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Carbon Capture and Utilisation (CCU)
CCU Technologies have gained attention amid India’s efforts to scale up low-carbon technologies for reducing emissions from hard-to-abate sectors. The focus is linked to policy support and budgetary allocations for CCUS.
Carbon Capture and Utilisation (CCU) Technologies:
| Dimension | Key Details |
|---|---|
| Definition | Technologies that capture carbon dioxide emissions from industrial sources or directly from air and convert them into useful products |
| Difference from CCS | CCS provides for permanent underground storage of captured carbon dioxide rather than reuse |
| Objective | Utilises captured carbon dioxide as inputs for fuels chemicals building materials or polymers |
| Framework | Follows 3 Rs of Circular Carbon Economy Remove Reuse Recycle |
| Remove | Involves point of source carbon capture technologies to reduce carbon entering the atmosphere |
| Reuse | Uses captured carbon dioxide directly without chemical alteration such as carbonation of drinks |
| Recycle | Converts captured carbon dioxide into synthetic fuels chemicals and materials including hydrocarbons using hydrogen |
| Hard to Abate Sectors | Iron steel cement fertilisers and refineries are major carbon intensive sources |
| Net Zero Alignment | Aligns with India’s net zero target of 2070 and promotes circular low carbon economy |
| Global Emission Rank | India ranks as the world’s third largest emitter of carbon dioxide |
| Union Budget 2026 Allocation | Provides total outlay of Rs 20000 crore over 5 years for Carbon Capture Utilisation and Storage |
| Initial Allocation | Rs 500 crore allocated to Ministry of Power for research and development |
| Policy Roadmap | Ministry of Petroleum and Natural Gas presented draft 2030 roadmap for CCUS |
| Private and Industrial Initiatives | Adani Group IIT Bombay pilot project JK Cement industrial testbed and ORSL Bio CCU platform converting carbon dioxide from biogas into bio alcohols and chemicals |
| Global Practices | EU Bioeconomy Strategy and Circular Economy Action Plan USA tax credits and funding model UAE Al Reyadah project and carbon dioxide to chemicals hubs using green hydrogen |