Syllabus: GS3/Environment
In News
- Recently, it has been observed that Carbon Capture and Utilisation (CCU) technologies are essential for achieving India’s net-zero emissions targets, particularly for hard-to-abate sectors like cement.
Carbon Capture and Utilisation (CCU)
- It refers to a set of technologies that capture carbon dioxide emissions from industrial sources or directly from the air and convert them into useful products.
- It removes carbon from the atmosphere and puts it into the economy as inputs for fuels, chemicals, building materials, or polymers.
- Unlike carbon capture and storage, where captured CO₂ is permanently stored underground rather than reused, CCU uses up the captured carbon.
Global Scenario
- The EU Bioeconomy Strategy and Circular Economy Action Plan explicitly supports CCU as a way to turn CO₂ into feedstocks for chemicals, fuels, and materials, linking it to circularity and sustainability targets.
- ArcelorMittal and Mitsubishi Heavy Industries, Ltd. are working with a climate tech company, D-CRBN, to trial a new technology to convert CO2 captured at ArcelorMittal’s plant in Gent, Belgium into carbon monoxide which can be used in steel and chemical production.
- The U.S. uses a combination of tax credits and funding to scale CCUs, particularly for CO₂-derived fuels and chemicals.
- The UAE’s Al Reyadah project and planned CO₂-to-chemicals hubs leverage CCU with green hydrogen.
Need in India
- India has consistently been the world’s third-largest emitter of CO₂, with emissions driven largely by power generation, cement, steel, and chemicals.
- While renewable energy may reduce future emissions, many industrial processes are inherently carbon-intensive and difficult to decarbonise.
- CCU offers a pathway to reduce emissions from these “hard-to-abate” sectors while simultaneously creating new industrial value chains.
- It also aligns with India’s net-zero target for 2070 and its push to build a circular, low-carbon economy.
Progress and Initiatives
- India has begun supporting CCU through research funding from the Department of Science and Technology which has created a specific research and development roadmap for these technologies.
- The Union Budget 2026-27 has announced a Rs 20,000-crore scheme to scale up carbon capture, storage and utilisation across five high-emitting industrial sectors.
- The move aims to move CCUS from pilot projects to policy-backed deployment as part of India’s net-zero by 2070 commitment.
- The draft 2030 roadmap for Carbon Utilisation and Storage (CCUS) presented by the Ministry of Petroleum and Natural gas has identified projects that can be used for CCUS purposes.
- In the private sector, Ambuja Cements (Adani Group) is working on an Indo-Swedish CCU pilot with IIT Bombay to convert captured CO₂ into fuels and materials.
- JK Cement is collaborating on a CCU testbed to capture CO₂ for applications such as lightweight concrete blocks and olefins.
- Organic Recycling Systems Limited (ORSL) is leading India’s first pilot-scale Bio-CCU platform, valorising CO₂ from biogas streams into bio-alcohols and specialty chemicals.
Key risks in scaling CCU (Carbon Capture and Utilization) in India
- High Costs – Capturing and converting CO₂ is energy-intensive, making CCU products expensive compared to fossil-based alternatives.
- Infrastructure Gaps – Effective CCU requires co-located industrial clusters, CO₂ transport networks, and integration with downstream manufacturing, which are unevenly developed.
- Regulatory and Market Uncertainty – Lack of standards, certification, and clear market signals discourages investment and limits demand for CO₂-derived products.
Conclusion
- CCUS technologies are essential for hard-to-decarbonize industries like steel and cement, where most CO₂ comes from production processes rather than fuel use.
- The ₹20,000 crore budget allocation aims to develop CCUS applications in power, steel, cement, refineries, and chemicals, helping reduce emissions
- India has taken positive steps through the development of roadmaps to achieving CCU, and their appropriate implementation will be necessary for achieving India’s goals.
Source :TH
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