India’s journey towards a sustainable energy future will be shaped by the industrial sector’s ability to decarbonise, industry leaders and experts emphasised at the India Energy Transition Summit hosted by FICCI.

Union Minister of State for Power and New & Renewable Energy, Shripad Yesso Naik, set the tone by outlining a four-pronged approach to industrial decarbonisation, focusing on energy efficiency, electrification, green hydrogen adoption, and carbon capture utilisation. He stressed the industrial sector’s pivotal role, given that it accounts for nearly 35% of India’s energy-related emissions. “Decarbonisation is imperative, particularly for six hard-to-abate industries, including iron and steel (25%), aluminium (20%), and cement (9%),” the minister said.

Challenges in industrial decarbonisation

Addressing the energy transition in refining operations, Nayara Energy’s ESG head, Jyotsna Joshi, detailed the company’s step-by-step approach towards renewables. “We are investing in ethanol and biofuel production, integrating renewable energy in our 6,000-plus retail stations, and assessing non-critical loads that can shift to renewables. However, replacing coal-based captive power plants overnight is not feasible due to reliability concerns,” she explained. Policy support and long-term investment viability remain crucial for such large-scale transitions, she added.

Naveen Ahlawat, head – Green Hydrogen, Gasification and CCUS at Jindal Steel & Power challenged the notion that sectors like steel are ‘hard-to-abate’. “We believe it is possible to decarbonise these sectors with incremental steps rather than immediate transformation. We are deploying a 30 MW electrolyser this year to integrate green hydrogen into our DRI furnaces, replacing 5% of synthesis gas,” he said.

The steel sector, which globally relies on blast furnaces for 70% of production, faces high replacement costs, but India has taken the lead by defining ‘green steel’ standards and CO2 quantification. “European buyers are willing to pay a premium for low-carbon steel, and India must position itself to capitalise on this demand,” he added.

Pinaki Bhattacharyya, MD & CEO, Ampin Energy Transition, highlighted the economic rationale for adopting renewables. “Industries that move swiftly towards renewables will gain a competitive edge. In states like Karnataka, renewable energy costs 40% less than conventional sources,” he pointed out. However, challenges such as land acquisition and infrastructure bottlenecks need urgent resolution.

Healthcare, another energy-intensive sector, also faces unique sustainability challenges. Alok A Kumar, lead – ESG, Fortis Healthcare stressed the importance of operational efficiency. “A typical hospital is 3.4 times more energy-intensive than a commercial building. We are optimising energy, water, and waste management across 28 hospitals, using intra-hospital analytics to identify areas for improvement,” he said.

Policy and Technology imperative

The panelists agreed that policy alignment across states is essential. “We have 30 states with 30 different policies and regulations. A unified framework is necessary to provide consistency for investors and industries,” noted Sunil Jain, co-founder, Sundev Renewables.

Technology will play a key role in enabling this transition. While wind energy costs have stagnated, solar has become more affordable, and advancements in energy storage are expected to be a game changer. “Real storage solutions are now available at significantly lower costs, making round-the-clock green energy a viable option,” Bhattacharyya said.

With industries accounting for half of India’s energy consumption, the panelists urged companies to act swiftly. “The transition is not just about sustainability but also about economic resilience. Energy efficiency translates to cost savings, and businesses must embrace this shift now,” added Bhattacharyya.

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India’s decarbonisation drive: Energy Transition Summit highlights industry-led roadmap