India Sets Ambitious Goal To End Urea Imports By 2025 With Green Production Initiative

(MENAFN- KNN India) New Delhi, Nov 5 (KNN) India's Ministry of Chemicals and Fertilizers has announced an ambitious plan to end urea imports by 2025, a move deemed crucial for the country's agricultural and economic sustainability.

In the 2022-23 fiscal year, India consumed over 36 million metric tonnes (MMT) of urea, with 20 per cent of that amount sourced through imports, costing the nation a staggering INR 38,000 crore.

While domestic production met the majority of demand, primarily through fossil-fuel-based processes, the need for cleaner, sustainable alternatives has become increasingly pressing.

Urea is a vital component in Indian agriculture, functioning as a key fertilizer, and serves as an essential raw material in the plastics industry and as nutrient feed for livestock.

Currently, the production process largely relies on natural gas, which accounts for 32 per cent of India's total annual natural gas consumption. With nearly 50 per cent of this gas being imported, India is particularly vulnerable to global market fluctuations.

According to a 2022 report by McKinsey & Company, India emits approximately 2.8 giga tonnes of carbon dioxide (CO2) each year, with projections indicating that it will need to manage a colossal 80 Gt of CO2 by 2070 to meet its net-zero goals.

While the country has significant theoretical potential for carbon storage, a multifaceted approach to decarbonisation is essential.

To combat this, the proposed green urea production process offers a transformative solution. By utilising point-source CO2 emissions-primarily from high-emission industries such as iron and steel, cement, and coal power-India can significantly reduce its carbon footprint.

This method involves capturing CO2 emissions from these industries, generating hydrogen through water electrolysis powered by renewable energy, and extracting nitrogen from the atmosphere. Such a circular economy approach not only aids in decarbonisation but also promotes sustainability.

Financially, the transition to green urea production is projected to require a capital expenditure of INR 45,000 crore, with an annual operating cost of INR 27,000 crore, primarily driven by electricity needs for hydrogen production.

However, this shift could potentially save India INR 12 lakh crore over the life of the production facilities by eliminating urea imports.

Moreover, implementing green urea production could generate new jobs and stimulate economic growth, fulfilling the vision of an Atmanirbhar Bharat.

By capturing just 0.36 per cent of total point-source emissions (equating to 5.7 MMT of CO2), India could eliminate urea imports entirely. A more extensive application of this technology could allow for meeting the entire urea demand domestically.

In conclusion, transitioning to green urea production represents a vital step in reducing reliance on imports while aligning with India's environmental goals.

By investing in advanced carbon capture and renewable energy technologies, India not only positions itself for self-sufficiency in urea but also champions a sustainable future.

(KNN Bureau)

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