As the leading gas distributor agency in India, GAIL has a pivotal role in helping the Indian Government achieve its net-zero ambitions. To reduce India’s dependence on carbon-intensive fossil fuels, GAIL is committed to increasing the share of natural gas in the country’s energy mix from 6.7% to 15% by 2030. GAIL has embarked on its net-zero journey and developed a decarbonization roadmap by setting a target to achieve net-zero (Scope 1 and Scope 2) status by 2040 while reducing Scope 3 emissions by 35% (from the baseline year of 2020-2021) by 2040.
GAIL plans to install 1 GW of renewable energy capacity by 2025 contributing to India’s NDC and accelerating its carbon neutrality efforts. The Company’s leadership is benchmarking efforts and innovative initiatives to deliver sustainable value and superior results to all stakeholders
Committed to our climate goals, we have aligned our strategy to the Task Force on Climate-related Disclosures (TCFD) which is available in the sustainability report.
GAIL has adopted a science-based approach and methodology to develop a comprehensive Net-Zero strategy roadmap. Based on the assessments, we have developed a clear carbon abatement roadmap with short-, medium- and long-term targets across Scope 1, Scope 2, and Scope 3. To accelerate the journey toward Net Zero, we have identified the following strategic pillars:
a) Operational Decarbonization: Operational Decarbonization includes the technology and initiatives taken by GAIL to reduce its direct in-house GHG emissions by means of energy efficiency, fuel switch, electrification, etc. The various initiatives planned/undertaken are:
b) Energy Transition: GAIL is exploring alternate green fuel sources to reduce its emissions. The various initiatives planned/undertaken are:
c) Carbon Capture Utilization and Storage (CCUS): GAIL has partnered with esteemed institutions to undertake four significant R&D and pilot projects aimed at developing effective CCUS technology. These initiatives reflect GAIL’s commitment to driving sustainable innovation. The projects include:
d) Nature-Based Offsetting: In FY 2022-23, GAIL planted 1,67,854 trees for nature-based offsetting, with 1,56,465 trees at the PATA plant. GAIL plans to enhance reforestation with the "Miyawaki Forestry" technique and extensive plantation.
The importance of decarbonization has been felt across the globe. We recognize the urgency of climate change and the need to work collaboratively in a scientifi c and practical manner. Thus, GAIL under the guidance of the Government of India’s Principal Scientifi c Adviser (PSA) will work towards making its operations carbon Neutral or achieve Net Zero GHG Emissions. This can substantialize by setting ambitious goals, which will be based on the capacity of GAIL while at the same time encouraging innovation and creativity. The sharing of ideas and knowledge will be a continuous and fruitful collaboration, extending to exploring new ways of waste management at GAIL, and mainstreaming more SDGs with the business actions and decisions. Our management is already in action to fulfi ll our carbon neutral ambitions.
GAIL has set a remarkable target to install 1 GW capacity of Renewable Energy in the coming years, to signifi cantly contribute to India’s NDC as well as help in making GAIL Carbon neutral at the earliest along with more explored benchmarking eff orts and initiatives. The members of GAIL across all departments share the following vision for action against climate change which assist us in working in a collaborative and coordinated manner towards achieving Sustainability and Carbon Neutrality:
The impact of climate change on the availability of crucial natural resources such as water are quite evident. That is why at GAIL, we have implemented water conservation and management systems at all the sites to use water judiciously and incorporate circularity in its use, wherever possible. The plantations and expansion of green belt across several sites of GAIL are aimed to contribute to replenishment of ground water level while acting as carbon sink.
The area of transition in technology, management as well as finance tools for climate change adaptation are evolving every day, a dedicated R&D team at GAIL is motivated to carry out research for bringing out best practice which will contribute to Sustainability and Climate Change action.
The transition to cleaner sources of energy require the proper capacity in terms of financial tools along with accountability being taken for the activities which contribute to emission. The strategy to deal with both these requirements has been believed to be achieved by Carbon Pricing. GAIL is positive to bring internal carbon pricing within its business activities to uncover new areas of climate adaptation and mitigation.
GAIL has assessed the risk potential of various sites to sea storm surges, cyclone, excessive rains & flood and suggested important actions for each department and individual before, during and after such events. Additionally, mitigation measures are also taken into consideration at design stage prior to construction. Currently all the sites located in the coastal parts of India are incorporating flood mitigation measures. GAIL has also setup a Crisis Management Plan for safe shutdown. As per our assessment, cost of the plant shutting down one of our major plant in Pata for one day due to climate risks such as flooding would be INR 8 crore. Cost of the response of the risk is estimated around INR 10 crore for making flood defense system at Pata. Please refer to Carbon Disclosure Project (CDP) report for more details. We are working on building more comprehensive plan to adapt against climate change impact.
