CO2 Capture Technology in India: Projects, Benefits & Future

As one of the world’s fastest-growing major economies, India faces a difficult challenge: expanding industry and energy production while also reducing greenhouse gas emissions. Renewable energy is growing rapidly, but sectors such as steel, cement, fertilizers, oil refining, and power generation still produce substantial amounts of carbon dioxide (CO₂). This is where CO2 capture technology in India could play an increasingly important role.

Instead of allowing CO₂ from industrial processes to enter the atmosphere, carbon capture systems separate the gas so it can be reused or stored. For industries where emissions are especially difficult to eliminate, this technology could provide another way to reduce their carbon footprint while India continues its broader transition toward cleaner energy.

Carbon capture, utilization, and storage (CCUS) is already being explored in India through research programs, pilot projects, and partnerships involving industry, universities, research institutions, and government agencies. Large-scale deployment remains limited, however, and CCUS comes with important questions about cost, energy use, infrastructure, and long-term storage.

It is also important to see carbon capture as one part of a much larger climate strategy—not as a substitute for renewable energy, improved energy efficiency, cleaner industrial processes, and other climate solutions.

In this guide, we’ll look at how CO2 capture technology in India works, the technologies currently being explored, notable carbon capture projects, potential benefits, major challenges, and what the future of CCUS could look like across the country.

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What Is CO2 Capture Technology?

CO2 capture technology refers to processes designed to separate carbon dioxide before it is released into the atmosphere. At an industrial facility, CO₂ can be captured from exhaust gases, compressed, transported, and then either stored underground or put to another use.

When capture is combined with the use or permanent storage of the CO₂, the broader approach is commonly called Carbon Capture, Utilization, and Storage (CCUS). Depending on the project, captured carbon dioxide can be stored in suitable deep geological formations or used to produce chemicals, fuels, building materials, and other products.

For India, one of the most important potential applications is reducing emissions from hard-to-abate industries such as cement, steel, fertilizers, refining, and petrochemicals. Some emissions from these industries come from the manufacturing process itself, which means switching to renewable electricity cannot eliminate them all. Carbon capture could help address some of those remaining emissions while different carbon capture technologies continue to develop.

How CO2 Capture Works

Although the technology varies from one facility to another, a typical carbon capture system involves four main stages:

Capture: CO₂ is separated from industrial gas streams using technologies such as chemical solvents, membranes, or solid materials that selectively capture carbon dioxide.
Compression: After separation, the CO₂ is compressed so that it can be transported more efficiently.
Transport: The compressed carbon dioxide can be moved by pipeline, ship, truck, or rail, depending on the amount being transported and the distance involved.
Storage or utilization: Finally, the captured CO₂ can be injected into suitable geological formations for long-term storage or used as a raw material in certain industrial processes.

Direct air capture (DAC) is related but different. Instead of capturing concentrated CO₂ from an industrial exhaust stream, DAC removes carbon dioxide directly from the surrounding air. Because atmospheric CO₂ is much more diluted, this process generally requires more energy than capturing emissions at their source.

Why CO2 Capture Matters for India

India produces enormous quantities of cement, steel, fertilizers, chemicals, and other materials needed for housing, transportation, infrastructure, and manufacturing. Reducing emissions from these industries is particularly challenging because there is no single technology capable of replacing every carbon-intensive process.

This is where CO2 capture technology in India could have a useful role. At facilities where emissions cannot yet be avoided through electrification, efficiency improvements, or cleaner fuels, capturing some of the remaining CO₂ may provide another route to lowering the overall carbon footprint.

CCUS should not be viewed as a replacement for renewable energy sources, green hydrogen, energy efficiency, or cleaner manufacturing. Instead, it is one of several technologies that could work alongside them, particularly in industrial sectors where eliminating emissions is technically difficult.

How CO2 Capture Technology Is Being Developed in India

India is moving beyond early discussions about carbon capture and putting more emphasis on research, demonstration projects, and technologies that could eventually operate at an industrial scale. Much of this work centers on Carbon Capture, Utilization, and Storage (CCUS) for sectors such as steel, cement, fertilizers, chemicals, refining, and power generation, where cutting emissions can be particularly difficult.

The country’s approach is not limited to simply capturing CO₂. Researchers are also studying what can be done with the carbon after it is captured, where it could be permanently stored, and how the entire process could become affordable enough for wider industrial use.

Government Support for CCUS

The Department of Science and Technology (DST) has supported CCUS research in India for several years, including projects focused on lowering capital costs, reducing energy requirements, improving safety, and solving transportation and storage challenges. DST has also participated in international research collaborations intended to accelerate the development of carbon capture technologies.

An important step came in December 2025, when DST launched an R&D Roadmap to Enable India’s Net Zero Targets through Carbon Capture, Utilization and Storage. The roadmap is intended to coordinate research, encourage collaboration, attract investment, and help promising technologies move closer to practical deployment.

India has also examined the broader policy side of CCUS. A NITI Aayog report on a potential CCUS policy framework explored issues such as financing, carbon capture costs, CO₂ transportation and storage infrastructure, industrial clusters, and incentives that could encourage companies to adopt the technology.

From Research to Industrial Projects

A major challenge now is moving promising technologies from laboratories and small demonstrations into industrial facilities.

Pilot and demonstration projects allow engineers to see how capture systems perform under real operating conditions. A technology that works well in a laboratory still needs to prove that it can operate reliably around the clock, handle large volumes of industrial gases, and capture CO₂ without consuming so much additional energy that the process becomes impractical.

