CCUS: The Basics
Carbon Capture, Utilization, and Storage (CCUS) technologies are being developed for industries like power and steel, which are significant contributors
to pollution. These sectors have a high dependency on fossil fuels like coal, making emission control challenging. CCUS technologies work by capturing carbon dioxide (CO2) from industrial facilities before it is released into the atmosphere. This captured CO2 can then be stored permanently or utilized to create various products. These include synthetic fuels, fertilizers, construction materials, and industrial gases. The technology aims to mitigate emissions from sources where direct emission control is difficult due to reliance on fossil fuels. The Department of Science and Technology (DST) and the Council of Scientific and Industrial Research (CSIR) are actively involved in validating and deploying CCUS technologies in real industrial settings at a smaller scale.
Government Initiatives
Last year, the government informed Parliament about pilot or demonstration projects already operational in some industries. National Thermal Power Corporation (NTPC) has commissioned a pilot project to convert 10 Metric Tonnes Per Day (MTPD) of CO2 to Methanol in Vindhyachal, Madhya Pradesh, with an annual capacity of 6,000 MT. JSW Steel operates a Direct Reduced Iron unit plant in Salav, Maharashtra, using CO2 to remove it from process gas, with a capacity of up to 500 TPD. Finance Minister Nirmala Sitharaman stated the government's aim to scale up CCUS technologies to increase readiness in various sectors, including power, steel, cement, refineries, and chemicals. The Union Budget 2026 underscored this commitment by allocating ₹20,000 crore over five years to support CCUS technology development and deployment.
Budget's Big Impact
The Union Budget 2026 signifies a fresh push toward decarbonization as part of India's climate action plan, with the government allocating ₹20,000 crore for CCUS technologies over the next five years. This strategic investment is expected to facilitate industrial decarbonization, aligning with India's goal of achieving Net Zero emissions by 2070. Promoting indigenous research and development in this area is expected to reduce dependence on imported technologies. Furthermore, the deployment of CCUS across hard-to-abate sectors is anticipated to attract investment, spur innovation, and potentially generate employment in high-skilled areas. Pradeep Singhvi, Executive Director, Grant Thornton Bharat, said this was a long-awaited decision and demonstrates a clear understanding of industry needs.