In the year 2019, GAIL framed ‘Strategy 2030’ to define the journey through the next decade. It aims at building a strong business portfolio and organization structure, which are not only robust enough to respond to the fast-changing business scenario but also unlock long-term growth opportunities of the Company and in turn deliver long term value to stakeholders. GAIL is continuously exploring new business opportunities, which have the potential to offer future growth engine and substantially add value to the portfolio.
GAIL is continuously exploring new business opportunities, which have the potential to offer future growth engine and substantially add to the portfolio. GAIL is exploring the possibility of setting up a 500 KLPD Ethanol Plant for ethanol blending Purpose. This is also a steps towards meeting the target of 20% ethanol blending in petrol by 2025. To promote new technologies, GAIL has invested in startups, which focus on new technologies like Electric Vehicles, digitization, etc.
GAIL continues to be a preferred supplier for end users and has tied-up a substantial volume of new/renewal contracts with key customers during the financial year. GAIL is also prioritizing the CGD industrial sector, refineries and units using alternate fuels like LPG/furnace oil to supply them natural gas as an alternate fuel. GAIL group companies are installing over 23 LNG stations along Golden Quadrilateral and other major highways, of which construction activities have commenced for six LNG stations.
GAIL has strengthened its core businesses across natural gas value chain. Natural gas is the cleanest fossil fuel which when burned, releases 50% less CO2 than coal and 20-30% less than oil. By virtue of inherent characteristics of natural gas being a cleaner alternative to other polluting fuels, GAIL has been consistently working on accelerating and optimizing the effective and economic use of natural gas and its fractions for the benefit of the national economy
GAIL recognizes that gas can play the role of bridge fuel substituting dirty fuels ensuring sustainable energy security without impacting the economic growth of India. Natural gas can further contribute to reduce the rising urban pollution including vehicular pollution in Indian cities and help the endusers to reduce carbon emissions in their supply chain.
GAIL has undertaken various studies for on areas of gas advocacy ranging from its demand assessment in Refinery Sector, Steel Sector, the potential of natural gas as a replacement for solid and liquid polluting fuels consumption in industries under any CGD GAs. Further, analysis on competitiveness post inclusion under GST for industries has been carried out by GAIL. Also, GAIL has assisted the Govt. in development of a vision of Oil & Gas sector and formulation of policy for the development of CGD sector in India
GAIL is committed to increase offering of seamless and transparent pipeline access to its customers. An online portal was launched in 2018 for displaying and online booking of GAIL’s pipeline capacities. This platform is available 24x7 and can be accessed through mobile device. Around 1800 Capacity Tranche (CT) requests have been processed through the portal during FY 19-20. Further, to ensure higher utilization of the commissioned trunk pipelines, 8 new Last Mile Connectivity and 5 Hook-ups were completed to supply/transport gas during FY 19-20.
GAIL is interacting with various Indian industry associations including FIPI, CII, FICCI etc. on economic and sectorial reforms required by Indian gas sector post-COVID-19 and the need for policy support for clean and sustainable energy. GAIL has been consistently engaged with global associations like IGU on sustainable energy policy and reforms required in the gas sector.
In Paris climate agreement, India has pledged to reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level.
Natural gas being the cleanest fossil fuel, when burned, releases 50% less CO2 than that of coal and 20-30% less than oil. By virtue of inherent characteristics of natural gas, being a cleaner alternative to other polluting fuels. Further, it will help in generating clean power in tandem with renewable energy.
GAIL has been consistently working on accelerating and optimizing the effective and economic use of natural gas and its fractions for the benefit of the national economy. The Indian government is committed to moving towards a gas-based economy by raising the share of natural gas in India’s energy basket from the current 6.2% to 15% by 2030 to support the transition to a lowemission future.
Methane that is one of the components of the Natural gas has a higher global warming potential and a lower emission rate during burning. During natural gas transmission, particularly between the pumping and storage operations and between the storage station and the end-user, some amount of gas escapes into the atmosphere, thus reducing the amount that is sold by operators to the market. For a natural gas marketing and distribution company like GAIL, it is prudent to manage emission rates due to environmental and economic impact. We continuously strive to reduce leakage during transmission with the assistance of our industry peers to establish effective strategies to detect and reduce potential leaks.
