green hydrogen can significantly reduce CO2 emissions. Indian Oil Corporation and NTPC are investing in green hydrogen projects to decarbonize hydrogen production. For instance, producing green hydrogen through electrolysis can reduce CO2 emissions by approximately 9 kg per kg of hydrogen compared to traditional methods.

Electrification of Production Processes

  • Ammonia Production: Electrifying the ammonia production process using renewable energy can reduce CO2 emissions. The Fertilizer Corporation of India is exploring the feasibility of electrified ammonia production. For example, using renewable energy for ammonia synthesis can reduce CO2 emissions by up to 90% compared to conventional methods.
  • Ethylene Production: Research is underway to develop electric cracking processes for ethylene production, which can significantly lower emissions compared to traditional steam cracking. Electric cracking could potentially reduce CO2 emissions by up to 50%.

Bio-based Raw Materials

  • Bioplastics and Bio-chemicals: Bio-based alternatives to petroleum-based chemicals can reduce the carbon footprint. Companies like Godavari Biorefineries are producing bio-chemicals from renewable feedstocks. For instance, producing bioplastics from agricultural residues can reduce CO2 emissions by up to 80% compared to conventional plastics.
  • Agricultural Residues: Utilizing agricultural residues and waste as raw materials for chemical production can create a circular economy and reduce dependency on fossil fuels. This approach can lead to a reduction of 15-20 million tonnes of CO2 annually.

Recycling and Circular Economy

  • Plastic Recycling: Enhancing plastic recycling infrastructure and technologies can reduce the need for new chemical production. India is increasing its plastic recycling rate, aiming to recycle 50% of plastic waste by 2030. Improved recycling could save up to 10 million tonnes of CO2 annually.
  • Chemical Recycling: Developing chemical recycling technologies that break down plastics into their monomers for reuse in chemical production can significantly reduce emissions. Chemical recycling can potentially save up to 75% of CO2 emissions compared to producing new plastics.

Energy Efficiency Measures

  • Process Optimization: Implementing advanced process control and optimization technologies in chemical plants can improve energy efficiency. For instance, optimizing the catalytic process in ammonia synthesis can reduce energy consumption by 10-15%.
  • Heat Integration: Utilizing waste heat recovery and heat integration technologies can improve overall energy efficiency in chemical and fertilizer production plants. Waste heat recovery systems can save up to 30% of energy consumption.

 

Case Studies

  • Indian Oil Corporation's Green Hydrogen Initiative: Indian Oil Corporation has launched a green hydrogen initiative to produce hydrogen through renewable energy-powered electrolysis. This project aims to decarbonize hydrogen production and reduce CO2 emissions significantly. The pilot plant aims to produce 5,000 tonnes of green hydrogen annually, reducing CO2 emissions by approximately 45,000 tonnes.
  • Reliance Industries' Bio-based Chemicals: Reliance Industries is investing in the development of bio-based chemicals and materials. Their pilot projects include producing chemicals from agricultural residues, reducing dependency on fossil fuels and lowering the carbon footprint. The bio-based chemical production is expected to reduce CO2 emissions by 1 million tonnes annually by 2030.

Decarbonization potential

The chemicals and fertilizers sector in India is a significant contributor to CO2 emissions due to its reliance on fossil fuels and energy-intensive production processes. With annual emissions of over 240 million tonnes of CO2 from this sector, decarbonization efforts are crucial. By adopting green hydrogen, electrifying production processes, increasing the use of bio-based raw materials, and enhancing recycling rates, India can achieve substantial emission reductions. These measures could cut CO2 emissions by up to 60 million tonnes annually by 2030. 

