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Recent Developments:

• Union Budget 2026–27: The Government of India proposed an outlay of ₹20,000 crore over five years to promote Carbon Capture, Utilisation and Storage (CCUS) across five sectors: power, steel, cement, refineries and chemicals.
• CCUS research roadmap: The Department of Science and Technology (DST) launched its CCUS Research and Development Roadmap in December 2025, outlining priorities for indigenous technology development, research funding, industrial demonstration and commercial deployment.
• Integrated pilot facility: India’s first integrated CCUS field laboratory was inaugurated at IIT Bombay in May 2026. Its pilot facility can capture up to 3 tonnes of carbon dioxide per day and convert it into carbonate and bicarbonate products, while scientific drilling in Deccan Traps basalt formations supports research into geological storage.
• Strategic significance: CCUS can help India reduce emissions from industrial processes that are difficult to decarbonise through renewable energy and electrification alone, supporting its commitment to achieve Net Zero emissions by 2070.

Understanding Carbon Capture, Utilisation and Storage:

What is CCUS?

• Carbon Capture, Utilisation and Storage (CCUS) refers to a group of technologies that capture carbon dioxide (CO₂) from industrial processes, energy production or other sources, subsequently using it in industrial applications or storing it in suitable geological formations to prevent its release into the atmosphere.
• CCUS supports industrial decarbonisation, emissions management and resource efficiency, particularly in sectors where process-related emissions cannot be eliminated entirely through conventional energy-efficiency measures or renewable electricity.
• The technology does not automatically make an industrial process carbon-neutral. Its climate benefits depend on capture efficiency, energy requirements, transportation, storage permanence and emissions across the entire lifecycle.

How Does CCUS Work?

• Carbon capture: CO₂ is separated from industrial exhaust gases or other sources using suitable chemical, physical or membrane-based processes, followed by purification and compression where required.
• Transportation: Captured CO₂ is transported to utilisation facilities or storage sites through pipelines, ships, road tankers or other appropriate infrastructure.
• Carbon utilisation: Captured CO₂ is used as a feedstock or converted into products such as chemicals, fuels, building materials and industrial compounds.
• Geological storage: CO₂ is injected into suitable deep geological formations and monitored to ensure long-term containment.

Geological Storage Options:

• Depleted oil and gas reservoirs offer potentially suitable storage sites because their geological characteristics and subsurface properties may already be relatively well understood.
• Deep saline aquifers can accommodate CO₂ in porous rock formations beneath impermeable caprock, which helps prevent upward migration.
• Basalt formations can enable CO₂ mineralisation through reactions with suitable minerals, converting it into stable carbonate compounds over time.
• Safe geological storage requires detailed site characterisation, well-integrity assessment, groundwater protection, leakage monitoring and long-term liability arrangements.

Major Applications of CCUS:

Decarbonising Hard-to-Abate Industries:

• Steel, cement, refineries, chemicals and fertilisers generate emissions from fuel combustion and industrial processes. CCUS can capture a portion of these emissions where electrification, renewable energy and material-efficiency improvements are insufficient.
• In cement manufacturing, CO₂ is released not only through fuel combustion but also through the chemical conversion of limestone into clinker, making process-related emissions particularly difficult to eliminate.
• In steel and chemical production, CCUS can complement energy efficiency, electrification, renewable hydrogen and other low-carbon production methods.

Hydrogen Production and Industrial Products:

• Blue hydrogen is produced from fossil fuels, such as natural gas or coal, with carbon capture applied to some of the resulting emissions. Its actual emissions intensity depends on capture rates, upstream methane leakage and energy requirements.
• Green hydrogen is produced through water electrolysis powered by renewable electricity. Unlike blue hydrogen, its production does not inherently require fossil-fuel-based hydrogen generation or associated carbon capture.
• Captured CO₂ can be used to manufacture methanol, synthetic fuels, polymers, chemicals and building materials, supporting industrial resource efficiency and a circular carbon economy.
• Enhanced oil recovery (EOR) involves injecting CO₂ into oil reservoirs to increase oil extraction. Its net climate benefit depends on the quantity of CO₂ retained underground and the lifecycle emissions associated with additional oil production and consumption.

