Carbon Capture in India: 7 Shocking Truths About This Costly Gamble That Could Make or Break the Future

As India targets net-zero emissions by 2070, Carbon Capture, Usage, and Storage (CCUS) has become central to its climate strategy, particularly for hard-to-abate sectors like steel and power. While promising, CCUS faces high costs, limited geological storage capacity, and technological immaturity, especially in areas like Direct Air Capture. Though policy incentives and pilot projects are underway, success depends on robust infrastructure, risk mitigation mechanisms, and global partnerships.

Lessons from global case studies underscore the need for economic realism alongside innovation. CCUS isn’t a standalone solution—it must be integrated with investments in renewables and systemic reforms. Without this balance, CCUS risks becoming a costly detour rather than a climate breakthrough. India’s future climate and economic resilience depend on transparent, inclusive decision-making around this high-stakes gamble.

Carbon Capture in India: 7 Shocking Truths About This Costly Gamble That Could Make or Break the Future

As India strides toward its 2070 net-zero target, Carbon Capture, Usage, and Storage (CCUS) has emerged as a cornerstone of its climate strategy. Touted as a lifeline for heavy industries like steel, cement, and power generation, CCUS promises to reconcile economic growth with emission reductions. But can this technology truly revolutionize India’s climate fight, or is it an overhyped diversion from systemic change? 

Decoding CCUS: Beyond the Acronym 

CCUS involves three interconnected phases:  

• Capture: Extracting CO₂ from industrial emissions using methods like chemical solvents (for low-concentration gases) or physical adsorption (for moderate levels). Gasification plants, common in India’s coal sector, integrate capture more cost-effectively.  

• Usage: Transforming captured CO₂ into products like green urea, building materials, or synthetic fuels. While innovative, this phase faces scalability hurdles; for instance, converting CO₂ to fuel requires substantial energy input, often from renewables.  

• Storage: Injecting CO₂ into geological formations (e.g., depleted oil fields). India’s limited mapped storage sites and underdeveloped regulatory framework pose significant challenges here. 

Global Lessons: Hope vs. Reality 

Globally, CCUS has seen mixed results. The UK’s canceled projects due to soaring costs underscore financial risks, while Norway’s Sleipner project, operational since 1996, demonstrates technical viability by storing 1 million tons of CO₂ annually underwater. For India, these examples highlight a critical lesson: success hinges on balancing innovation with economic pragmatism.

India’s CCUS Push: Ambition Meets Complexity 

India’s industrial growth trajectory complicates decarbonization. The NITI Aayog’s 2022 report identifies CCUS as vital for sectors where alternatives like electrification are impractical. Key initiatives include:  

• Policy Incentives: Tax breaks, Production-Linked Incentives (PLI), and public-private partnerships to attract investment.  

• Pilot Projects: Exploring coal gasification with CCUS in states like Odisha and Gujarat.  

• R&D Focus: Prioritizing cost reduction in capture technologies and storage site mapping. 

Yet, challenges loom large:  

• Cost Prohibitive: Capturing CO₂ from coal plants costs $50–$100 per ton, raising energy prices by 30–50%.  

• Storage Shortfalls: Only 5–10% of India’s theoretical CO₂ storage capacity is geologically validated.  

• Tech Immaturity: Direct Air Capture (DAC) remains experimental, with global capacity capturing just 0.1% of annual emissions. 

Policy Crossroads: Building a Viable Ecosystem 

While NITI Aayog’s roadmap is a start, India’s policy architecture needs:  

• Risk Mitigation: Guarantees for early investors and insurance models to address project failures.  

• Infrastructure Development: CO₂ transport networks and storage hubs, possibly leveraging existing oilfields.  

• Global Collaboration: Partnerships for knowledge transfer, as seen in the US-India Strategic Clean Energy Partnership. 

The Verdict: Game-Changer or Complementary Tool? 

CCUS is no silver bullet. Its potential is undeniable—especially in curbing emissions from industries vital to India’s development. However, without parallel investments in renewables, grid modernization, and circular economies, CCUS risks becoming a costly stopgap.  

For India, the path forward lies in integrating CCUS into a broader mosaic of solutions. By coupling innovation with equitable policies and global cooperation, CCUS could indeed be transformative—but only if it accelerates, rather than delays, the transition from fossil fuels.  

CCUS symbolizes a pragmatic compromise for growth-driven economies. Yet, its success demands transparency in addressing trade-offs: Can India afford to bet on unproven tech while communities grapple with climate impacts today? The answer will shape not just its climate legacy, but its economic resilience in a decarbonizing world.