What will it cost India's fertiliser industry to reach net zero?

India is the second-largest fertiliser producer in the world, accounting for ~20% of global production.

Fertilisers play a vital role in increasing agricultural output.

Source: Fertilizer Association of India 2023

Source: CEEW analysis

Decarbonising the fertiliser industry will lead to import savings of ~USD 10 billion.

This is because ~60 per cent of the natural gas consumed in this sector is imported.

Source: IEEFA

Source: CEEW analysis

The Indian fertiliser industry contributes ~25 million tonnes of CO2 annually.

85% of the emissions can be attributed to the use of natural gas fuel and feedstock.

The remaining 15% is from electricity use.

Source: CEEW analysis

What mitigation options can cut emissions in the fertiliser industry?

1. Shifting to green ammonia.

Source: CEEW analysis

Currently, ammonia production accounts for ~95% of the emissions in this sector.

Moving to greener alternatives can help reduce emissions by 151%, making the industry net carbon-negative..

Source: CEEW analysis

2. Adopt energy efficient technologies that can result in a ~10% reduction in emissions intensity.

Source: CEEW analysis

To achieve net-zero, we recommend that the fertiliser industry:

3. Sets up bioethanol plants near urea plants

1. Blends green ammonia and promotes its use for the production of green urea ammonium nitrate and other nitrates

2. Incentivises the adoption of energy-efficient technologies

Evaluating Net-zero for the Indian Fertiliser Industry