Carbon Capture, Utilisation and Storage (CCUS) is a technology that captures CO₂ emissions from industrial sources before they enter the atmosphere. The captured carbon is then either utilised in industrial processes or stored permanently underground.
India is launching a National CCUS Mission that provides government incentives covering 50–100% of project costs. The objective is to balance the nation’s coal-dependent economy with its 2070 net-zero commitment, ensuring continued industrial growth while reducing emissions.
Example: A cement factory in Gujarat could capture CO₂ from its kilns, compress and transport it through pipelines, and inject it into depleted oil fields in Rajasthan—preventing those emissions from contributing to climate change.
India faces a unique challenge: nearly 70% of its electricity comes from coal, and demand continues to rise alongside rapid economic expansion. The country emits about 2.5 billion tonnes of CO₂ annually.
Key industrial emitters include:
Example: India’s cement industry must cut 35–45% of emissions through CCUS, since alternative technologies like electrification or solar fuels can only address part of the problem. Without CCUS, heavy industries cannot reach net-zero while meeting urbanisation-driven demand.
Coal gasification converts solid coal into syngas (a mixture of hydrogen and carbon monoxide), which serves as a cleaner fuel. When paired with CCUS, emissions are captured directly during the gasification process.
Example: A coal gasification plant in Odisha can convert coal into syngas for power or chemical production. The captured CO₂ is then compressed and sent via pipeline to underground storage in the Krishna-Godavari Basin—creating what is essentially “clean coal.”
India possesses extensive potential for geological CO₂ storage in various formations:
Example: Depleted oil fields in Gujarat’s Cambay Basin can permanently store CO₂ in the same rock formations that trapped oil for millions of years—essentially returning carbon to where fossil fuels originated.
Capturing CO₂ from coal plant flue gases in India costs between $50–100 per tonne, which is higher than global averages. The total estimated outlay for the national CCUS mission is ₹38,900 crore.
Example: A 500MW coal power plant producing 3 million tonnes of CO₂ annually would need ₹150–300 crore each year for capture alone—excluding transport and storage.
India currently lacks a dedicated CO₂ pipeline network to transport captured emissions from industrial clusters to storage sites.
Example: A steel mill in Jharkhand might need to transport CO₂ over 400 km to a suitable storage site in depleted gas fields. Without pipelines, the CO₂ must be liquefied and moved by trucks or rail—costly and complex.
Unclear responsibility for stored carbon poses legal and financial risks. If CO₂ leaks decades later, determining who is accountable becomes challenging.
Example: If a cement firm injects CO₂ underground in 2030 and it leaks in 2080, who funds the remediation—especially if the company no longer exists?
While CCUS works at pilot scale, large-scale commercial deployment remains limited in India.
Example: Small CCUS pilots currently capture around 10,000 tonnes per year. To offset even 10% of emissions from the cement industry, capture must scale up to over 23 million tonnes annually.
Concerns about underground storage can lead to community resistance, especially in densely populated or agricultural regions.
Example: Farmers in Punjab might oppose underground injection projects near farmland due to fears of groundwater contamination or land subsidence.
The debate over CCUS centres on its role in India’s energy transition.
The optimistic view: CCUS enables India to continue using affordable coal-based energy while cutting emissions, serving as a bridge until renewables fully scale up. It’s vital for hard-to-abate sectors like cement and steel.
The critical view: CCUS may delay renewable energy adoption and sustain fossil fuel dependence. Investing heavily in CCUS could divert resources from proven clean technologies like solar and wind.
Example: India could either invest ₹38,900 crore in CCUS or direct the same funds to add 25–30 GW of renewable capacity. The former enables cleaner coal use; the latter adds new green generation but leaves existing emissions unaddressed.
The success of CCUS depends on four main factors:
Example of integrated success: By 2035, a steel plant in Chhattisgarh captures 80% of its CO₂ using subsidized technology, pipes it 200 km to Deccan Trap storage sites, earns ₹3,000 per tonne in carbon credits, and is continuously monitored by satellites and sensors—making the project economically viable and environmentally sound.
CCUS in India is neither a silver bullet nor a false promise—it’s a calculated gamble. If executed with robust policy, transparent regulation, and sustained funding, it can help India decouple industrial growth from emissions. However, without careful planning, monitoring, and accountability, CCUS risks becoming an expensive distraction from true decarbonisation. The technology works; the challenge lies in deploying it at scale, affordably, and sustainably before 2070.
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