Why in news?

Carbon Capture and Utilisation (CCU) involves technologies that capture carbon dioxide from industrial emissions or directly from the air and convert it into useful products such as fuels, chemicals, construction materials, or polymers.

Unlike carbon capture and storage (CCS), which stores CO₂ underground permanently, CCU reuses the captured carbon within the economy, turning emissions into productive inputs instead of waste.

What’s in Today’s Article?

• Why India Needs Carbon Capture and Utilisation (CCU)
• India’s Progress on CCU
• Global Efforts to Advance CCU
• Risks and Challenges in Scaling CCU in India
• Way Forward

Why India Needs Carbon Capture and Utilisation (CCU)?

• India is the world’s third-largest CO₂ emitter, with major emissions coming from power generation, cement, steel, and chemical industries.
• While renewable energy can curb future emissions, several industrial sectors remain hard to decarbonise due to their carbon-intensive processes.
• CCU provides a solution by reducing emissions from these “hard-to-abate” sectors while creating new industrial value chains.
• It also supports India’s net-zero target for 2070 and promotes a circular, low-carbon economy.

India’s Progress on CCU

• Policy and Research Support - India has begun advancing CCU through research funding by the Department of Science and Technology, which has developed a dedicated R&D roadmap.
• The Ministry of Petroleum and Natural Gas has also released a draft 2030 CCUS roadmap identifying potential projects.
• Industry-Led Pilot Projects
  • Ambuja Cements (Adani Group), in collaboration with IIT Bombay and Swedish partners, is piloting technology to convert captured CO₂ into fuels and materials.
  • JK Cement is developing a CCU testbed to use captured CO₂ in products like lightweight concrete blocks and olefins.
  • Organic Recycling Systems Limited (ORSL) is leading India’s first pilot-scale Bio-CCU platform, converting CO₂ from biogas streams into bioalcohols and specialty chemicals.

Global Efforts to Advance CCU

• European Union: Linking CCU to Circular Economy - The EU’s Bioeconomy Strategy and Circular Economy Action Plan promote CCU as a tool to convert CO₂ into fuels, chemicals, and materials, supporting sustainability and circularity goals.
• United States: Incentives and Funding Support - The US encourages CCU through tax credits and public funding, particularly for projects producing CO₂-derived fuels and chemicals, helping scale industrial applications.
• United Arab Emirates: Integrating CCU with Green Hydrogen - The UAE’s Al Reyadah project and proposed CO₂-to-chemicals hubs combine CCU with green hydrogen, aiming to decarbonise heavy industry while creating new value chains.
• China - China is rapidly scaling CCUS projects, particularly in coal-based power and chemical industries. It is investing in pilot projects that convert captured CO₂ into fuels and building materials.

Risks and Challenges in Scaling CCU in India

• Cost Competitiveness - Capturing, purifying, and converting CO₂ is energy-intensive and expensive. Without policy incentives or carbon pricing, CCU-derived products may struggle to compete with cheaper fossil-based alternatives.
• Infrastructure Gaps - Effective CCU deployment requires co-located industrial clusters, CO₂ transport systems, and integration with downstream industries. Such infrastructure remains unevenly developed across India.
• Regulatory and Market Uncertainty - The lack of clear standards, certification systems, and stable market signals creates uncertainty for investors and limits demand for CO₂-based products.

Way Forward

• Although India has developed policy roadmaps for CCU, successful implementation, supportive regulations, and financial incentives will be crucial to achieving long-term climate and industrial goals.