Khushboo Bhatia

As the CEO of TOESL, a company at the forefront of sustainable energy solutions, I am often asked one critical question: Why should manufacturers switch to green utility solutions? The answer lies not just in addressing environmental concerns but in driving long-term business success, resilience, and leadership in sustainability.

The global business landscape is rapidly evolving, and manufacturers must recognize that adopting sustainable utility solutions is not just a trend — it’s a necessity. Almost all manufacturing sectors, including food, pharma, textiles, and chemicals, require significant energy in the form of steam or thermic fluid for their operations. Conventionally, this energy has been generated through fossil fuels, a practice that is becoming increasingly unsustainable both economically and environmentally.

As manufacturers strive to meet their Environmental, Social, and Governance (ESG) goals, switching to green energy solutions offers an unprecedented opportunity for leadership. Here’s why.

Securing Energy Independence and Cost Efficiency

In today’s volatile energy market, the fluctuating prices of fossil fuel leave manufacturers exposed to unpredictable supply challenges that can erode profitability. Manufacturers can significantly reduce their dependency from global supply chain disruptions by adopting green energy that utilizes locally sourced biomass fuels.

Along with energy security and reliability, renewable energy solutions also deliver long-term cost savings. While initial capital expenditures may be higher, the operational costs are lower, especially considering the increasing cost of fossil fuels and the taxes associated with carbon emissions. This shift presents a unique opportunity for manufacturers to future-proof their operations against energy price shocks while lowering their total cost of energy.

Driving Innovation for a Sustainable Future

Adopting green utility solutions is about more than just replacing fossil fuels with green fuels like agricultural residue or conserving water through effluent treatment technologies like Zero Liquid Discharge (ZLD). It’s about embracing innovation and being ready for the future. Technological advancements in renewable energy are rapidly increasing performance and equipment uptime, making these solutions more viable and cost-effective for manufacturing industries. For instance, we have made significant strides in battery technology for renewable storage, such as solid-state batteries as a safer, more efficient alternative to liquid electrolyte batteries and grid-scale storage implementation that helps with grid stability and accommodates growing share of renewable energy. Similarly, biomass boilers are now more efficient and can cater to a wider range of agro-waste biomass fuels, tapping into unutilized residues making utilities sustainable and economically attractive. We are also seeing increased investments in green hydrogen, with the Green Hydrogen Mission launched in 2021, international collaborations and several pilot projects that are underway to demonstrate the feasibility of green hydrogen, especially for industrial processes and energy storage.

Sustainability is no longer optional. Those who lead this transformation will be the ones to capture new market opportunities and position themselves as pioneers in their industry.

Staying Ahead of Regulatory Challenges

Environmental regulations are tightening across the globe. For example, the European Union implemented the Carbon Border Adjustment Mechanism (CBAM) as a regulation to reduce carbon emissions by imposing a tax on carbon-intensive imports such as iron, steel, aluminium, cement, fertilizers, electricity and hydrogen. Such carbon taxes, emission reduction targets, and strict environmental compliance laws are reshaping the way industries operate. Manufacturers that fail to reduce their carbon footprint will face increasing financial penalties and operational constraints, placing them at a competitive disadvantage.

By switching to renewable energy, manufacturers can significantly reduce their carbon emissions and be better positioned to meet future environmental regulations.

Embracing ESG Leadership through Social Responsibility

Manufacturers that adopt green utility solutions are taking a leadership position in the global sustainability movement. ESG metrics are no longer a “nice-to-have”; they are becoming essential indicators of a company’s long-term viability and attractiveness to stakeholders. By switching to green utilities, companies can significantly reduce their environmental impact, contribute to local economies, and demonstrate genuine corporate responsibility. It is an opportunity to create a legacy of sustainable leadership that resonates with customers, investors, and employees alike.

A Call to Lead

As manufacturers, the choices we make today will determine the future of our industries and our world. The companies that choose green utilities today will secure energy stability, reduce costs, and meet the stringent regulatory requirements of tomorrow, all while fulfilling their social responsibility, and emerge as leaders in the global movement toward sustainability. Will your company be one of them?

The author is CEO, Thermax Onsite Energy Solutions Limited (TOESL). Views are personal, and do not represent the stand of this publication.