By Kalpana Sahoo
Introduction :
Carbon Capture, Utilization and Storage (CCUS) represents one of the most promising technological pathways for India to meet its net-zero emissions goal by 2070. In a developing economy like India—where coal, steel, and cement industries remain the backbone of growth—CCUS offers a way to reduce emissions from “hard-to-abate” sectors without slowing industrial progress. It not only helps mitigate carbon but also supports green jobs, innovation, and industrial competitiveness. This paper explores CCUS technologies, current policy frameworks, India’s innovation ecosystem, and presents a one-year flagship demonstration project concept as a practical roadmap to integrate CCUS into India’s decarbonization agenda.
1. The Imperative: Why CCUS Matters for India
India faces a dual challenge: sustaining robust economic growth while drastically reducing its carbon footprint. The country’s total CO₂ emissions exceeded 2.9 billion tonnes in 2024, making it the third-largest emitter globally (IEA, 2024). While renewable energy expansion is crucial, certain industrial processes—especially in cement, steel, and fertilizer—produce carbon emissions that cannot be eliminated simply by switching to renewables.
Here, Carbon Capture, Utilization, and Storage (CCUS) emerges as a strategic bridge technology. It captures CO₂ directly from industrial sources or the atmosphere and either stores it underground or repurposes it into valuable products such as fuels, chemicals, and construction materials (NITI Aayog, 2023).
For India’s net-zero journey, CCUS is vital because:
It retains industrial jobs while reducing emissions.
It supports energy security by making fossil-based systems cleaner during the transition.
It enables negative emissions through Direct Air Capture (DAC) in the long term.
2. Understanding the Technology: Capture, Transport, and Utilization
(a) Capture Technologies
Post-Combustion Capture: Absorbing CO₂ from flue gas using solvents like amines. Suitable for power plants and cement industries.
Pre-Combustion Capture: Separating CO₂ before combustion, often used in integrated gasification systems.
Oxy-Fuel Combustion: Burning fuel in oxygen rather than air to produce a CO₂-rich exhaust.
Direct Air Capture (DAC): Extracting CO₂ directly from ambient air — crucial for negative emissions, though currently expensive.
(b) Transport
Captured CO₂ is compressed and transported via pipelines, ships, or trucks to utilization or storage sites. Shared pipeline networks, or “CO₂ corridors,” dramatically lower costs.
(c) Utilization and Storage
Utilization: Conversion of CO₂ into urea, methanol, synthetic fuels, or concrete.
Storage: Permanent injection into deep saline aquifers or depleted oil and gas fields. India’s ONGC and NTPC have initiated exploratory studies on this (The Economic Times, 2025).
3. Government Policy and National Initiatives
India’s commitment to net-zero by 2070 under the Panchamrit Agenda emphasizes technology-based decarbonization.
Several national institutions are shaping India’s CCUS future:
NITI Aayog’s CCUS Roadmap (2023):
Identified 800+ MtCO₂/yr storage potential in saline aquifers and stressed the importance of developing cluster-based storage hubs in Gujarat, Odisha, and Tamil Nadu.Department of Science and Technology (DST):
Funding advanced R&D under the National CCUS Mission for low-cost capture solvents and CO₂ mineralization technologies.Ministry of Petroleum and Natural Gas (MoPNG):
Encouraging CO₂ utilization in enhanced oil recovery (EOR) in collaboration with ONGC and IndianOil.NTPC CO₂ Injection Project (2025):
India’s first successful pilot in Gujarat where NTPC injected captured CO₂ into deep geological formations, confirming technical feasibility (NTPC Report, 2025).Proposed ₹38,900 Crore National Carbon Capture Program (2025–26):
The central government has proposed a large-scale funding plan for industrial CCUS demonstration projects, including 50–100% financial support for select pilot initiatives (Economic Times, 2025; Reuters, 2025).
4. Economic and Technical Barriers
Despite its potential, CCUS faces multiple challenges:
5. Flagship Demonstration Project Concept (2025–2026)
Title: Project CarbonSmart — India’s First Integrated CO₂ Capture and Utilization Pilot Cluster
Duration:
12 months (January–December 2026)
Lead Agencies:
NTPC Limited (Lead Implementer)
In partnership with:
Department of Science and Technology (DST)
NITI Aayog
Indian Institute of Technology (IIT Delhi & IIT Kharagpur)
Private partners: Tata Chemicals, Dalmia Cement, and CarbonClean Tech
Objective:
To demonstrate an end-to-end CCUS system—capturing CO₂ from a 50 MW coal-based NTPC unit, transporting it through a short pipeline, and converting it into green methanol and carbonated building materials.
