Transforming Agrochemicals: India’s $7 Billion Push for Renewable Energy by 2030 – EQ
In Short : India’s agrochemical sector aims to add 11 GW of renewable energy (RE) capacity by 2030, requiring a \$7 billion investment, according to a JMK Research report. Currently, only 3% of the sector’s electricity comes from renewables. The plan includes increasing RE use in direct consumption and integrating green hydrogen in fertilizer production, aligning with India’s 500 GW RE goal by 2030.
In Detail : India’s agrochemical sector is set to undergo a significant transformation by 2030, aiming to integrate 11 GW of renewable energy (RE) capacity. According to a report by JMK Research, this ambitious transition will require an estimated investment of \$7 billion. The move is part of a broader effort to reduce the sector’s carbon footprint and enhance sustainability.
Currently, the agrochemical industry in India relies heavily on fossil fuels, with only around 3% of its electricity consumption coming from renewable sources. The report indicates that this share could rise to 20% by the end of the decade, necessitating the addition of approximately 1.7 GW of new renewable capacity. This transition will be critical in reducing the sector’s environmental impact.
The fertilizer segment, particularly urea production, is the primary contributor to emissions within the agrochemical industry, accounting for over 90% of the sector’s carbon output. While pesticides have a higher energy intensity per unit, their overall contribution to emissions is lower due to smaller production volumes. Addressing emissions from these key areas will be essential for meeting the sector’s sustainability goals.
To facilitate this shift, the sector plans to increase the use of renewable energy in direct electricity consumption. Additionally, incorporating green hydrogen into fertilizer production is seen as a promising approach. These strategies are aligned with India’s commitment to achieving 500 GW of renewable energy capacity by 2030, as part of its climate action targets.
The report also highlights other potential measures for decarbonization, including the adoption of carbon capture and utilization (CCU) technologies. Furthermore, increasing the production of bio-based alternatives like bio-fertilizers and bio-pesticides could significantly reduce emissions while promoting sustainable agricultural practices.
Overall, the agrochemical sector’s transition towards renewable energy is a critical step in supporting India’s clean energy ambitions. By investing in innovative technologies and renewable integration, the industry aims to reduce its carbon footprint while ensuring long-term energy security and environmental sustainability.
