India's Rs 20,000 Crore CCUS Push: A Game-Changer for Industrial Decarbonization
India's Rs 20,000 Crore CCUS Budget for Emission Cuts

India's Major Investment in CCUS Technologies to Combat Industrial Emissions

The Indian government has made a substantial commitment to tackling greenhouse gas emissions from critical industrial sectors by announcing a significant financial allocation for Carbon Capture, Utilisation, and Storage (CCUS) technologies. On Sunday, the government revealed it had earmarked Rs 20,000 crore over a five-year period specifically for the development and deployment of CCUS solutions. This represents the strongest push yet from the government to address emissions from carbon-intensive industries that are essential to the economy but challenging to decarbonize through conventional means.

Understanding CCUS: A Multi-Faceted Approach to Carbon Management

CCUS encompasses a diverse range of technologies and methodologies designed to intercept carbon dioxide emissions at their source during industrial processes. These innovative approaches focus on two primary pathways:

  • Carbon Storage: Safely sequestering captured carbon dioxide in geological formations for long-term containment
  • Carbon Utilisation: Transforming captured carbon dioxide into valuable compounds that can be used in other industrial applications

The fundamental objective of these technologies is to prevent carbon dioxide from entering the atmosphere, thereby mitigating its contribution to global warming. This is particularly crucial for industries such as steel and cement production, where carbon dioxide emissions are not merely byproducts of energy consumption but are inherent to the core manufacturing processes themselves.

The Critical Role of CCUS in India's Net-Zero Ambitions

India's ambitious goal of achieving net-zero emissions by 2070 faces significant challenges without substantial advancements in CCUS technologies. While renewable energy adoption addresses emissions from power generation, sectors like steel and cement require specialized solutions because their emissions are process-related rather than energy-related. Even if these industries transition completely to renewable energy sources, they would still generate substantial carbon dioxide emissions due to their fundamental production methods.

Professor Vivek Polshettiwar of the Tata Institute of Fundamental Research, who actively works on CCUS technologies, explained the current technological landscape: "There is a lot of active research happening in India in this area, and several potential technologies have been developed. But most of these are at TRL 3 or TRL 4 levels. Patents have been filed in many cases, but the translation into a full-fledged deployable product has not happened."

Bridging the Gap Between Research and Commercial Deployment

The newly announced budget allocation specifically targets the transition from laboratory-proven concepts to commercially viable solutions. The Rs 20,000 crore fund is designated for advancing technologies beyond Technology Readiness Level (TRL) 4, where they have been demonstrated in controlled laboratory conditions, toward higher readiness levels that enable practical industrial application. The funding will focus on five key industrial sectors:

  1. Power generation
  2. Steel production
  3. Cement manufacturing
  4. Petroleum refineries
  5. Chemical industries

Professor Polshettiwar emphasized the significance of this investment: "Rs 20,000 crore is a significant amount of money. It addresses the problem of risk averseness in the industry. The main obstacle to trying out lab-ready technologies has been the lack of funding. Because of this, a meaningful interaction between the academia and industry over commercialisation of these technologies has not happened. I think this is a very bold and welcome move from the government, and hopefully, within the next few years, we will have some solutions getting deployed."

Global Context and India's Strategic Positioning

While CCUS technologies have been available globally for several years, their impact has remained limited due to challenges in scaling and cost considerations. The Indian government's substantial investment represents a strategic move to overcome these barriers and position the country as a leader in developing practical CCUS solutions for hard-to-abate industrial sectors. This initiative not only supports India's climate commitments but also addresses the specific needs of industries that are vital to economic development and infrastructure growth.

The five-year funding window provides a structured timeline for technology development, testing, and eventual deployment, creating a clear pathway for researchers, academic institutions, and industrial partners to collaborate on bringing laboratory innovations to market-ready solutions that can make a tangible difference in India's emissions profile.