Components of the Project
1. Capture Module
Technology: Post-combustion amine-based capture unit designed by CarbonClean Tech India Pvt. Ltd.
Capacity: 60 tonnes of CO₂ per day.
Innovation: Integration of waste heat recovery from NTPC plant to reduce capture energy penalty by 25%.
2. Transport Network
1.5 km micro-pipeline connecting capture unit to the utilization cluster within NTPC’s industrial park in Dadri.
Safety systems based on ISO 27913 standards.
3. Utilization Unit
Green Methanol Conversion: Tata Chemicals will use catalytic hydrogenation to convert CO₂ into methanol using green hydrogen.
CO₂-cured Concrete Blocks: Dalmia Cement will produce CO₂-sequestered concrete pavers, locking carbon permanently.
4. Monitoring and Verification
Continuous CO₂ flow, purity, and lifecycle emissions monitored by IIT Delhi under DST’s CCUS Research Network.
Data shared with NITI Aayog for developing India’s National CCUS MRV (Measurement, Reporting & Verification) protocol.
Timeline & Milestones
Expected Impact
Reduction: ~20,000 tonnes of CO₂ captured and utilized within one year.
Products: ~5,000 tonnes green methanol, 15,000 tonnes low-carbon concrete blocks.
Employment: 300 direct and 1,000 indirect jobs in engineering, fabrication, and logistics.
Replicability: Blueprint for scaling CCUS hubs in Gujarat, Odisha, and Tamil Nadu.
Estimated Budget (₹ Crore)
Funding:
50% Government grant under the ₹38,900 crore CCUS Program (DST & NITI Aayog),
30% Industry contribution,
20% International Climate Technology Fund (proposed from UNIDO/World Bank partnership).
Outcomes & Replication Plan
By 2027, Project CarbonSmart will provide a techno-economic template for integrating CCUS with industrial clusters across India. The next phase (2027–2030) would replicate this model in Odisha’s industrial belt—targeting steel and fertilizer plants in Angul and Paradeep.
6. Policy Recommendations and Future Vision
Build Shared CCUS Hubs: Establish at least three national hubs by 2030 (Gujarat, Odisha, Tamil Nadu) with common CO₂ transport and storage networks.
Green Carbon Credits: Introduce tradable carbon credits for verified CO₂ utilization projects, similar to the U.S. 45Q tax credit.
R&D Acceleration: Expand the National CCUS Research Network under DST and CSR funding from large PSUs.
Regulatory Framework: Develop a Carbon Storage and Liability Act (India) defining ownership, monitoring, and safety obligations.
Inclusive Development: Embed local employment and skill-building clauses in CCUS project funding to ensure equitable benefits.
7. Integrating CCUS into India’s Smart, Fair Future
CCUS is not just a technology—it’s a transformation tool. It can:
Enable low-carbon industrial corridors,
Encourage circular carbon economies,
Support green job creation, and
Promote technological sovereignty in advanced clean-tech manufacturing.
By integrating CCUS with India’s National Hydrogen Mission and Make in India program, India can become a global supplier of CCUS technologies for the Global South, bridging sustainability with industrial progress.
8. Conclusion
Carbon Capture and Utilization is India’s pragmatic pathway to balance development and decarbonization. With proactive policy, innovation funding, and demonstration projects like Project CarbonSmart, India can position itself as a leader in industrial decarbonization technologies.
The success of this approach depends on innovation, collaboration, and fairness — ensuring that while emissions are reduced, opportunities are multiplied. CCUS thus becomes not just a tool to clean the air, but a catalyst for a cleaner, smarter, and fairer India.
References
NITI Aayog (2023). Carbon Capture, Utilization and Storage (CCUS) Roadmap for India. Government of India.
International Energy Agency (2024). India Energy Outlook.
Department of Science and Technology (2024). National CCUS Mission – Project Report.
NTPC Limited (2025). Gandhar CO₂ Injection Pilot – Technical Summary.
Reuters (2025). India to Offer Large Carbon Capture Incentives as Coal Remains Major Part of Energy Mix.
The Economic Times (2025). Centre Plans ₹38,900 Crore Carbon Capture Programme with Phased Rollout.
CarbonClean Tech India (2024). Innovations in Post-Combustion Capture for Industrial Applications.
Dalmia Cement (2024). Low-Carbon Construction Materials and CO₂ Utilization Report.
Ministry of Petroleum and Natural Gas (2024). EOR and Carbon Management Policy Discussion Paper.
World Bank (2025). Financing Carbon Capture Technologies in Emerging Economies.
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