For consultant functions.
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The story thus far:
Carbon Capture and Utilisation (CCU) refers to a set of technologies that capture carbon dioxide emissions from industrial sources or immediately from the air and convert them into helpful merchandise. This course of removes carbon from the environment and places it into the financial system as inputs for fuels, chemical compounds, constructing supplies, or polymers. Unlike carbon capture and storage, the place captured CO₂ is completely saved underground moderately than reused, CCU makes use of up the captured carbon.
Why does India want CCU?
India has constantly been the world’s third-largest emitter of CO₂, with emissions pushed largely by energy era, cement, metal, and chemical compounds. While renewable vitality might cut back future emissions, many industrial processes are inherently carbon-intensive and tough to decarbonise. CCU gives a pathway to cut back emissions from these “hard-to-abate” sectors whereas concurrently creating new industrial worth chains. It additionally aligns with India’s net-zero goal for 2070 and its push to construct a round, low-carbon financial system.
Also Read | Union Budget 2026: ₹20,000 crore earmarked for carbon capture, storage scheme
Where does India stand at the moment?
India has begun supporting CCU by way of analysis funding from the Department of Science and Technology which has created a particular analysis and growth roadmap for these applied sciences. The draft 2030 roadmap for Carbon Utilisation and Storage (CCUS) introduced by the Ministry of Petroleum and Natural fuel has recognized initiatives that can be utilized for CCUS functions. In the personal sector, Ambuja Cements (Adani Group) is engaged on an Indo-Swedish CCU pilot with IIT Bombay to transform captured CO₂ into fuels and supplies. JK Cement is collaborating on a CCU testbed to capture CO₂ for functions akin to light-weight concrete blocks and olefins. Beyond cement, Organic Recycling Systems Limited (ORSL) is main India’s first pilot-scale Bio-CCU platform, valorising CO₂ from biogas streams into bio-alcohols and specialty chemical compounds.
What are different nations doing?
The EU Bioeconomy Strategy and Circular Economy Action Plan explicitly helps CCU as a method to flip CO₂ into feedstocks for chemical compounds, fuels, and supplies, linking it to circularity and sustainability targets. ArcelorMittal and Mitsubishi Heavy Industries, Ltd. are working with a local weather tech firm, D-CRBN, to trial a brand new expertise to transform CO2 captured at ArcelorMittal’s plant in Gent, Belgium into carbon monoxide which can be utilized in metal and chemical manufacturing. The U.S. makes use of a mixture of tax credit and funding to scale CCUs, significantly for CO₂-derived fuels and chemical compounds. The UAE’s Al Reyadah undertaking and deliberate CO₂-to-chemicals hubs leverage CCU with inexperienced hydrogen.
What are the dangers forward?
The foremost danger in scaling CCU in India is value competitiveness. Capturing, purifying, and changing CO₂ is energy-intensive and costly. Without coverage incentives, CCU-derived merchandise will battle to compete with cheaper, fossil-based alternate options. A second danger lies in infrastructure readiness. CCU requires co-located industrial clusters, dependable transport of CO₂, and integration with downstream manufacturing, all of which are erratically developed throughout Indian industrial areas. Finally, the absence of clear requirements, certification, and market indicators creates uncertainty for buyers and limits demand for CO₂-derived merchandise.
India has taken optimistic steps by way of the event of roadmaps to reaching CCU, and their acceptable implementation can be essential for reaching India’s objectives.
Shambhavi Naik is chairperson, Takshashila Institution’s Health & Life Sciences Policy,
Published – February 26, 2026 08:30 am IST