Vedanta Aluminium, a business of Vedanta Limited, is one of the world’s leading aluminium producers and the country’s largest. It makes over half of India’s aluminium, at 2.29 million tonnes in FY23. It has also been named the second most sustainable aluminium producer in the world, as it has moved up from fourth to the second spot in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for aluminium industry. The company was India’s largest industrial consumer of renewable energy in FY22, procuring nearly 3 billion units. This feat, says Sunil Gupta, COO of Vedanta Ltd – Aluminium Business, resulted in its Jharsuguda plant reducing its greenhouse gas (GHG) emission intensity by 12% in FY22 while increasing production by 20%. In an interaction with ET Digital, Gupta explains how the company was able to achieve this feat. He also talks about Vedanta’s multifaceted approach in carbon reduction, energy conservation and circular waste management which have helped the company, its customers and the villagers in the vicinity of its Jharsuguda, Odisha, plant. Edited excerpts: Economic Times (ET): How has 2022-23 fared for Vedanta Aluminium vis-à-vis global firms in terms of environmental sustainability actions? Sunil Gupta (SG): We have incorporated a robust approach towards environmental sustainability, which includes a laser focus on the key pillars of carbon reduction, energy conservation, air quality, water footprint, circular waste management and biodiversity. We achieved this by structurally integrating the principles of sustainability throughout our value chain, from raw material sourcing to product delivery, with climate action being central to our growth journey. As a testimony to such endeavours, we ranked second in the S&P Dow Jones Sustainability Index (DJSI) world rankings for the aluminium industry for the assessment period FY22, which makes us the second most sustainable aluminium producer in the world today. ET: How did you achieve this, at an operational level? SG: We reduced greenhouse gas (GHG) emissions intensity by 24% in FY 2022, from the 2012 baseline, while increasing production by eight times over the same period through significant energy conservation activities. We recycled 14 billion litres of water through impactful water conservation initiatives. Building true circular economy avenues, we supplied 100% of the fly-ash generated at our plants to allied industries in cement production, highways construction, brick manufacturing, etc, ensuring gainful utilisation of these industrial by-products. We also planted and nurtured over 2.5 lakh saplings over the year, expanding the carbon sink around our plants. Our low-carbon and ultra-low carbon aluminium brands saw robust sales among diverse industries looking to procure green raw materials.
Vedanta's Jharsuguda smelter is among the world's largest single-site aluminum smelters outside of China.
ET: What is the difference between cut in GHG emission and cut in GHG emission intensity? How is a cut in intensity relevant for companies and society? SG: In simple terms, a cut in GHG emissions means a reduction in the overall amount of greenhouse gases released into the atmosphere. A cut in GHG emission intensity means a reduction in the amount of greenhouse gases released per unit of economic or activity output. Both approaches are important in addressing climate change. Cutting emissions directly helps lower the impact on the environment, while reducing emission intensity ensures that economic growth and development can be achieved with a smaller carbon footprint.
By constantly implementing steps to mitigate and stem emission intensity, companies demonstrate workable avenues for sustainable operations, which can have a domino effect by prompting peer companies across their sectors and value chains to follow suit. Demonstrating lower emission intensity also encourages customers to consciously opt for products that have a better environmental provenance, therefore driving a social shift towards sustainability as well. ET: Please elaborate on the specific measures that resulted in reducing GHG intensity by 24%. SG: To reduce GHG intensity reduction and to reduce our carbon footprint in FY 2022, we executed a two-fold strategy of mitigating and offsetting our carbon footprint. Mitigation saw us enhance our manufacturing excellence for higher energy conservation and increase the quantum of renewables in our energy mix. To offset our carbon footprint, we created massive carbon sinks through extensive afforestation in and around our plant operations. We were India’s largest industrial consumer of renewable energy in FY22; we procured nearly 3 billion units. This resulted in our Jharsuguda plant reducing its GHG emissions intensity by 12% in FY22 while increasing production by 20%. We also launched Restora, aluminium made using renewable energy. It has happened for the first time in India.
The company says one of its products has a greenhouse gas emission intensity that is well below 4 tonnes of CO2 equivalent per tonne of aluminium manufactured. This is the global threshold for aluminium to be considered as having a low-carbon footprint.
