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Carbon Capture Utilisation and Storage

Feb. 2, 2026

Recently, the Finance Minister proposed an outlay of Rs 20,000 crore over the next five years in Carbon Capture Utilisation and Storage (CCUS) technologies.

About Carbon Capture Utilisation and Storage:

  • It is a suite of technologies that enable the mitigation of carbon dioxide (CO2) emissions from large point sources such as power plants, refineries and other industrial facilities, or the removal of existing CO2 from the atmosphere.
  • Working of Carbon Capture Utilisation and Storage:
    • It consists of three stages: capture, transport and storage (or usage) of CO2.
    • Capturing methods: The main methods for capturing CO2 are: post-combustion; pre-combustion; and oxy-fuel combustion.
    • Post-combustion technology: It separates CO2 from the flue gas, by using a chemical solvent for instance, after the fuel is burnt.
    • Pre-combustion methods: It involves converting the fuel into a gas mixture consisting of hydrogen and CO2 before it is burnt. 
    • Oxy-fuel Combustion: Oxy-fuel technology involves burning a fuel with almost pure oxygen to produce CO2 and steam, with the released CO2 subsequently captured.
  • CCUS can play a strategic role in global decarbonisation efforts in a number of ways.
    • Reducing emissions in ‘hard-to-abate’ industries
    • Producing low-carbon electricity and hydrogen, this can be used to decarbonise various activities
    • Removing existing CO2 from the atmosphere.

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