Brief Context
In News Recently, it has been observed that Carbon Capture and Utilisation (CCU) technologies are essential for achieving Indias 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, chemi
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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