Que: Can you tell us about Johnson Matthey and the role it plays in achieving net zero emissions?

Ans: Yes, of course. It’s a pleasure to explain a bit about what Johnson Matthey does. Johnson Matthey is a UK-listed company (PLC) with an annual turnover of around EUR 4 billion and approximately 12,000 employees. We operate across several businesses. One of our primary areas is the production of automotive catalytic converters, not only for cars and motorcycles but also to reduce pollutants from power plants and other industrial applications. We also have a unit that refines platinum group metals and another that manufactures fuel cells and electrolyzer components.

In my unit, Catalyst Technologies, we focus on converting raw materials—traditionally fossil-based like oil and gas, but now also including biomass, CO2, and even municipal solid waste—into the chemicals and fuels society needs. Our customers come to us with the raw materials they have and the products they want to make, whether it’s hydrogen, sustainable aviation fuel (SAF), or other chemicals. We then design the processes and catalysts required to convert those raw materials into the desired products.

Historically, we’ve worked more with fossil-based feedstocks, but today we’re increasingly developing processes for sustainable sources like biomass, which can produce lower-carbon methanol or SAF from non-fossil feedstocks. In this way, we’ve become more "raw material agnostic," meaning we can cater to the varying needs of our customers, no matter the type of raw material they are using.

In India, we’ve been active for over 60 years, primarily supplying the chemical, petrochemical, and oil & gas industries. We have nine production facilities here, employing around 1,000 people. While much of our production is for export, we are also focusing on expanding into the Indian engineering sector.

We have engineering centers in London and Manchester, and our new center in Mumbai allows us to work more closely with Indian customers. This local presence enables us to engage directly with customers, helping them design the plants and catalysts they need for their specific requirements. Our team in Mumbai can now offer face-to-face collaboration on everything from plant design to feasibility studies—such as evaluating the technical and economic feasibility of converting raw materials into methanol or other products.

While our Indian team focuses on local customers, they also contribute to projects around the world, working closely with our teams in London and Manchester. This global collaboration allows us to stay closely connected to the rapidly growing Indian economy, while also supporting our mission to drive sustainable solutions worldwide.

Que: India has set a target of 500 GW of renewable energy capacity by 2030. How can Johnson Matthey contribute to achieving this goal?

Ans: Yes, that's an ambitious and exciting target for India. When you look at hydrogen production, which is a crucial part of India's renewable energy roadmap, Johnson Matthey can play a key role.

We have technologies for blue hydrogen production, where natural gas is converted into hydrogen, and the CO₂ is captured and stored underground. However, in India's case, the focus is likely more on producing hydrogen from alternative raw materials, or through the electrolysis of water using renewable electricity—this is what we call green hydrogen.

Johnson Matthey contributes in several ways. We produce catalysts for hydrogen production and manufacture key components for electrolyzers, which are used to produce hydrogen from water. Additionally, we work with our customers in the electrolyzer space, forming consortia in India to develop and scale up electrolyzer production based on Johnson Matthey's components.

But once the hydrogen is produced, there are different ways it can be used. Some customers may use hydrogen directly, but many are interested in converting it into other products. For instance, hydrogen can boost yields in synthetic aviation fuel production, or it can be combined with carbon dioxide through our hydrogenation processes to produce methanol. Using Fischer-Tropsch technology, it’s even possible to convert CO₂ and renewable hydrogen into low-carbon fuels like methanol and sustainable aviation fuels (SAF).

Essentially, Johnson Matthey has developed various technologies that allow hydrogen and other raw materials to be converted into the chemicals and fuels needed for a low-carbon society. By contributing to hydrogen production and decarbonizing chemical and fuel manufacturing, we can support India's journey toward its renewable energy targets.

Que: Hydrogen is often touted as the fuel of the future, but there is some reluctance regarding its cost and adoption. What can be done to tackle this challenge?

Ans: Absolutely, that's an important point. When we look at hydrogen as a fuel, we need to recognize that it has to compete with the oil and gas industry, which has been optimized and scaled globally for more than a century. The hydrogen economy is still in its early stages—essentially, we are just at the beginning of the maturity curve.

Initially, low-carbon products, including hydrogen, will have a higher cost associated with them. However, there are customers in various sectors of the chemicals and fuel industry who are willing to pay a premium for these sustainable options.

Another significant factor is that in many countries, there are mandates for sustainable aviation fuels (SAF), which hydrogen can help produce more efficiently. Hydrogen plays a crucial role in accelerating the production of synthetic aviation fuels from sources like biomass, municipal solid waste, and CO₂. Given the current insufficiency of sustainable aviation fuel to meet these mandates, hydrogen becomes even more vital.

