The decarbonization of the chemical sector in India is necessarily path dependent and is important to achieve national mitigation targets, as the industry's electrification can provide strong mitigation potential only if the power sector is low carbon. However, in 2019, coal based generation accounted for about 72% of electricity production in India. Sectors that are hard to abate, including chemical, account for about a quarter of the country's CO₂ emissions, and the chemical sector needs a diverse set of mitigation measures, including biofuel, hydrogen, CCS, and efficiency measures.
We have used KiNESYS, an economywide energy system modelling framework, to assess India's long-term energy transition under alternative policy and technology pathways by developing two scenarios: a Base Scenario and a Net Zero Scenario.
In the Base scenario, the energy demand continues to grow through 2050, with a gas dominated fuel mix as shown in Fig. 1. Although coal and grid electricity remain important, oil products are cut but not eliminated. This means that the sector essentially transitions from one fossil fuel to another (gas), with very limited electrification; thus, overall emissions reductions occur through efficiency and fossil fuel switching, rather than a low-carbon transition.
Fig. 1. Base Scenario Energy Mix Chemical Sector.
In the Net-Zero scenario, there is a change in the energy mix of the chemical industry. By 2050, electricity emerges as the largest energy source, indicating extensive electrification. Biofuels gas follows after 2040 for non electrifiable applications, and hydrogen enters as a significant carrier for clean materials and high temperature requirements. Coal and oil are almost phased out, as shown in Fig. 2.
Fig. 2. Net Zero Scenario Energy Mix Chemical Sector.