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

Aluminium and its alloys are used extensively for aircraft manufacturing, building materials and consumer goods like refrigerators.

Source: CEEW analysis

The total cost to decarbonise the aluminium industry will be USD 29 billion in capital expenses.

An additional USD 8 billion will be required for operating costs annually.

Source: CEEW analysis

In 2019-20, the Indian aluminium industry emitted 77 million tonnes of CO2.

Source: CEEW analysis

80% of the emissions was due to electricity consumption.

Process emissions and fuel consumption accounted for the rest.

Source: CEEW analysis

What mitigation options can existing aluminium plants use to cut emissions?

49% of emissions can be abated through renewable energy-powered electricity.

Source: CEEW analysis

25% of emissions can be reduced through carbon capture utilisation and storage (CCUS) - an expensive solution currently.

Source: CEEW analysis

Energy efficiency and switching to natural gas fuel can offset the remaining 26% of the emissions.

Source: CEEW analysis

That said, net-zero aluminium remains 61% more expensive.

Source: CEEW analysis

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

1. Incentivises renewable energy.

2. Develops a robust measurement, reporting and verification framework to estimate greenhouse gas (GHG) emissions.

3. Establishes policies to set up an effective CCUS ecosystem in India.

Evaluating Net-zero for the Indian Aluminium Industry