To further promote the hydrogen economy, close collaboration with governments is essential. In the U.S. and other countries, initial subsidies and financial assistance will be crucial to kick-start the industry and bring it to scale. This collaboration between government and industry is necessary to ensure that the first molecules of hydrogen produced are affordable.

For India, aiming for net-zero emissions by 2070, hydrogen will be indispensable. Society must collectively consider how to scale the hydrogen economy effectively. This is where initial incentives come into play; once the industry reaches scale, hydrogen will become increasingly competitive in terms of cost. By fostering this collaboration and investment now, we can make significant strides in establishing hydrogen as a cornerstone of a sustainable energy future.

Que: Northern cities in India face the significant problem of stubble burning during the winter season, which greatly contributes to air pollution. How can Johnson Matthey collaborate with the government to tackle this issue in the future?

Ans: That’s an excellent point. In many countries with advanced agricultural economies, the practice of burning residual biomass from fields is common, leading to substantial CO₂ emissions and particulate matter pollution. This not only harms air quality but also poses health risks for residents in those areas.

To address this issue, I can share an example of one of our customers, DG Fuels, based in Louisiana, USA. They are developing a plant that will purchase residual biomass from local farmers, which they will then convert into sustainable aviation fuel (SAF). By doing so, they are turning what would otherwise be waste into a valuable product while also creating a new revenue stream for farmers. This model can certainly be replicated in India, as well as in other countries like Brazil.

Instead of burning stubble, farmers could collect and sell their residual biomass to a sustainable aviation fuel plant. This not only reduces pollution from burning but also generates additional income for farmers. Moreover, by producing SAF domestically, India can decrease its reliance on fossil fuels and enhance its energy self-sufficiency, all while benefiting from lower carbon-intensity fuels.

The technology for this process is ready and available from Johnson Matthey. Just like DG Fuels, we can provide this technology at scale and ensure its reliability. We are eager to engage with companies in India interested in conducting techno-economic evaluations of converting residual biomass into valuable products.

We would welcome the opportunity to collaborate with the government and local stakeholders to explore these possibilities further and help address the stubble-burning problem in northern cities.

Que: Are you looking towards any policies that could increase international collaboration between countries in the pursuit of net-zero emissions?

Ans: Yes, we actively engage with governments and trade associations worldwide. However, as a relatively small player in this vast global arena, we recognize the importance of collaboration. It's essential for us to understand the goals of each country and explore how we can support them based on successful strategies we’ve observed in other nations.

Our approach involves sharing insights on what has worked in other countries to scale low-carbon chemicals and fuels industries. We can facilitate dialogues among various stakeholders and bring in different parties to enhance these discussions.

Moreover, we strive to provide thought leadership, showcasing the potential of various technologies. There’s an educational aspect to our role; many people are often surprised by what can be achieved with municipal solid waste, residual biomass, or even converting CO₂ into useful products. For instance, with sufficient renewable hydrogen, it's possible to create chemicals and fuels from CO₂. We even have customers who capture CO₂ from the air and convert it into gasoline.

While not all these processes are currently economical, embarking on this journey is crucial. By scaling these industries, costs will decrease over time. We have numerous innovative customers globally who are utilizing our technologies to convert available raw materials into valuable molecules, and we believe this is a path worth pursuing together.

Que: What challenges do you face while exploring the Indian market, and how are you tackling them?

Ans: We've been active in the Indian market for 60 years, so we have a good understanding of its dynamics. However, there are still many areas, particularly in the biomass sector, where we need to deepen our knowledge. While our primary customers have traditionally focused on chemical production, we're now looking to expand into the energy sector, which presents a vast opportunity.

To address these challenges, we're intensifying our relationships with customers across different industries, especially in the hydrogen, methanol, ammonia, and sustainable aviation fuel spaces. Our recent expansion of the engineering hub is part of this strategy, allowing us to be closer to our customers and better understand their needs.

Additionally, while we've received considerable support from both the Indian government and local authorities, we recognize that navigating the regulatory landscape can be cumbersome. Like many large countries, India has its share of red tape. Efficient permitting processes are crucial for achieving net-zero goals. For instance, in Europe, obtaining permits for infrastructure projects, like new electricity cables, can take years, which hampers progress.

For countries striving for net-zero emissions, including India, it’s vital to streamline these processes. This includes addressing permitting delays and fostering a strong government push for infrastructure development. Simplifying regulations, providing subsidies, and enhancing infrastructure like pipelines and electricity grids are essential elements for a thriving low-carbon society. All countries need to adopt a more proactive approach to accelerate progress toward the net-zero targets they have committed to achieving.