Bulk chemical output set to rise 23% by FY30; RE shift cuts costs, emissions: Report

Time of India

16-07-2025

New Delhi: India's
chlor-alkali production
is expected to rise from 9.23 million tonnes in FY24 to 11.5 million tonnes by FY30, marking a 23 per cent growth, while emission intensity from the sector could reduce by 12 per cent over the same period, according to a report by JMK Research & Analytics.
The report said the chlor-alkali segment accounted for over 71 per cent of India's bulk chemical production in FY24. The sector's average emissions intensity was 1.88 tonnes of CO₂ equivalent per tonne of production in FY24, which is projected to reduce to 1.65 tCO₂e/t by FY30.
Under the Greenhouse Gases Emission Intensity Target Rules, 2025, the sector is required to cut its emissions intensity by 2–3 per cent annually starting 2026.
DCM Shriram case study: Cost savings and emission reduction
DCM Shriram, the country's second-largest caustic soda producer, reported a 26 per cent reduction in power costs and 92,000 tonnes of CO₂ abatement in FY24 through a 43.8 MW wind-solar hybrid plant in Bharuch, Gujarat. The project was developed through ReNew Green (GJ Ten) Private Ltd, with DCM holding a 31.2 per cent stake in the group captive model.
The plant generated 250 million units of electricity in FY24 at a power purchase tariff of ₹3.55 per unit. The share of renewable electricity in the company's total consumption rose from 0.22 per cent in FY23 to 23.7 per cent in FY24.
DCM Shriram also commissioned a 12 TPD compressed biogas (CBG) unit in Ajbapur, Uttar Pradesh, with ₹131 crore in investment, including ₹100 crore in
sustainable financing
from Standard Chartered Bank. The unit was commissioned on March 27, 2025.
RE share in energy mix at 41.8%; emissions at 2.42 million tCO₂e
DCM Shriram's total energy consumption in FY24 stood at 46,139 TJ, with renewables accounting for 41.8 per cent, according to the report. Renewable fuels such as biomass, bagasse, ethanol and CBG comprised 42.6 per cent of the renewable share.
The company reported total Scope 1 and 2 emissions of 2.42 million tonnes of CO₂ equivalent in FY24, with an overall emissions intensity of 0.83 tCO₂e per tonne of production. Its chlor-alkali segment had a higher intensity at 2.15 tCO₂e/t, 14 per cent above the national average.
As per the emission intensity rules, DCM Shriram's Kota unit is required to reduce its intensity by 6.8% and the Bharuch unit by 8.3 per cent by FY27.
New RE projects to be commissioned by FY26
The company plans to commission a 68 MW wind-solar hybrid project at its Kota unit by Q4 FY26 in partnership with JSW Renewables. DCM has invested ₹60 crore for a 26 per cent equity stake in the special purpose vehicle. Another 6.6 MW RE capacity will be added at the Bharuch unit by Q1 FY26.
Once operational, these projects are expected to generate ₹430 crore in annual power cost savings and abate 3.3 lakh tonnes of CO₂—up from 92,000 tonnes in FY24.
In FY24, DCM Shriram also used 30.2 million Nm³ of blue hydrogen in place of furnace oil, resulting in an additional 80,095 tonnes of CO₂ abatement.
Other companies scaling clean energy use
Tata Chemicals and Aditya Birla Chemicals are also adopting clean energy. Aditya Birla Chemicals targets a 30 per cent emissions reduction from 2017 levels by FY25, and carbon neutrality by 2050. Tata Chemicals is working to replace 10 per cent of coal with biomass and scale solar and wind capacity.
JMK Research noted that India's chlor-alkali sector faces regulatory and market pressure to decarbonise and improve competitiveness, with
renewable energy
, hybrid systems and
green hydrogen
seen as key strategies.