Green Power Procurement in Bulk Chemical (Chlor- Alkali) Sector in India
Case Study: DCM Shriram Ltd
Bulk chemicals, also known as commodity or basic chemicals, are produced in large volumes and serve as essential raw materials for various downstream industries. Among them, alkali chemicals or chlor-alkali sector constitute the largest segment within India’s bulk chemical sector. India accounts for over 6% of the global chlor-alkali market in 2023.
The chlor-alkali manufacturing process is highly energy-intensive, and electricity represents the dominant energy input with a share of over 90%. Overall, the chlor-alkali manufacturing process consumes around 2.2 – 2.9 MWh of electricity and emits 40 – 59 kg CO2 equivalent per metric ton of chlorine. Most of the sector’s greenhouse gas (GHG) emissions stem from electricity consumption, which is largely coal-based, especially among large-scale producers that rely on captive power generation.
In response to growing environmental concerns, regulatory mechanisms such as the Greenhouse Gases Emission Intensity Target Rules, 2025, are being introduced. These rules mandate leading chlor-alkali producers to reduce their GHG emission intensity by 2 – 3% annually starting from 2026, with the sector’s average emission intensity expected to decline to around 1.65 tCOâ‚‚e per tonne of production by 2030, an estimated 12% reduction vis-à -vis FY2024 levels.
Decarbonizing the chlor-alkali segment will require a multipronged strategy that balances economic viability with technological feasibility ranging from process efficiency improvements and infrastructure upgrades to fuel switching and circular resource flows. Among the available decarbonization levers, renewable energy adoption stands out as one of the most commercially viable and mature pathways.
As one of the leading industrial chlor-alkali producers in India, DCM Shriram is actively pursuing sustainability-driven growth. The company is the country’s second-largest domestic producer of caustic soda. It is scaling strategic investments in renewable energy across its operations and value chains, currently operating a 43.8 MW wind-solar hybrid plant, with plans to expand this capacity to 118.4 MW by FY2026.
This case study has been developed to illustrate how leading companies in the energy-intensive chlor-alkali segment of the bulk chemical sector are responding to emerging regulatory mandates and decarbonization pressures. By examining DCM Shriram’s renewable energy procurement strategy, the report highlights practical measures being adopted to reduce grid dependency and lower emission intensity. The aim is to highlight real-world approaches to reducing emission intensity and grid dependence in high-emission industries.
Table of Contents
- Indian Chemical Industrial Sector Overview
- Sector Overview
- Manufacturing Process
- Ways to Decarbonize
- Case Study – DCM Sriram Limited
- Company Overview
- Business Segments
- Sustainability Initiatives and Targets
- DCM Shriram energy consumption and emissions
- RE Installations and Consumption
- Renewable Energy Benefits
- Other Decarbonization and Sustainability Measures
- Conclusion
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