Model Answer

Carbon Capture and Utilisation (CCU) refers to a set of technologies that capture carbon dioxide (CO₂) emissions from industrial processes or power generation and convert them into useful products such as synthetic fuels, chemicals, plastics, and building materials. Unlike Carbon Capture and Storage (CCS), which permanently stores captured CO₂ underground, CCU integrates emissions into productive economic cycles.

For India—the world’s third-largest CO₂ emitter—CCU assumes importance in achieving its net-zero target by 2070, particularly in “hard-to-abate” sectors such as cement, steel, power, and chemicals. Potential of CCU in India

1. Decarbonisation of Hard-to-Abate Sectors Sectors like cement and steel emit CO₂ not only from energy use but also from process chemistry. CCU offers a pathway to reduce process emissions where renewable substitution alone is insufficient.

Cement sector pilots by companies such as Ambuja Cements and JK Cement are exploring CO₂ mineralisation in concrete.

Industrial innovation by firms like Organic Recycling Systems Limited demonstrates conversion of waste CO₂ into useful outputs.

2. Enabling a Circular Carbon Economy

CCU aligns with the principles of the circular economy by transforming “waste carbon” into economic inputs. CO₂ can be converted into:

Synthetic fuels (e-methanol, e-kerosene)

Carbonates for construction materials

Chemicals such as urea and methanol

This reduces dependence on virgin fossil resources while adding economic value.

3. Energy Security and Industrial Competitiveness

By producing synthetic fuels domestically, CCU can reduce import dependence. Furthermore, as global markets move towards carbon border taxes, industries adopting CCU may gain export competitiveness.

Policy and Institutional Support

India has begun building an enabling framework:

The Department of Science and Technology (DST) is funding CCU research and pilot projects.

The Ministry of Petroleum and Natural Gas (MoPNG) has drafted a CCUS roadmap for 2030 to guide scale-up.

Globally, the European Commission supports CCU through its Bioeconomy Strategy and Circular Economy Action Plan.

The U.S. promotes CCU through tax credits such as 45Q, incentivising private investment.

These examples underline the importance of regulatory and fiscal backing. Key Challenges

1. High Cost and Energy Intensity

Carbon capture technologies remain capital-intensive. Additionally, converting CO₂ into fuels requires significant energy, ideally from renewables. Without cheap clean energy, CCU risks being economically unviable.

2. Infrastructure Deficit

Large-scale deployment requires:

CO₂ transport pipelines

Storage and utilisation hubs

Industrial clusters with co-located emitters and users

India currently lacks dedicated CO₂ transport infrastructure.

3. Policy and Market Uncertainty

Absence of:

Clear carbon pricing mechanisms

Standardised certification for low-carbon products

Long-term purchase agreements

discourages private sector investment.

4. Lifecycle Emissions Concerns

If CO₂-derived fuels are eventually combusted, emissions re-enter the atmosphere. Thus, climate benefits depend on lifecycle analysis and renewable energy integration.

Way Forward

Create Carbon Markets and Pricing Signals – A robust carbon market will make CCU commercially viable.

Develop Industrial Clusters – Co-locating cement, steel, refineries, and chemical industries can reduce transport costs.

Public-Private Partnerships (PPP) – Risk-sharing mechanisms for early-stage projects.

Green Energy Integration – Linking CCU with renewable energy expansion to ensure genuine emission reductions.

Standards and Certification – Develop regulatory frameworks for “low-carbon products” to create consumer trust and export advantages.

Conclusion

Carbon Capture and Utilisation represents a pragmatic transition tool for India’s decarbonisation strategy. While renewable energy expansion remains central, CCU addresses residual and process emissions that are otherwise difficult to eliminate. With targeted policy support, infrastructure development, and market-based incentives, CCU can contribute significantly to India’s net-zero 2070 goal while fostering a circular and competitive low-carbon economy.