Carbon Mineralisation and Biological Utilisation:

• Carbon mineralisation converts CO₂ into stable carbonate compounds through reactions with suitable minerals. The resulting materials may be used in construction products, although their climate benefits depend on the process and energy inputs.
• Biological utilisation uses CO₂ in processes such as algae cultivation to produce biomass, biofuels and other useful materials. The quantity of carbon retained depends on the product’s subsequent use and lifecycle.
• CO₂ utilisation is not necessarily equivalent to permanent carbon removal because many products release the captured carbon again during use or decomposition.

Major CCUS Demonstration Projects in India:

Industrial Testbeds and Pilot Facilities:

• IIT Bombay integrated CCUS field laboratory: Inaugurated in May 2026, the facility integrates carbon capture, utilisation and geological storage research. Its pilot plant can capture up to 3 tonnes of CO₂ per day and convert captured carbon into carbonate and bicarbonate products.
• Cement-sector testbeds: The DST established a cluster of five CCU testbeds in May 2025, using a public–private partnership model involving cement companies and research institutions to demonstrate capture, mineralisation and the production of concrete-based materials.
• Coal-gasification projects: DST-supported industry–research collaborations involving IIT Delhi and Thermax Limited, and CSIR-IICT Hyderabad and BHEL, are exploring CO₂ utilisation for products including methanol and dimethyl ether (DME).
• International research collaboration: India participates in multilateral research platforms, including Accelerating CCUS Technologies (ACT) and the Clean Energy Transition Partnership (CETP), to advance technological development and commercial readiness.

Expansion of the Project Pipeline:

• As reported by the Government of India in April 2026, the national carbon-capture-and-utilisation project pipeline included 3 operational projects, 6 under execution and 16 proposed projects.
• The operational projects were located in Madhya Pradesh, Tamil Nadu and Maharashtra. Projects under execution included three in Andhra Pradesh, two in Telangana and one in Maharashtra.
• Proposed projects included four each in Assam and Odisha, two each in Gujarat and Rajasthan, and one each in Andhra Pradesh, Madhya Pradesh, Haryana and Tamil Nadu.
• These figures indicate a developing project pipeline, but proposed projects should not be treated as operational capacity or as evidence of emissions reductions already achieved.

Government Initiatives to Promote CCUS:

Policy, Funding and Research:

• Union Budget 2026–27: The proposed ₹20,000-crore allocation over five years aims to advance CCUS technologies towards greater commercial readiness and deployment across power, steel, cement, refineries and chemicals.
• DST CCUS Research and Development Roadmap, 2025: The roadmap identifies research priorities, funding pathways, indigenous technology development and requirements for commercial deployment. It also emphasises skilled human resources, regulatory and safety standards, and shared infrastructure.
• NITI Aayog CCUS Policy Framework, 2022: The framework outlines sector-specific approaches for deep decarbonisation and highlights the importance of coordinated policy, common infrastructure and mechanisms that can improve the economic feasibility of CCUS.
• National CCUS research centres: DST-supported centres at IIT Bombay and the Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru, support research, pilot demonstrations, technology development and industry collaboration.
• Mission Innovation collaboration: International research partnerships involving DST and the Department of Biotechnology (DBT) support the development of technologies for CO₂ capture, separation, utilisation and secure storage.

Regional CCUS Hubs and Clusters:

• CCUS hubs connect multiple industrial emitters with shared transportation networks, utilisation facilities and geological storage sites, potentially reducing infrastructure costs and improving economies of scale.
• The Gujarat coast offers opportunities associated with refineries and chemical industries, the Odisha–Jharkhand belt has major steel and cement industries, and northeastern India has oil and gas-related industrial activity.
• Regional planning must consider emission sources, geological suitability, transport distances, water and energy requirements, environmental safeguards and the availability of long-term storage sites.

