Carbon Capture, Utilisation, and Storage (CCUS) technology is critical, especially in industries such as green hydrogen, petrochemicals, and coal gasification, which are structurally carbon-intensive and cannot be fully decarbonised without CCUS. Charan Shriyan discusses the extent of preparedness of these critical industries in CCUS adoption.
Of the three industries, the petrochemical the most advanced and well-established in India at present, experiencing robust growth with significant investments. The green hydrogen and coal gasification are comparatively at the nascent stage. They are important for India’s move towards clean energy and sustainability, but the industries need policy support, investment and infrastructure for a rapid roll-out.
The petrochemical industry is expanding at a rapid scale and is expected to reach 35 million tonnes per annum (mtpa) by FY2029-30. Currently contributing approximately 10 per cent of industrial CO₂ emissions, primarily from processes like cracking and reforming, the growth in the market would also mean high CO2 emissions. While some companies in India have embraced CCUS, like in Jamnagar and Hazira, widespread adoption remains limited due to high capital and operational expenditures, limited infrastructure for transportation and storage and supportive policies.
Coal gasification is a sunrise sector, involving the conversion of coal into syngas for the production of hydrogen, chemicals, and electricity. The integration of CCUS with coal gasification hubs to reduce natural gas imports and curb emissions is still being explored. Besides, in the case of green hydrogen, the National Green Hydrogen Mission has planned Green Hydrogen Hubs to integrate production with CCUS, driving decarbonization in steel, mobility, and shipping.
Existing policies and the way forward
In line with its commitment to achieve Net Zero by 2070, as announced at the 26th Conference of the Parties (COP-26) in Glasgow in 2021, India has outlined a CCUS target of 750 mtpa by 2050. This is estimated to create employment opportunities of 8-10 million full-time equivalent (FTE) years in a phased manner.
When it comes specifically to CCUS adoption in the petrochemical, green hydrogen, and coal gasification industries, India does have immense potential, but policy will have a major role to play in determining its pace, scale, and success.
India needs a framework that not only supports but also creates a sustainable market for CCUS projects. Direct capital grants, tax incentives, carbon pricing mechanisms, operational subsidies, regulatory mandates, and preferential public procurement of low-carbon products are some pressing measures needed to make CCUS a reality in India. Government support is also essential to manage the costs and risks associated with CCUS projects. The plan should also prioritise locating CO₂-utilising industries close to CO₂-generating industries to enable a cost-effective cycle of generation, capture, transport, and utilisation.
The recent report of the Government’s initiative to formulate a Rs.38,900-crore CCUS program marks a significant step towards accelerating carbon capture and utilisation efforts in India. Hence, all eyes are on it to provide the much-needed clarity in the policy.
Turning carbon capture into value
For the larger goal, carbon capture alone should not be the focus. The plan must also prioritise utilising the captured carbon and converting it into value in a cost-effective manner.
CO₂ can be converted into methanol using homogeneous or heterogeneous catalysts. While pilot-scale projects have demonstrated success, the initial capital investments remain high. Furthermore, converting CO₂ to ethanol is technically possible, but this approach is yet to be proven at scale. Compressing CO₂ to high pressures (up to 250 bar) or liquefying it at cryogenic temperatures for transport remains expensive, making local generation from fossil fuels currently cheaper than long-distance transportation.
While CO₂ capture from major emitters such as power plants is now well established, the utilisation of the recovered CO₂ continues to pose a challenge. Large-scale sources, such as mega power plants, often lack direct applications for the captured carbon. These are some of the hurdles that must be addressed to make CCUS a commercially viable and scalable solution.
India’s CCUS scenario is still at a nascent stage. Drawing lessons from global experiences, the government has introduced a few policies and initiatives, but it has yet to address several key issues. The focus is on the Rs.38,900-crore CCUS program for clarity and momentum to advance the sector.
About the author: Charan Shriyan is Vice President – Projects, Safety & Quality Management at Green Power International