At our sites number of initiatives are taken to reduce electricity and fuel consumption. These intiatives are covered in detail in Energy and Environment Chapter. In FY 2020-21, we sold 89.2 MMSCMD of natural gas to our customers. It can be considered as energy consumption outside the organisation. However, it should be noted that usage may vary as per customers i.e. fertilizer primarily uses natural gas for feedstock, whereas as sectors are for direct heating and electricity. Our pipelines are reaching upto far remote areas which is reducing cost as well as emission associated with LPG/CNG transportation. Natural gas being the cleanest fossil fuel helping industries to reduce their emission by replacing
In the Paris Agreement, India has committed to Nationally Determined Contributions (NDC) target of reducing India’s emissions intensity by 33-35% from 2005 levels by 2030 by achieving 40% of its total electricity generation from nonfossil fuel sources. Accordingly, Government of India (GoI) has set a target of installing 175 GW of RE capacity by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from biopower and 5 GW from small hydro-power. GAIL’s ‘Strategy 2030’ also recommended for building new businesses with long term potential and investing in renewables through Mergers and Acquisitions (M&A) and or developing renewable energy plants through bidding route wherever investment would fetch reasonable returns.
GAIL intends to set up solar PV projects in order to reduce carbon footprints and contribute to clean energy mechanism at National level. In line with above, GAIL is exploring various opportunities in solar with an objective to have a sizeable solar portfolio.
For organic growth in solar sector, GAIL is participating through bidding in the forthcoming Solar Tenders floated by various Government Agencies like SECI, NTPC, etc. for developing green field projects, mainly solar projects as Independent Power Producer (IPP).
GAIL shall Participate in solar tenders with the minimum capacity of 100 MW and continue to participate till the cumulative awarded capacity reaches 500 MW.
GAL is committed to reduce its carbon footprint and implement renewable projects and it has a total installed capacity of 130.6 MW of alternative energy. Further, we have announced the installation of 1000 MW of renewable energy to meet our carbon neutral efforts.
Our target is to add 1 gigawatt of renewable energy through solar and wind both together or any other renewable part. And towards that we are doing both inorganic and organic efforts to achieve the same. We have chalked out around INR 4000 to 5000 crore to achieve our target, if we get good projects we can even exceed this target. GAIL needs 800 MW of renewable energy to become carbon neutral. Through 1 GW of renewable energy we can go beyond net zero carbon emissions.
Trees are the lowest hanging fruit when it comes to mitigating direct emissions. GAIL recognizes the importance of Nature based solutions to deal with climate change. GAIL is on a path to work with the best knowledge and expertise holders, by signing an Memorandum of Understanding (MoU) with the Principal Scientific Adviser (PSA) to the Government of India. This collaboration will set stones to the journey ahead to establish relevant impactful projects on topics, which will include setting up Afforestation projects following the Miyawaki technique to enhance the carbon sink, preserve biodiversity, mainstream nature based solutions to deal with issues of pollution and ultimately address the fight of climate change. In FY 2020-21, 6,000 trees were planted under CSR activities.
To provide sustainable alternative towards affordable transportation as a developmental effort that would benefit everyone; GAIL and its CGD JVs, and GAIL Gas Limited and its JVs have invited expression of interest and issued letters of intent for Sustainable Alternative Towards Affordable Transportation (SATAT) Initiative of GoI. GAIL is part of SATAT’ (Sustainable Alternative Towards Affordable Transportation) initiative launched by the Ministry of Petroleum and Natural Gas to promote Compressed Bio-Gas (CBG) as an alternative, green transport fuel.
Bio-Gas is produced naturally through a process of anaerobic decomposition from waste / biomass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has pure methane content of over 95%.
Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential. With calorific value (~52,000 KJ/kg) and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel. Given the abundance of biomass in the country, Compressed Bio-Gas has the potential to replace CNG in automotive, industrial and commercial uses in the coming years. The potential for Compressed Bio-Gas production from various sources in India is estimated at about 62 million tonnes per annum.
Understanding the benefits of CNG, GoI announced Sustainable Alternative Towards Affordable Transportation (SATAT) scheme an initiative aimed at setting up of Compressed Bio-Gas production plants and make it available in the market for use in automotive fuels by inviting Expression of Interest from potential entrepreneurs. The initiative was launched in October 2018 by the Ministry of Petroleum & Natural Gas in association with Public Sector Undertaking (PSU) Oil Marketing Companies (OMC).