Furthermore, digitisation, operational efficiency and energy conservation initiatives resulted in energy savings of 1.33 million GJ (gigajoule) and recycling of 15 billion litres of water and 99% of waste in FY22. Enabling a circular economy, we constantly utilised industrial by-products like fly ash and lime grit in avenues such as infrastructure, brick and cement manufacturing. Promoting greener practices beyond the plant operations, the company has been helping farming communities across our business locations with climate-resilient agriculture. These initiatives resulted in us securing the second position in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for global aluminium producers. ET: How have Vedanta’s low-carbon aluminium brands helped reduce its carbon footprint and further sustainability goals during FY23? SG: Our green aluminium brands are aimed at meeting the fast-growing global demand for aluminium with a low carbon footprint. We make these products using renewable energy. These help our customers make their products greener and decarbonise their value-chains. We manufactured significant quantity of low-carbon aluminium in FY 23. We plan to raise the renewable power supply to our aluminium smelters through various partnerships and supply agreements. One of our products has a greenhouse gas emission intensity that is well below 4 tonnes of CO2 equivalent per tonne of aluminium manufactured. This is the global threshold for aluminium to be considered as having a low-carbon footprint. ET: You said one of your products has a greenhouse gas (GHG) emission intensity that is well below 4 tonnes of CO2 equivalent per tonne of aluminium manufactured. For comparison, what is the emission otherwise — in non-low-carbon products? SG: According to the International Aluminium Institute, the global average of GHG emission intensity of primary aluminium is about 16 tonnes of CO2 per tonne of aluminium produced. However, depending on the fuel used for aluminium production — such as natural gas, oil or coal — and depending on plant efficiency, it can vary from 8 to 18 tonnes of CO2 equivalent per tonne of aluminium produced. ET: Vedanta Aluminium has set a goal to achieve water positivity by 2030. What is the road map for that and how are you adhering to it? SG: Our water sustainability efforts are aligned to the 6th UN Sustainable Development Goal of clean water and sanitation. Our approach to water management is four-fold. It covers robust monitoring, ensuring maximum water reutilisation, building a positive water footprint, and working with local communities towards building a sustainable water footprint. Water management is integrated into decision-making processes across our projects. We have deployed IIoT (Industrial Internet of Things) and similar leading-edge technologies for efficient monitoring of water usage and quality control. Stringent control measures and technologies have been adopted to ensure zero-discharge operations. We have deployed a high-concentration slurry disposal system for ash management to ensure maximum water recycling through feedback loops, and our cooling towers have one of the best cycles of concentration (COC) globally — higher the COC, lesser the additional freshwater intake. Through such endeavours in FY 23, we recycled 14 billion litres of water for reuse in our operations. ET: You talked about working with local communities for water management. Where and how is that being done? SG: We are working with local communities to make them climate resilient. We have restored and rejuvenated over 40 community ponds and waterbodies in the vicinity of our operations in Chhattisgarh and Odisha in this financial year alone. We are training farming communities on growing climate-resilient crops, adopting better cultivation methodologies and technologies such as drip-irrigation, treadle pump, solar powered water pumps & rainwater harvesting structures. We have also constructed hundreds of community water infrastructures like check dams, tube wells, bore wells, farm ponds, percolation tanks to help communities get perennial access to water for household and irrigation purposes. Integrated watershed management has benefited thousands of communities through livelihood creation, capacity building, new livelihood opportunities and more.
ET: Vedanta Aluminium had said it was now using electric forklifts. Is that decision also part of the sustainability goals?
SG: We commissioned India's largest fleet of electric forklifts at our aluminium smelter in Jharsuguda, which is one of the world’s largest smelters. Vedanta Aluminium is the home of the largest fleet of electric lithium-ion forklifts, with a total of 44 units deployed across its operations in Odisha and Chhattisgarh.
We replaced old diesel forklifts with lithium-ion powered forklifts. These electric forklifts make use of cutting-edge smart fleet management systems to provide us with real-time insights on the forklift’s operations and asset health. These forklifts can get charged rapidly and have long working cycles, increasing productivity. They also have a substantially longer life than conventional lead-acid batteries machines and are virtually maintenance-free.
ET: But how has this contributed to environmental sustainability?
SG: The forklifts have reduced diesel consumption significantly. These have also given greenhouse gas emissions savings of nearly 690 tonnes of CO2 equivalent. Boasting rapid charge and long working cycles, these electric forklifts make use of the cutting-edge ‘Smart Fleet Management’ system to provide real-time insights into the forklift’s operations and asset health. This initiative substantially reduces the company's carbon footprint including a potential annual decrease of around 1,600 tonnes of CO2 equivalent in GHG emissions. The 10-ton forklift alone decreases emissions up to 85 tonnes of CO2 per year/vehicle per annum. Additionally, this switch to electric forklifts leads to significant savings, estimated at over 5.1 lakh litres of diesel per year.
ET: No matter what changes companies implement in their processes, waste is still generated. And this is a factor in sustainability. What is Vedanta doing about that?
SG: Recently, we launched a material recovery facility at our mega aluminium smelter plant in Jharsuguda. It is a specialised plant to segregate and process waste into useful materials. From March to July 2023 alone, the facility converted nearly 1,70,000 kgs, of total waste into several useful materials. This helped mitigate around 2,00,000 kgs of carbon dioxide equivalent emissions, while also resulting in energy savings of more than 3,31,000 kWh gained by diverting waste from being relegated to landfills towards more gainful avenues.
We have also partnered with global environment conservation firm ERM to bolster our biodiversity management plan. Additionally, our wide product range has been verified by Environmental Product Declaration (EPD) International for upholding high standards of sustainability. Our smelter and its captive power plant at Jharsuguda are Aluminium Stewardship Initiative (ASI) certified for high sustainability standards With initiatives such as these, we remain wholly committed to exploring and deploying best-in-class technologies towards building a sustainable future for the planet.
ET: How do you see the EU’s carbon tax — the Carbon Border Adjustment Mechanism (CBAM) — and other such measures affecting Indian companies? How are you preparing for these?
SG: Vedanta Aluminium has commenced its journey towards becoming net zero carbon by 2050. We launched Restora, India’s first low-carbon green aluminium, in early 2022. It has seen a successful uptake in Europe. We are well-resourced to continue servicing the global demand emerging for green aluminium in Europe and other parts of the world. Irrespective of CBAM, we have put into motion several decarbonisation initiatives. These include increasing the quantum of renewables in our energy mix and investing in technology to increase the operational efficiency of our plants to minimise our carbon footprint.
https://economictimes.indiatimes.com/small-biz/sustainability/how-vedanta-aluminium-is-reducing-greenhouse-gas-emissions-intensity-while-increasing-production/articleshow/103080398.cms
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