Excerpts from his speech at the 13th edition of CII Greenco Summit on the theme, green makes business sense.
Green hydrogen will play key
Before the pandemic, atmospheric CO2 concentration stood at 410 PPM. Despite minimal economic activity that year, it saw an increase of 2 PPM. The current CO2 level has risen to approximately 427 PPM. Without technological intervention, projections suggest it could escalate to as high as 2000 PPM, posing severe and potentially catastrophic consequences. This alarming scenario was highlighted in a recent report from the World Meteorological Organization, underscoring the imminent threat to exceed 1.5°C above pre-industrial level temporarily, in next 5 years. Recent extremes like the reported 52°C in Delhi, underscore the urgency of the situation. The timeline is pressing, with predictions pointing towards critical climate impacts by 2027, necessitating immediate action. In light of these challenges, the focus is shifting towards net zero emissions and sustainability.
Hydrogen technology, particularly green hydrogen will play a critical role. Additionally, there’s a growing emphasis on treating carbon dioxide as a valuable resource akin to the oil industry. With crude oil reserves projected to deplete by 2050, there is an immediate necessity to find alternative strategies for running refineries and other industrial operations.
Sustainability ingrained as part of DNA
Ministry of Commerce, SEBI and CII should consider adding a new role in the boards of all companies. The role must be called Sustainability and Innovation Director (SID) and it will be crucial in driving sustainability initiatives forward. Previously, manufacturers focused solely on their own emissions (scope one), but now must consider the entire ecosystem (scope two and scope three). This comprehensive approach is essential for addressing carbon dioxide emissions across all scopes. Environmental, Social and Governance (ESG) criteria have become ubiquitous, reflecting a broader commitment beyond mere terminology. Every stakeholder, from top management to the lowest-ranked employee, should embrace ESG principles. This collective effort is vital in achieving net zero or even net negative emissions. Greening the business isn’t just about compliance or obtaining certifications. It’s about integrating sustainability into the core of corporate strategy, ensuring that every action contributes positively to the global environment. Collaboration between sustainability officers and SIDs can drive this agenda forward, transcending mere compliance to actively enhancing global sustainability efforts.
Carbon based non-fossil fuels are also polluting
Carbon dioxide needs to be drastically reduced to 10GT to achieve net negative emissions. Excess carbon in the atmosphere is unsustainable. During the pandemic, I published a paper highlighting the need for global governments to reconsider their policies regarding fuels and chemicals. Shifting to biomass-based carbon isn’t a sustainable solution. Both renewable and non-renewable carbon-based fuels contribute to temperature rise. Refineries, for instance, heavily rely on hydrogen production, sourced mainly through methods like steam methane reforming, which is highly polluting. In contrast, bio-refineries promote carbon neutrality, producing biofuels that are beneficial. But this should be short term and not a permanent approach as ethanol, for instance, is valuable as a feedstock for producing multiple chemicals than just fuel.
Circular economy principles are critical in addressing climate change. Material recycling will play a major role in the future, especially with increasing construction and redevelopment projects. Solar panels and wind blades, for instance, have finite lifespans and must be recycled efficiently to recover valuable materials. Similarly, battery recycling presents a significant opportunity for the chemical and allied industries to capitalise on valuable materials that would otherwise go to waste.
Agri-waste has much potential
During December and January, Delhi’s air quality index exceeds 400 due to stubble burning. Farmers burn agricultural residues like sugarcane, pulses and oilseeds, releasing pollutants. This burning, wastes about 350 million metric tonnes of agri-waste annually, which could otherwise be valuable sources of chemicals and materials. For instance, rice husks contain 92 per cent silica, while stems have 50 per cent silica, making them potential sources for inorganic materials. My suggestion is for farmers to adopt technology to convert agri-waste into valuable resources and eliminating pollution from burning.
Solar, Wind, Hydrogen – The Trimurthy
Looking ahead to 2050, the global energy demand is projected to reach 49,000 terawatt-hours. I urge the government to aim for 20 per cent of this energy from renewable sources, potentially exporting the excess. My vision, termed as the “new trinity,” emphasises solar, wind and hydrogen – akin to Brahma, Vishnu and Mahesh – with hydrogen as the prime saviour due to its highest specific energy density and versatility.
Hydrogen holds immense potential for various applications and its market is expanding rapidly, with projected demands ranging from 540 to 800 mt annually. The target price for hydrogen production is set at USD 1 per kilogram, excluding delivery costs, highlighting the economic viability. Currently, most available (96%) is grey hydrogen, produced from steam methane reforming, which is less efficient and environmentally harmful. Electrolyser technologies, crucial for producing green and blue hydrogen, need significant improvement to meet future demands effectively.
The transition to green hydrogen is pivotal for industries like steel production, which currently emits substantial carbon dioxide. By adopting the same, industries can mitigate their environmental footprint significantly. Ultimately, embracing a hydrogen economy entails overcoming challenges and fostering innovation.