 

Key Datapoints

  • Green Hydrogen: Achieve 30% of hydrogen production through green hydrogen methods, reducing CO2 emissions by approximately 20 million tonnes annually.
  • Electrification: Electrify 50% of ammonia and ethylene production processes using renewable energy, cutting emissions by 15 million tonnes annually.
  • Bio-based Chemicals: Increase the production of bio-based chemicals to 20% of the total chemical output, reducing fossil fuel dependency and emissions by 5 million tonnes annually.
  • Recycling Rates: Enhance plastic recycling rates to 50%, reducing the need for new chemical production and saving energy equivalent to 10 million tonnes of CO2.
  • Energy Efficiency: Improve energy efficiency in chemical and fertilizer production processes by 20%, leading to significant reductions in energy consumption and CO2 emissions by 15 million tonnes annually.

Industries impacted

  • Agriculture & farming
  • Chemicals & petrochemicals
  • Construction & real estate
  • Fast moving consumer goods
  • Fertilizers
  • Food & beverages
  • Marine transport
  • Mining & metals
  • Oil & gas
  • Packaging & plastics
  • Pharmaceuticals
  • Textile & apparel

Themes & Topics

  • Decarbonization for:

    • Primary petrochemicals

      • Ethylene

      • Methanol

      • Polypropylene

      • BTX (benzene/toluene/xylene)

    • Fertilizers

      • Ammonia production

    • Inorganic chemicals 
  • Low carbon chemical synthesis

    • Catalysts for low carbon green chemicals

    • Bio sources for renewable chemicals

 

 

 

 

 

 

 

 

 

 

 

 

  • Decarbonization through:

    • Renewable energy

    • Energy efficiency

      • Electrification

    • Waste management

    • Alternative raw materials & ingredients

      • Bio-based taw materials

      • Waste plastics as feedstock 

    • Better processes & pathways

    • Water use efficiency

    • Carbon capture and/or use

  • Policies & mandates

  • Collaboration

    • Organizations

  • Academic and university research

  • Economics of low carbon chemicals

  • Key challenges

 

 

 

 

 

 

 

 



All Decarbonization Avenues @ EAI


Renewable Energy :

  • Utility Scale Solar PV |
  • Distributed Solar PV |
  • Solar Thermal |
  • Wind Power |
  • Biomass for Heating & Power |
  • Biofuels |
  • Hydro Power |
  • Geothermal Energy |

  • Energy Efficiency :

  • Industrial Waste Heat Recovery |
  • Low Carbon Thermal Power |
  • Energy Efficient Industrial Equipment |
  • Smart Grids |
  • Heat Pumps |
  • Digital for Decarbonization |
  • Energy Efficient Buildings |

  • Energy Storage :

  • Green hydrogen |
  • Thermal & Mechanical Storage |
  • Battery Storage |

  • Agriculture & Food :

  • Sustainable Forestry |
  • Regenerative Agriculture |
  • Smart Farming |
  • Low Carbon Food |
  • Agro Waste Management |

  • Waste Management :

  • Reducing Food Waste |
  • Solid Waste Management |

  • Materials :

  • Bio-based Materials |
  • Advanced Materials |
  • Product Use Efficiency |
  • Industrial Resource Efficiency |

  • Water :

  • Water Use Efficiency |

  • Decarbonizing Industries :

  • Low Carbon Metals |
  • Low Carbon Chemicals & Fertilizers |
  • Low Carbon Construction Materials |
  • Low Carbon Textiles & Fashion |
  • Corporate Carbon Management |
  • Decarbonizing Oil & Gas Sector |

  • Low Carbon Mobility :

  • Electric Mobility |
  • Low Carbon Trucking |
  • Low Carbon Marine Transport |
  • Low Carbon Aviation |
  • Low Carbon ICE Vehicles |
  • Mass Transit |

  • GHG Management :

  • C2V - CO2 to Value |
  • CO2 Capture & Storage |
  • Reducing Emissions from Livestock |
  • Reducing Non-CO2 Industrial & Agricultural Emissions |
  • Managing Large Carbon Sinks |

  • Communities :

  • Low Carbon Lifestyles |
  • Low Carbon Cities |

  • Finance :

  • Climate Finance |

  • Platforms :

  • Multi-stakeholder Collaboration |
  • Low Carbon Accelerators |

  • Moonshots :

  • Moonshots |