GAIL to achieve net-zero emissions by 2040, says Chairman

• GAIL intends to achieve a 100 percent reduction in Scope 1 and Scope 2 emissions and a 35 percent reduction in Scope 3 emissions by 2040
• GAIL is setting up a green hydrogen production unit with a capacity of 4.3 tonnes per day at Vijaipur in Madhya Pradesh

New Delhi: GAIL (India) Ltd, India's largest gas firm, is targeting net-zero carbon emission from its operations by 2040, ahead of targets set by other state-owned firms, chairman Manoj Jain said on Friday. "In line with India's vision to achieve net zero by 2070, GAIL has completed a comprehensive study on science-based net-zero ambition and intends to achieve a 100 percent reduction in Scope 1 and Scope 2 emissions and a 35 percent reduction in Scope 3 emissions by 2040," said Jain on Friday.

Net zero, or becoming carbon neutral, means not adding to the amount of greenhouse gases in the atmosphere.

India, the world's fourth biggest emitter of carbon dioxide after China, the US and the EU, has committed to cut its emissions to net zero by 2070.

GAIL has started mixing hydrogen in natural gas

Addressing GAIL's annual shareholders' meeting, Jain said that the PSU "is committed to reducing its carbon footprint by diversifying into the renewable energy sector." He said that GAIL is taking steps to get a foothold in the transformational changes happening in the global energy sector.

The nation's largest transporter and marketer of gas has started mixing hydrogen in natural gas as a step towards introducing the carbon-free energy source in the system, he said. "The hydrogen blended natural gas is being supplied to Aavantika Gas Ltd, a joint venture of GAIL and HPCL, operating a city gas network in Indore," he said. "This project marks the stepping stone of India's journey towards a hydrogen-based and carbon-neutral future," said Jain.

It "has also embarked upon alternate energies like green hydrogen, renewables and bio-fuels projects which are of national importance and would likely provide a transition to the future," he said.

GAIL setting up green hydrogen production unit

GAIL is setting up a green hydrogen production unit with a capacity of 4.3 tonnes per day at Vijaipur in Madhya Pradesh. It is also setting up a 10 MW ground-mounted solar power project at Vijaipur.

Stating that GAIL has always been committed to the growth of a gas-based economy in India, Jain said that this project will prove to be a significant step in India's march towards achieving a carbon-neutral and self-reliant future.

Jain said global events during the previous year have the potential to alter the structural landscape of the energy sector.

The fiscal year ended March 31, 2022, witnessed extreme volatility in prices. "Adding to it, as COVID-19 restrictions around much of the world are relaxed and economic activity recovers, energy consumption is expanding sharply, putting available energy supplies under strain and highlighting fragilities in the system," he said.

GAIL, he said, is adding nearly 5,000 kilometres of gas transportation pipeline to its network of about 14,500 km of truck lines crisscrossing the country. The new lines will "bolster transmission quantities and provide extensive geographical reach within the country," he said.

Further, GAIL is looking for avenues to supply gas in new segments like LNG trucking. GAIL plans to enter into distributed LNG production with the vision to cater to the demand from off-grid locations and the transport sector, he added. The company is scouting for gas globally to consolidate its portfolio which consists of 14 million tonnes of liquefied natural gas (LNG) sourced from nations from the US to Australia.

Backdrop

GAIL's net zero announcement comes a day after Indian Oil Corporation (IOC) announced a Rs 2 lakh crore investment to achieve carbon neutrality in its operations by 2046. Most companies, including IOC, have announced net-zero targets for Scope 1 and 2 emissions only, while GAIL's announcement covers scope 1, 2 and 3 emissions.

Scope 1, 2 and 3 is a way of categorising the different kinds of carbon emissions a company creates in its own operations, and in its wider value chain. While Scope 1 emissions are direct greenhouse (GHG) emissions that occur from sources that are controlled or owned by an organisation (e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles), Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Scope 3 emissions are the ones that the organisation is indirectly responsible for, such as those of suppliers and customers of its products.

(With PTI inputs)

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