This report revealed by NITI Aayog summarises that the aluminium trade stands at a pivotal crossroads in its decarbonisation journey. As a key contributor to India’s financial system and industrial development, the sector must adapt rising world sustainability tendencies and bold emissions discount targets. Aluminium manufacturing accounted for about 2.8% of India’s GHG emissions or 83 MTCO2e in 2023, and with out intervention, emissions may rise to 376 MTCO2e by 2070. With a nationwide common emission depth of 20 – 21 tCO2/t of aluminium, considerably larger than the worldwide common of 15 tCO2/t, the sector clearly wants transformation.
The aluminium sector is hard-to-abate, owing to its excessive electrical energy consumption, met by coal-based electrical energy. Therefore, lowering its carbon footprint is significant, not solely to help India’s net-zero targets but in addition mitigate export dangers from rising commerce laws, i.e. the EU’s CBAM. As different nations develop low-carbon applied sciences & create commerce measures based mostly on embedded emissions, India’s aluminium trade is offered with a possibility to decrease its emission depth to be a worldwide chief in sustainable steel manufacturing. This can even drive India’s clear vitality transition within the longer run.
The worldwide tendencies clearly point out the growing demand for low-carbon aluminium, induced by laws and client decisions throughout the car, packaging, and building sectors. Nonetheless, aluminium faces competitors from different supplies like metal and plastics, at the moment with a greater carbon footprint. Thus, merely if the Indian aluminium trade needs to be on par with world market necessities, the shift needs to be towards cleaner manufacturing routes whereas retaining prices underneath test.
Accordingly, the Working Group constituted by NITI Aayog on decarbonisation of aluminium assessed 30 proposed options underneath the decarbonisation roadmap. Low-impact choices had been de-prioritised, whereas the high-impact options had been categorised into three essential approaches. All three of those approaches deal with lowering emissions from electrical energy, which stays the biggest supply of emissions on this sector. In-depth technical and financial evaluation was carried out for every of the chosen options, together with detailed value estimates, in addition to extra help measures that might allow profitable implementation.
A worth chain evaluation carried out on aluminium production-from the mining of its uncooked supplies to the manufacturing of completed metal-revealed that a lot of the emissions happen on the smelting stage, the place alumina is being was metallic aluminium. Furthermore, a lot of the emissions are associated to the vitality required for this course of. Therefore, a lot of the potential for decarbonisation and ensuing options are associated to a discount of emissions linked with energy technology. That is essential because the sector maintains a fleet of captive coal-power turbines to make sure a steady energy provide.
Whereas RE-RTC presents a viable short-term resolution, it poses operational challenges for aluminium smelters, which require steady and uninterrupted energy provide, inserting excessive calls for on the reliability of RTC mechanisms. Nuclear energy offers a secure and low-emission supply for the medium time period however at a excessive upfront capital value and with difficult regulatory, allowing, and public notion points. CCUS is essential to long-term decarbonisation however faces excessive prices, infrastructure, and uncertainty relating to carbon transport and storage.
Entry the report right here
