Greening Indian Agrochemical Sector Needs USD 7 Billion By 2030

(MENAFN- KNN India) New Delhi, May 15 (KNN) India's agrochemical manufacturing sector is poised for a green transformation, with plans to integrate up to 11 GW of renewable energy (RE) capacity by 2030, according to a new report by JMK Research. This shift will require an estimated investment of USD 7 billion.

Agrochemicals, including fertilisers, biostimulants, and pesticides, are considered hard-to-abate due to their heavy reliance on fossil fuels for both raw materials and energy.

The report reveals that over 90 per cent of emissions in this sector stem from fertiliser production, especially urea. Although pesticides are more energy-intensive per unit, their overall impact is smaller due to lower production volumes.

Currently, only about 3 per cent of electricity used by the industry comes from renewable sources. JMK Research projects this share could grow to 20 per cent by 2030, requiring about 1.7 GW of additional RE capacity.

The report highlights this transition as a significant early step toward decarbonisation.

Green hydrogen is identified as a pivotal element in reducing emissions. Ammonia, a key intermediate in fertiliser manufacturing, is presently derived from natural gas.

Switching to green hydrogen could drastically cut emissions, with estimates suggesting 10 per cent of hydrogen used in fertilisers could be green by 2030.

Other decarbonisation strategies include carbon capture utilisation (CCU) and increased production of bio-fertilisers and bio-pesticides.

Since carbon dioxide is a crucial input in urea production, CCU could help support a circular economy model.

Despite these opportunities, many agrochemical firms in India have yet to declare net-zero targets. Those that have are aligned with the 2050 Paris Agreement goals.

JMK Research has called for the central government to introduce a dedicated emission reduction framework to guide the sector's green transition.

(KNN Bureau)

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