GAIL has taken the decision of venturing into CBG business by setting up CBG production plants. GAIL is setting up its first CBG plant of 5 TPD CBG production capacity in Ranchi and has signed concession agreement for 22 years with Ranchi Municipal Corporation for supply of Municipal Solid Waste (MSW) and associated infrastructure for setting up CBG plant at Ranchi. This will enable provision and supply of Compressed Bio-Gas (CBG) from the plants processing biomass/waste to various Retail Outlets of CGD companies across India.
GAIL is also executing the CBG plants where we are arranging the marketing agreement with the manufacturer of the CBG, and these will be the private entrepreneurs, and our City Gas companies will be buying that natural gas from those entrepreneurs. GAIL will be implementing a synchronization scheme of this natural gas which is produced from CBG with City Gas. So, we will be mixing and synchronizing both the gases and supplying to the individual CDG companies.
As an attempt to support the MOEFC, and SATAT vision of setting up 5,000 CBG (Compressed Bio-Gas) plants, GAIL has worked towards setting up this Carbon friendly technique of energy supply, GAIL’s Start-Up initiative ‘Pankh’ which was launched to build a strong eco-system for nurturing innovation and the spirit of entrepreneurship has signed 5 investment agreements worth INR 15.30 crore with Start-Ups operating in the area of Compressed Bio-Gas (CBG) in FY 2020-21. In the similar direction GAIL is also exploring options for the use of bio organic waste feedstock for the production of Bio-Gas through anaerobic digestion. Food waste, for instance, due to their relatively high starch and protein contents and high biodegradable nature, is a suitable organic source for Biomethanation. In this direction, GAIL in collaboration with CSIR-IICT, Hyderabad, is developing high rate bio- methanation process for the generation of methane enriched Bio-Gas (more than 90%) from food waste. The main emphasis of the project is on development of an anaerobic digester system for generation of enriched Methane.
Government of India (GoI) has resolved to supply Ethanol Blended Petrol (EBP) with the objective of reducing oil import and has fixed a target of 10% blending by 2022 and 20% by 2025. In line with GoI’s vision, GAIL is exploring business opportunity in setting up ~ 500 KLPD 1G (first generation) grain-based Ethanol Plant for Ethanol Blended Petrol (EBP) Programme. Use of this E20 (Ethanol – 80% and Petrol – 80%) fuel is expected to reduce carbon monoxide emission by 30-50%.
In India, usage of Hydrogen as an alternative fuel is a relatively new area for which companies from various domains are evaluating the business potential. GAIL is also exploring the possibilities to blending green Hydrogen with natural gas in pipelines at pilot scale, which is a path breaking step in CGD sector. In future, Hydrogen can provide a supplementary role to fossils, renewables and batteries, in a transition towards carbon neutral economy.
The research and development team of GAIL is working to investigate the combustion and emission phenomena of dual fuel (CNG & Diesel) light-duty high speed direct injection Compression Ignition engine, and to minimize NOx, Particulate Matter (PM) and reduce CO2 emissions coupled with fuel efficiency improvement, with IIT-Bombay.
To take forward research efforts in the direction of developing feasible solutions for bulk utilization of CO2, GAIL is developing novel and cost-effective catalyst for production of carbon dioxide-based poly carbonate diol polymers in association with IISER, Tirupati. This project also aims to find an optimal condition to incorporate maximum of - 45 - 47 wt. % CO2 in the polymeric product under milder reaction conditions with minimal additional energy input and less byproduct formation. Thus any success in the development of above versatile catalyst for the conversion of CO2 to Polycarbonate Polymer can provide immense benefit and mitigation of CO2 emissions. Another great innovation is being performed at GAIL Pata Site with A pilot project for direct fixation of CO2 using microalgae in a raceway reactor is being undertaken to absorb the carbon from the atmosphere and combat climate change.
As per World Health Organization (WHO) report 2018, 11 of the 12 cities with the highest particulate pollution in the world are in India. Natural gas is one of the cleanest fossil fuels and it is an emerging fuel alternative. According to the National Energy Technology Laboratory (NETL), ‘Natural gas emits 50-60% less carbon dioxide (CO2) when combusted in a new, efficient natural gas power plant compared with emissions from a typical new coal plant’.
GAIL, as nation’s flagship organization to deliver accessible and affordable natural gas to citizens pan-India, strives to enable behavioral change through various initiatives. Hawa Badlo campaign is such an initiative that further our efforts in this regard.