Challenges in Scaling Up CCUS:

Economic and Technological Constraints:

• High capital and operating costs can make CCUS less competitive than alternative decarbonisation measures, particularly where carbon pricing, financial incentives or markets for low-carbon products are limited.
• Capture, purification, compression and transportation require additional energy, potentially reducing the net emissions benefit if the energy supply is carbon-intensive.
• Many technologies remain at the pilot or demonstration stage, and performance established under laboratory conditions may not translate directly into reliable, cost-effective industrial operation.

Storage, Regulation and Accountability:

• Geological storage requires robust monitoring, reporting and verification to establish that CO₂ remains contained over long periods.
• Leakage risks, groundwater contamination, land-use conflicts and uncertainty over long-term liability can create environmental and regulatory challenges.
• Clear rules are needed for project approval, safety standards, emissions accounting, storage-site closure, liability allocation and independent verification.

Risk of Overdependence on Carbon Capture:

• CCUS should not become a substitute for readily available emissions-reduction measures, including renewable energy, energy efficiency, electrification, material efficiency and cleaner industrial processes.
• Utilisation pathways may provide only temporary carbon retention, while enhanced oil recovery can create additional emissions through increased fossil-fuel production.
• Public funding should therefore prioritise applications with demonstrable net climate benefits and compare CCUS with alternative technologies on a lifecycle basis.

Way Forward:

• Prioritise high-impact sectors: Direct support towards industrial processes with substantial unavoidable emissions, while requiring efficiency improvements and other feasible emissions-reduction measures.
• Strengthen indigenous research: Improve capture materials, separation technologies, low-energy processes, carbon mineralisation and geological monitoring through partnerships among research institutions and industry.
• Develop shared infrastructure: Establish regional hubs with common CO₂ pipelines, suitable storage sites, monitoring systems and transparent access arrangements to reduce project costs.
• Create a robust regulatory framework: Establish clear standards for storage-site selection, safety, measurement, reporting, verification, leakage management and long-term liability.
• Link funding to measurable outcomes: Evaluate projects using verified capture volumes, permanent storage, lifecycle emissions reductions, cost per tonne of CO₂ avoided and commercial viability.
• Adopt a balanced decarbonisation strategy: Integrate CCUS with renewable energy, green hydrogen, electrification, energy efficiency and circular-economy practices rather than relying on any single technology.

Conclusion:

Carbon Capture, Utilisation and Storage can contribute to India’s industrial decarbonisation and Net Zero target by 2070, particularly in sectors where process emissions are difficult to eliminate. However, its effectiveness depends on technological maturity, economic viability, secure storage, transparent emissions accounting and enforceable environmental safeguards. Combining targeted public investment with indigenous research, shared infrastructure and alternative low-carbon technologies can help India scale CCUS while ensuring genuine and measurable climate benefits.

Value Addition for UPSC:

Prelims Pointers:

• CCUS: Carbon Capture, Utilisation and Storage.
• Union Budget 2026–27: Proposed ₹20,000 crore over five years across five sectors.
• DST CCUS Roadmap: Launched in December 2025.
• IIT Bombay: Integrated CCUS field laboratory inaugurated in May 2026, with a pilot capture capacity of up to 3 tonnes of CO₂ per day.
• India’s long-term climate target: Net Zero emissions by 2070.

Mains Linkages:

• GS Paper II: Government policy, institutional coordination, public–private partnerships and international cooperation.
• GS Paper III: Climate-change mitigation, clean-energy technology, industrial development, research and innovation.
• Essay: Balancing economic growth with environmental sustainability and technological innovation.

Mains Practice Question:

“Carbon Capture, Utilisation and Storage can support India’s industrial decarbonisation, but its contribution to climate mitigation depends on lifecycle emissions and long-term storage integrity.” Examine the opportunities, challenges and policy measures required to scale CCUS in India.