The government is looking at introducing a mission that will not just promote Carbon Capture Utilisation and Storage (CCUS) technologies, but will also work with the industry and academia to create a roadmap for developing an India-specific ecosystem.

It is expected to offer subsidies, incentives like the viability gap funding (VGF) and tax rebates to encourage companies to create India-specific technologies and develop an ecosystem for CCUS. NITI Aayog, Power Ministry and Principal Scientific Adviser to the Government of India are chalking out a plan .

NITI Aayog Member VK Saraswat said, “ Mission CCUS is very important and Government of India is looking into it so that we can replicate what we have done with (green) hydrogen, batteries (EV) and electrolysers. That day is not away when a CCUS mission may also be launched.”

CCUS, a push for decarbonisation

CCUS is a critical push for decarbonisation process as industrial applications are hard to electrify and industrial CO2 emissions are hard to abate due to the use of fossil fuels.

Speaking to reporters on the sidelines of an event organised by the American Chamber of Commerce in India (AMCHAM), Saraswat emphasised the need for India to have a mission mode approach to develop CCUS.

“The Government of India and we (NITI Aayog) are proposing to launch a CCUS approach in which different VGF and carbon pricing mechanism, taxing mechanism, carbon trading and also subsidies in terms of Production Linked Incentive (PLI) can be provided by reducing the carbon footprint in every business. So both technology development, setting up pilot plants, and making the incentives are available for the emitters,” he added.

Saraswat said that one of the key elements of the mission mode approach (or Mission CCUS) would be to support setting up of pilot plants the size of 500 tonnes per day.

Dastur Energy CEO and President Atanu Mukherjee highlighted the importance of India-US collaboration in achieving India’s energy transition goals and highlighted the role CCUS can play.

“India’s commitment to achieving net zero emissions by 2070 is a bold and ambitious goal that requires innovative solutions and international collaboration. Dastur Energy is proud to be part of this crucial discussion and believes that CCUS technologies can be a game-changer in India’s journey towards a sustainable energy future,” he added.

Broader picture: Indian economy

Saraswat stressed that carbon mitigation should not be viewed as a liability, but as a requirement which comes at a price.

“You cannot do the same (level of) mitigation, abatement without paying a price for it. So if a steel plant is going to do abatement, and if the cost of steel goes up by 1 or 2 or 3 per cent, I think it should be considered as a necessary evil. We have to accept it. There is no technology in the world, neither present or future, which will be able to achieve sustainable solutions without additional cost.”

“ In the same way, I think we all have to appreciate why there will be measures of carbon trading, carbon certificate, efficiency and improvement. What we just can’t discuss will be there, which will reduce the cost considerably, but we will have to pay a small price . Industries and the world as a whole has to prepare itself,” he emphasised.

NITI Aayog in its November 2022 report said that CCUS offers the only known technology for decarbonising the hard-to-electrify and CO2-intensive sectors such as steel, cement, oil & gas, petrochemicals & chemicals, and fertilizers. These sectors are critical for the continued growth of the Indian economy and for ensuring energy, materials and food security for the country.

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