India’s CCUS mission: Paving the way to net-zero by 2070

India is taking a step towards its net zero emissions target by 2070 with the launch of the National Carbon Capture, Utilisation, and Storage (CCUS) Mission. This initiative aims to decarbonize hard-to-electrify industrial sectors, reduce CO2 emissions, and pave the way for a sustainable future. By promoting CCUS technologies and collaborating with industry and academia, India is set to revolutionize its approach to carbon management and climate goals.

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According to NITI Aayog Member V.K. Saraswat, the government is developing a national CCUS mission that could offer financial and other incentives to promote its widespread adoption. This initiative is led by the Union power ministry, NITI Aayog, and Principal Scientific Adviser to the Government of India. CCUS mission will play a critical role in helping India achieve its ambitious net zero emissions target by 2070.

Mission CCUS, moving toward decarbonization           

As per the NITI Aayog’s report in 2022, India is the third-largest CO2 emitter globally, following China and the US, with annual emissions of about 2.6 gigatonnes. The Indian government has set targets to reduce CO2 emissions by 50% by 2050 and to achieve net zero by 2070. 

The report noted that although the expansion of renewable energy has been a notable success in India’s clean energy transition, the power sector accounts for only one-third of the total CO2 emissions. This proportion is expected to decrease as renewables gradually replace fossil fuels. However, the growing industrial sector which contributes nearly another third of emissions, is difficult to decarbonize and is likely to increase unless new technologies and carbon reduction methods are implemented. 

The report highlighted that CCUS will be key in decarbonizing the domestic industrial sector. This Carbon Capture Utilisation and Storage (CCUS) technology is crucial for decarbonization since the industrial sector is difficult to electrify, and cutting CO2 emissions in this sector is challenging due to its reliance on fossil fuels. The hard-to-electrify and CO2-intensive sector includes steel, cement, oil & gas, petrochemicals & chemicals, and fertilizer industries.

The government is therefore planning to launch CCUS mission aimed at not only promoting CCUS technologies but also collaborating with industry and academia to develop a roadmap for an India-specific ecosystem.

According to Saraswat, “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.” 

He further stated, “We now need to come out with a mission mode approach, and that is why the government is proposing that we launch a CCUS mission in which viability gap funding (VGF), carbon pricing and taxing mechanism, carbon trading and subsidies in terms of PLI can be provided to reduce the carbon footprint.”

He informed that one of the key elements of the mission mode approach would be to support the setting up of pilot plants that can capture 500 tonnes of CO2 per day.

During the 32nd annual general meeting of the American Chamber of Commerce in India (AMCHAM India), Saraswat presented data on CO2 storage potential across India. He revealed the projected CO2 storage potential/capacities in India from 2030 to 2050 as: 388.9 gigatonnes for the western region; 80.58 gigatonnes for the southern region; 76.3 gigatonnes for the eastern region; 47.2 gigatonnes for the north-eastern region; and 7.65 gigatonnes for the northern region. 

He noted that to achieve its ambitious net-zero emissions goal by 2070, India must prioritize the advancement and deployment of CCUS technologies across its industrial and energy sectors. Partnering with international players, such as the US, will be crucial for speeding up innovation, enhancing deployment, and reducing costs, he emphasized.

Saraswat further informed that the global CCUS market, valued at US$2.49 billion in 2022, is expected to grow at an annual rate of 13.3% from 2022 to 2030. Presently, about 361 million tonnes per annum (mtpa) of CO2 capture capacity is under development worldwide. 

Saraswat highlighted that carbon mitigation should be viewed as a requirement rather than a liability. He noted that achieving effective mitigation and abatement inevitably involves costs. He also stressed that no current or future technology can offer sustainable solutions without incurring additional costs. Carbon capture represents roughly 75% of the net CCUS costs.

CCUS has gained momentum over the past two years due to its potential to help decarbonize the power sector, considering India’s reliance on coal for over 70% of its electricity needs. 

The CCUS technology involves capturing CO2 emissions from major industrial sources, like power plants or facilities using fossil fuels or biomass. If the CO2 is not utilized directly at the source, it is compressed and transported by pipeline, ship, rail, or truck. The captured CO2 can then be employed in various applications or stored by injecting it into deep geological formations, such as depleted oil and gas reservoirs or saline aquifers.

This technology can be integrated into existing power and industrial plants, enabling them to remain operational. It is expected to be crucial for meeting global net-zero objectives. This initiative by the government underscores the critical role of CCUS in managing industrial emissions and advancing the country’s climate goals.