Carbon Capture, Usage and Storage
- 14 Feb 2026
In News:
The Prime Minister highlighted the importance of CCUS in decarbonising India’s heavy industries by sharing an article titled “Carbon capture can power India’s next steel revolution” authored by the Union Minister of Steel. Simultaneously, the Union Budget 2026–27 earmarked ?20,000 crore for a dedicated CCUS scheme, signalling a shift from pilot research to commercial deployment.
What is CCUS?
According to the International Energy Agency, Carbon Capture, Utilization and Storage (CCUS) refers to a set of technologies that capture carbon dioxide (CO?) from:
- Large industrial sources (power plants, steel, cement, refineries), or
- Directly from the atmosphere (Direct Air Capture).
The captured CO? is compressed and transported for either utilization or permanent geological storage.
The Three-Step Process
1. Capture: CO? is separated from other gases using:
- Chemical solvents
- Membranes
- Solid sorbents
2. Transport: Compressed CO? is transported through:
- Pipelines
- Ships
- Road tankers
3. Utilization or Storage
- Utilization (CCU): Conversion into urea, methanol, synthetic fuels, chemicals, building materials, or use in Enhanced Oil Recovery (EOR).
- Storage (CCS): Injection into deep geological formations such as depleted oil and gas fields or saline aquifers for long-term sequestration.
Why is CCUS crucial for India?
1. Decarbonising ‘Hard-to-Abate’ Sectors
Industries like steel and cement emit CO? due to chemical processes (e.g., calcination of limestone), not merely fuel combustion. CCUS is currently the only scalable solution to reduce such intrinsic emissions without shutting down production.
2. Powering India’s Steel Expansion
- India is the world’s second-largest crude steel producer (after China).
- Production: ~152 million tonnes (FY 2024–25).
- Under the National Steel Policy 2017, targets:
- 300 MT capacity by FY 2030–31
- 500 MT by 2047 (Viksit Bharat vision)
- Steel accounts for 10–12% of India’s total greenhouse gas emissions.
While hydrogen-based steelmaking is the long-term solution, CCUS acts as a bridge technology, enabling “Low-Carbon Steel” using existing plants.
3. Enhancing Energy Security
India derives 55–60% of its primary energy from coal. Immediate fossil fuel phase-out is economically disruptive. CCUS allows continued coal usage with reduced emissions during transition.
4. Circular Economy & Industrial Value Addition
Captured CO? can be:
- Converted to methanol (clean fuel)
- Used in Enhanced Oil Recovery (EOR)
- Converted into green urea or building materials
Thus, emissions become economic resources.
5. Safeguarding Exports from Carbon Taxes
Global trade is increasingly climate-regulated under mechanisms like the European Union Carbon Border Adjustment Mechanism (CBAM).
Low-carbon steel:
- Reduces export vulnerability
- Attracts climate-aligned investments
- Prevents “stranded assets” in India’s relatively young steel plants
6. Alignment with Global Commitments
CCUS supports:
- Paris Agreement (limit warming to 1.5–2°C)
- Sustainable Development Goals (Climate Action, Affordable & Clean Energy, Industry & Innovation)
India’s Key Initiatives on CCUS
1. Budgetary Push (2026–27)
- ?20,000 crore over five years
- Target sectors: Power, Steel, Cement, Refineries, Chemicals
2. NITI Aayog Policy Framework
- Proposed Viability Gap Funding (VGF)
- Development of CCUS hubs in industrial clusters (e.g., Gujarat, Odisha)
- Shared pipeline and storage infrastructure
3. Green Steel Taxonomy
Steel with emissions <2.2 tCO?e per tonne of crude steel qualifies as “Green Steel” (3–5 star ratings), incentivising adoption of CCUS and avoiding carbon taxes.
4. R&D and Institutional Support
National Centres of Excellence (NCoE-CCU)
- IIT Bombay
- Jawaharlal Nehru Centre for Advanced Scientific Research
DST Roadmap
- Pilot phase: 2025–30
- Commercial scale-up: 2035–45
Mission Innovation Challenge (2018)
- Joint initiative of DST & DBT
- Collaboration with 24 countries
- Focus on breakthrough capture and utilization technologies
Global River Cities Alliance with 267 river cities including India, USA and Denmark to be launched on December 10, 2023 (PIB)
- 08 Dec 2023
Why is it in the News?
The National Mission for Clean Ganga (NMCG) on behalf of River Cities Alliance (RCA), has signed a Memorandum of Common Purpose (MoCP) with the Mississippi River Cities and Towns Initiative (MRCTI), representing 124 cities/towns situated along the banks of the Mississippi River, USA.
What is River Cities Alliance (RCA)?
- The River Cities Alliance (RCA) is a joint initiative of the Department of Water Resources, River Development & Ganga Rejuvenation under the Ministry of Jal Shakti (MoJS) & the Ministry of Housing and Urban Affairs (MoHUA), with a vision to connect river cities and focus on sustainable river centric development.
- Beginning with 30 member cities in November 2021, the Alliance has expanded to 109 river cities across India and one international member city from Denmark.
- 30 cities include Dehradun, Rishikesh, Haridwar, Srinagar, Varanasi, Kanpur, Prayagraj, Farrukhabad, Mirzapur, Mathura, Bijnor, Ayodhya, Patna, Bhagalpur, Begusarai, Munger, Sahibganj, Rajmahal, Howrah, Jangipur, Hugli-Chinsurah, Berhampore, Maheshtala, Aurangabad, Chennai, Bhubaneshwar, Hyderabad, Pune, Udaipur and Vijayawada.
- The Alliance is open to all river cities of India. Any river city can join the Alliance at any time.
- Objective: To provide the member cities with a platform to discuss and exchange information on aspects that are vital for sustainable management of urban rivers, sharing best practices and supporting innovation.
- It focuses on three broad themes- Networking, Capacity Building and Technical Support.
- The Secretariat of the Alliance is set up at the National Institute for Urban Affairs (NIUA) Delhi.
About the National Mission for Clean Ganga (NMCG):
- The Ministry of Jal Shakti, Government of India, established the National Mission for Clean Ganga (NMCG) as a registered society to take proactive measures for preventing, controlling, and abating environmental pollution in the Ganga River.
- Its mission includes ensuring a continuous and adequate flow of water to rejuvenate the river.
- Initially serving as the implementation arm of the dissolved National Ganga River Basin Authority (NGRBA), NMCG aims to achieve effective pollution abatement and river rejuvenation through a river basin approach, promoting inter-sectoral coordination and environmentally sustainable development.
- Post the dissolution of NGRBA in 2016, NMCG continues its objectives through the National Council for Rejuvenation, Protection, and Management of River Ganga, also known as the National Ganga Council.
- The mission focuses on maintaining minimum ecological flows in the Ganga to ensure water quality and sustainable development.
- Structure: NMCG follows a two-tier management structure comprising the Governing Council and the Executive Committee, both led by the Director General.
- The Executive Committee holds the authority to approve projects up to Rs. 1000 crores.
- At the state level, State Programme Management Groups (SPMGs) serve as the implementing arms of State Ganga Committees.
- The Director General of NMCG holds the position of Additional Secretary in the Government of India.