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Recent discussions on India’s climate strategy have highlighted the growing importance of Carbon Capture and Utilisation (CCU) technologies, particularly for hard-to-abate sectors such as cement, steel, refineries, and chemicals. With India committing to net-zero emissions by 2070, CCU is emerging as a necessary complement to renewable energy expansion.

What is Carbon Capture and Utilisation (CCU)?

Carbon Capture and Utilisation (CCU) refers to a set of technologies that:

• Capture carbon dioxide (CO?) from industrial sources or directly from the atmosphere.
• Convert the captured CO? into useful products such as fuels, chemicals, building materials, or polymers.

Unlike Carbon Capture and Storage (CCS), where CO? is permanently stored underground, CCU reintegrates carbon into the economy, contributing to a circular carbon economy.

Why CCU is Necessary for India

1. High Emissions Profile

India is the world’s third-largest CO? emitter, with emissions primarily arising from:

• Power generation
• Cement production
• Steel manufacturing
• Chemicals and refineries

2. Hard-to-Abate Sectors

In industries like cement and steel:

• A significant portion of emissions comes from industrial processes themselves, not just fuel combustion.
• Renewable energy alone cannot fully eliminate these emissions.

3. Alignment with Net-Zero 2070

CCU supports:

• Deep industrial decarbonisation
• Circular economy goals
• Low-carbon industrial competitiveness

Thus, CCU acts as a bridge technology during the transition to a fully decarbonised economy.

Global Developments

• European Union: The EU Bioeconomy Strategy and Circular Economy Action Plan promote CCU for converting CO? into feedstocks for fuels and chemicals.
• Belgium: ArcelorMittal and Mitsubishi Heavy Industries are piloting technology to convert captured CO? into carbon monoxide for steel and chemical production.
• United States: Combines tax credits and public funding to scale CO?-derived fuels and chemicals.
• UAE: The Al Reyadah project integrates CCU with green hydrogen for CO?-to-chemicals hubs.

These initiatives indicate that CCU is becoming part of mainstream climate-industrial policy globally.

India’s Progress and Policy Push

1. Research and Roadmaps

• The Department of Science and Technology (DST) has prepared a dedicated R&D roadmap for CCU.
• The Ministry of Petroleum and Natural Gas has proposed a draft 2030 CCUS roadmap identifying potential projects.

2. Budgetary Support

• The Union Budget 2026–27 announced a ?20,000 crore scheme to scale up Carbon Capture, Utilisation and Storage (CCUS).
• Focus sectors: Power, Steel, Cement, Refineries, and Chemicals.
• Marks a shift from pilot projects to structured, policy-backed deployment.

3. Private Sector Initiatives

• Ambuja Cements (Adani Group) with IIT Bombay: Indo-Swedish CCU pilot converting CO? into fuels and materials.
• JK Cement: Developing CCU applications for lightweight concrete blocks and olefins.
• Organic Recycling Systems Limited (ORSL): Leading India’s first pilot-scale Bio-CCU platform, converting CO? from biogas into bio-alcohols and specialty chemicals.