Carbon Capture and Utilisation Technologies

Source: The post “Carbon Capture and Utilisation Technologies” has been created, based on “What are carbon capture and utilisation technologies? | Explained” published in “The Hindu” on  26th February 2026.

UPSC Syllabus: GS Paper-3-Economy

Context: Carbon Capture and Utilisation (CCU) technologies are emerging as an important tool to reduce emissions from hard-to-abate sectors while creating new low-carbon industrial value chains.

About Carbon Capture and Utilisation (CCU) Technologies

1. Carbon Capture and Utilisation (CCU) refers to a set of technologies that capture carbon dioxide (CO₂) emissions from industrial sources or directly from the atmosphere.
2. The captured CO₂ is converted into useful products such as fuels, chemicals, building materials, and polymers instead of being permanently stored underground.
3. CCU differs from Carbon Capture and Storage (CCS), where the captured carbon dioxide is injected into geological formations for long-term storage.
4. CCU aims to remove carbon from the atmosphere and reintegrate it into economic value chains.

Need of CCU for India

1. India is the world’s third-largest emitter of carbon dioxide, with emissions largely coming from power generation, cement, steel, and chemical industries.
2. Many of these industries are considered “hard-to-abate” sectors because their production processes are inherently carbon-intensive.
3. Renewable energy can reduce future emissions from power generation, but it cannot fully eliminate emissions from industrial processes.
4. CCU provides a pathway to reduce industrial emissions while creating new industrial value chains.
5. CCU aligns with India’s net-zero target of 2070 and its goal of building a circular and low-carbon economy.

Role of Carbon Capture and Utilisation in Reducing Carbon Dioxide Emissions

1. CCU captures CO₂ before it is released into the atmosphere, thereby reducing direct emissions from industrial sources.
2. It converts captured CO₂ into alternative fuels and materials, thereby reducing dependence on virgin fossil resources.
3. By integrating carbon into reusable products, CCU supports the principles of a circular economy.
4. When combined with green hydrogen and renewable energy, CCU can significantly reduce lifecycle emissions.

Status of India

1. The Department of Science and Technology has funded research and prepared a dedicated research and development roadmap for CCU technologies.
2. The Ministry of Petroleum and Natural Gas has presented a draft 2030 roadmap for Carbon Capture, Utilisation and Storage (CCUS), identifying potential projects.
3. Ambuja Cements is collaborating with IIT Bombay on an Indo-Swedish CCU pilot project to convert captured CO₂ into fuels and materials.
4. JK Cement is developing a CCU testbed to use captured CO₂ in lightweight concrete blocks and olefins.
5. Organic Recycling Systems Limited is leading India’s first pilot-scale Bio-CCU platform to convert CO₂ from biogas into bio-alcohols and specialty chemicals.

Other Countries Practices

1. The European Union’s EU Bioeconomy Strategy promotes the conversion of CO₂ into feedstocks for fuels, chemicals, and materials to advance sustainability.
2. The EU’s Circular Economy Action Plan integrates CCU into broader circularity and climate goals.
3. ArcelorMittal and Mitsubishi Heavy Industries, Ltd. are collaborating with climate tech firm D-CRBN to convert captured CO₂ into carbon monoxide for industrial reuse in Belgium.
4. The United States supports CCU through tax credits and financial incentives for CO₂-derived fuels and chemicals.
5. The UAE’s Al Reyadah project integrates CCU with green hydrogen to produce low-carbon industrial outputs.

Risks and Challenges

1. The primary challenge is cost competitiveness, as capturing and converting CO₂ is energy-intensive and expensive.
2. Without policy incentives, CCU-derived products may not compete with cheaper fossil-based alternatives.
3. India lacks fully developed infrastructure for CO₂ transport, industrial clustering, and downstream integration.
4. There is insufficient clarity regarding standards, certification systems, and long-term market signals for CO₂-based products.
5. Investor uncertainty may slow private sector participation in large-scale deployment.

Way Forward

1. The government should introduce targeted financial incentives, including carbon pricing mechanisms and tax benefits, to improve cost competitiveness.
2. India should develop industrial clusters where CO₂ capture, transport, and utilisation facilities are co-located.
3. Clear regulatory standards and certification frameworks should be established to create market confidence.
4. Public-private partnerships should be strengthened to accelerate pilot projects into commercial-scale operations.
5. Integration of CCU with renewable energy and green hydrogen initiatives should be prioritised to maximise emissions reduction.
6. Continuous implementation of the national CCUS roadmap will be essential for achieving India’s net-zero target by 2070.

Conclusion: Carbon Capture and Utilisation technologies offer India a strategic pathway to decarbonise hard-to-abate sectors while creating new industrial opportunities. Although challenges related to cost, infrastructure, and policy clarity remain, targeted implementation of roadmaps, financial incentives, and global best practices can enable India to scale up CCU and move toward a circular, low-carbon economy.

Question: What are Carbon Capture and Utilisation (CCU) technologies? How can they reduce carbon dioxide emissions? Discuss global initiatives such as the EU Bioeconomy Strategy and Circular Economy Action Plan, India’s current status, challenges, and the way forward for scaling up CCU in India.

Source: The Hindu