Carbon Capture and Utilisation (CCU): Objectives, Process, Global Importance & India’s Status

Why in News ?

• September 2025: India announced major financial incentives for Carbon Capture projects.
• March 2025: The Centre approved the establishment of five CCU testbeds (TOI, 2025).
• April 2025: Global and Indian steel companies launched a joint study to create an Asia-based CCUS hub (ET, 2025).

Context

• The global fight against climate change now requires not only reducing emissions but also removing and reusing the carbon dioxide (CO₂) already released into the atmosphere.
• The technology that captures CO₂ and converts it into useful products is known as Carbon Capture and Utilisation (CCU).
• CCU is a part of the broader Carbon Capture, Utilisation and Storage (CCUS) framework, focusing on utilisation instead of storage.

Objectives of CCU

1. To reduce CO₂ emissions from industrial and energy production sectors.
2. To transform CO₂ from a waste into a resource.
3. To support global Net Zero Emission goals (by 2050–2070).

Process of CCU

Applications of Captured CO₂

Global Importance of CCU

• According to the International Energy Agency (IEA), around 9% of global emission reductions required for Net Zero by 2050 could come from CCUS technologies.
• The EU, USA, China, and Japan have already launched large-scale CCU and CCS projects.
• As of 2024, over 200 CCUS projects are under development worldwide (IEA, 2024).

Status of CCU in India

1. Policy and Institutional Initiatives

• The Government of India is preparing a National CCUS Policy (expected by 2025).
• NITI Aayog’s 2022 report estimated India’s CO₂ storage capacity at around 291 gigatons (Gt).
• The Ministry of Power and Ministry of Steel jointly approved five CCU testbeds (TOI, 2025).

2. Industrial Initiatives

• Major companies like Tata Steel, JSW, NTPC, and Indian Oil Corporation are operating pilot CCU projects.
• Carbon Clean (UK-based) opened a Global Innovation Centre in Navi Mumbai to make India a CCU technology hub.

3. Government Investment

• The Centre has proposed a ₹38,900 crore CCUS programme (Economic Times, 2025).
• Plans to offer 50–100% subsidies or tax incentives for coal-based industries adopting CCU technologies (Reuters, Sept 2025).

Significance of CCU for India

1. A key tool to achieve India’s Net Zero by 2070 target.
2. Enables “clean transition” for India’s coal-based energy infrastructure.
3. Reduces emissions from hard-to-abate industries like steel, cement, and chemicals.
4. Creates new green value chains and employment opportunities.
5. Promotes green growth and sustainable industrial development.

Challenges

Conclusion

• Carbon Capture and Utilisation (CCU) represents a bridge technology between fossil-based and net-zero economies.
• For India, it holds immense potential to decarbonize heavy industries while promoting innovation and green industrialization. 
• However, achieving scale will require policy clarity, cost-effective technology, public-private collaboration, and robust carbon markets to make CCU both environmentally and economically viable.