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