India Launches Ambitious Carbon Capture Utilization and Storage Program with Significant Government Investment

The Indian government is set to implement a comprehensive Carbon Capture Utilization and Storage (CCUS) program, estimated at ₹38,900 crore. The initiative will include various sub-schemes, with some receiving full government funding for research and development. The program aims to support hard-to-abate sectors like iron, chemicals, and coal power generation, and will unfold over multiple phases, starting with a six-year timeline. The government plans to contribute more than ₹19,500 crore, with additional financing from bank loans and multilateral institutions.

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Published Sep 17, 2025

HYDROGEN CARBON CAPTURE

The Indian government is preparing to launch a transformative Carbon Capture Utilization and Storage (CCUS) program, estimated to cost ₹38,900 crore. This ambitious initiative reflects India's commitment to reducing carbon emissions, aiming for a 50% reduction by 2050 and achieving net-zero emissions by 2070. To fund the program, the government intends to contribute over ₹19,500 crore, while additional financing will be sought through bank loans and support from multilateral institutions.

The CCUS program is expected to support various hard-to-abate sectors, including iron, chemicals, petrochemicals, and coal-based power generation. It will be rolled out in multiple phases, starting with a proposed six-year timeline.

Within this framework, distinct sub-schemes will be established, some of which may receive full government financing, particularly for research and development. Other projects may benefit from 40% to 50% funding, with semi-commercial projects likely to attract complete financial backing.

As coal-fired power plants continue to play a vital role in India's energy landscape, the deployment of CCUS technology becomes increasingly pertinent. This technology captures carbon dioxide emissions from industrial sources, including power plants and manufacturing facilities, thus addressing the pressing challenge of climate change. Industry experts note that while CCUS technology is currently seen as expensive, its costs could decline as it scales up.

Additionally, the plan may incorporate geological sequestration, which involves permanently storing carbon dioxide in geological formations. This strategy aims to complement utilization technologies, ensuring a comprehensive approach to carbon emission abatement.

The government’s initiative aligns with global trends, as countries like the United States, Australia, and Canada have also begun to invest in CCUS technologies. As India charts its path towards a sustainable future, this program represents a critical step in the nation’s environmental commitment.