# How to Get a Green Loan for a Chemical Plant in Vapi, Ankleshwar or Dahej

Canonical: https://senseible.earth/climate-intelligence/green-loan-chemical-plant-gujarat

Published 2026-10-13.

South Gujarat's chemical belt runs along the highway from Vapi through Ankleshwar to Dahej. Dyes, pigments, agrochemicals, specialty and bulk chemicals: thousands of plants, from family-run reactors to large integrated sites. What they share is a need for steam and power around the clock, and buyers abroad who now ask about both.

The question this article answers is how a Gujarat chemical maker can finance lower-emission steam and power, and what a lender wants to see.

## Where the emissions are

For most chemical plants, two utilities carry the bulk of direct and energy emissions:

- **Steam** from boilers, many still on coal, lignite or furnace oil, for reactors, distillation and drying.
- **Electricity** for agitators, pumps, chillers and compressors, bought from the grid or generated on site.

Process emissions matter for a few products, such as nitric acid and ammonia, which fall under the EU's Carbon Border Adjustment Mechanism as fertiliser inputs, and hydrogen. Most specialty and dye chemicals are outside CBAM today, but EU customers ask for product footprints under their own reporting.

## What others in the belt have done

Published examples show the main routes. Deccan Fine Chemicals reported that from July 2023 it met more than half of the power needs at its Ankleshwar site from a wind and solar hybrid supply. Gujarat Alkalies and Chemicals reported a green energy share of 35.7 percent in the quarter to December 2025. At Dahej, Arete Group's planned industrial park was reported to use biomass-fired steam boilers instead of coal.

## What green finance can pay for

- **Boiler fuel switching** to biomass, natural gas or electric boilers where the economics work.
- **Condensate recovery and heat integration** to need less steam in the first place.
- **Open-access wind and solar,** or rooftop solar for daytime load.
- **Efficient chillers, compressors and drives.**

The Bureau of Energy Efficiency has published energy conservation manuals for the Vapi chemicals and dyes cluster, useful when preparing a project report. SIDBI and commercial banks finance these projects; Ankleshwar has also been among clusters targeted by energy efficiency programmes that support access to finance.

## What the lender will ask for

1. **Fuel invoices** by type and calorific value, and electricity bills, for twelve months.
2. **Steam generated** and production by month, so energy per tonne of product can be stated.
3. **The project report** with the expected saving and how it will be metered.

For the emission factors behind those invoices, see [coal](https://senseible.earth/emission-factors/coal), [furnace oil](https://senseible.earth/emission-factors/furnace-oil) and [PNG](https://senseible.earth/emission-factors/png). For the loan process, read [how to get green loans using carbon data](https://senseible.earth/climate-intelligence/how-to-get-green-loans-india-carbon-data).

Confirm current eligibility and terms with the lender before you apply.

## Related guides

- [green loan for a ceramic factory in Morbi](https://senseible.earth/climate-intelligence/green-loan-ceramic-factory-morbi)
- [green loan for a steel business in Johannesburg](https://senseible.earth/climate-intelligence/green-loan-steel-business-johannesburg)
- [green loan for a garment factory in Dhaka](https://senseible.earth/climate-intelligence/green-loan-garment-factory-dhaka)
- [green loans for steel MSMEs in Ludhiana](https://senseible.earth/climate-intelligence/green-loan-steel-msme-ludhiana-raipur)