Different industries also present different challenges. Capturing carbon dioxide from a fertilizer or chemical facility is not necessarily the same as capturing it from a cement plant, steel mill, or power station. The concentration and pressure of CO₂ in the gas stream can affect which technology works best and how much the process costs. NITI Aayog’s CCUS analysis notes that capture costs can vary considerably depending on the industry, CO₂ concentration, pressure, technology, and the cost of supplying power and steam.

Research and Innovation

Researchers in India are investigating several ways to make carbon capture more efficient and less expensive. Solvent-based systems remain important, but work is also being done on adsorption, membranes, improved materials, carbon mineralization, and technologies that turn captured CO₂ into useful products.

Some of these approaches are already relatively mature, while others remain experimental. That distinction matters. A promising laboratory technology may take years of testing before it is ready to process emissions from a large industrial facility.

Direct air capture (DAC) is another developing area. Unlike conventional carbon capture, which removes CO₂ from a concentrated industrial gas stream, DAC attempts to remove carbon dioxide that is already dispersed in the atmosphere. This makes it potentially useful for carbon removal, but also presents greater technical and energy challenges.

The Challenge of Scaling Up

Developing the capture technology itself is only part of the problem. A large CCUS industry would also need infrastructure capable of compressing and transporting enormous quantities of CO₂, along with well-characterized locations where carbon dioxide can be safely stored for the long term.

Cost remains another major obstacle. Capturing CO₂ requires equipment and energy, and companies need an economic reason to make those investments. Clear regulations, financing mechanisms, markets for lower-carbon products, and incentives could therefore influence how quickly commercial projects develop.

India’s progress with CCUS will ultimately depend on whether these individual pieces can work together. Research is advancing and the policy framework is becoming more developed, but moving from promising demonstrations to widespread commercial deployment will require significant investment, infrastructure, and continued technological improvement.

For that reason, CO2 capture technology in India is best viewed as one part of a broader transition that also includes renewable energy sources, energy efficiency, electrification, green hydrogen, and other climate change solutions.

Major CO2 Capture Projects in India

CO2 capture technology in India is beginning to move beyond laboratory research and small experiments.

These projects use different approaches. Some capture CO₂ and turn it into fuels or industrial materials, while others are testing mineralization, geological storage, and ways to integrate captured carbon back into manufacturing processes.

India now has operational carbon capture facilities as well as projects under construction and demonstration programs involving power generation, steel, cement, refining, and other heavy industries, according to information published by the Ministry of Power, Government of India.

Tuticorin Carbon Capture Facility

One of India’s best-known examples operates at Tuticorin Alkali Chemicals and Fertilizers Limited (TFL) in Thoothukudi, Tamil Nadu. The commercial-scale carbon capture facility was introduced in 2016 and was designed to capture approximately 60,000 tonnes of CO₂ per year.

The facility uses carbon capture technology developed by Carbon Clean to separate CO₂ from industrial emissions before the captured carbon is used in the company’s manufacturing process.

Rather than simply releasing the captured carbon dioxide, the company uses it as a feedstock in its soda ash manufacturing process. TFL currently lists its carbon dioxide recovery capacity at approximately 62,000 metric tonnes per year.

The project is particularly interesting because it demonstrates carbon capture and utilization (CCU) rather than geological storage. The CO₂ becomes an input for another industrial process, showing how captured carbon can potentially replace some conventionally sourced raw materials.

NTPC Vindhyachal CO2-to-Methanol Project

Another important development is taking place at NTPC’s Vindhyachal Super Thermal Power Station in Madhya Pradesh.

NTPC has developed a CO₂-to-methanol project at Vindhyachal that captures CO₂ from power-plant flue gas and combines it with green hydrogen to produce methanol. The facility includes a 20-tonne-per-day CO₂ capture unit and a 10-tonne-per-day methanol plant, with the Ministry of Power listing the methanol project’s annual capacity at approximately 3,000 tonnes.

This makes Vindhyachal especially noteworthy because the project goes beyond capturing emissions. It demonstrates a pathway for turning captured carbon dioxide into a useful chemical and potential fuel.

Carbon Capture at JSW Steel

India’s steel sector is another major testing ground for carbon capture. At JSW Steel’s Salav facility in Maharashtra, a carbon capture system associated with a Direct Reduced Iron unit has reached operational status.

According to the Ministry of Power, the facility has the capacity to capture approximately 500 tonnes of CO₂ per day. Projects of this scale are important because steel is one of the industrial sectors where achieving deep emissions reductions remains technically challenging.

Other Indian steelmakers are exploring the technology as well. Tata Steel reports that it has commissioned a 5-tonne-per-day carbon capture plant and is investigating how CCUS could eventually be expanded and integrated with existing steelmaking processes.

Carbon Capture in India’s Cement Industry

Cement presents a different challenge because a significant share of its CO₂ emissions results from the chemical transformation of limestone during clinker production. Changing the source of electricity alone therefore cannot eliminate all of these emissions.

India has created a group of carbon capture and utilization testbeds specifically for the cement industry, bringing universities and research institutes together with cement manufacturers.

Projects involve companies including JK Cement, JSW Cement, Dalmia Cement, and UltraTech Cement, working with institutions such as IIT Bombay, IIT Kanpur, IIT Madras, IIT Tirupati, IISc Bengaluru, CSIR-IIP, and BITS Pilani.

The technologies being tested are diverse. Some projects are capturing CO₂ from cement kiln gases, while others are investigating mineralization—the process of locking carbon dioxide into stable solid materials. Researchers are also exploring whether captured carbon can be incorporated into concrete and other construction materials.

These projects are still much smaller than India’s largest industrial capture facilities, but they provide real-world environments in which new technologies can be tested before attempting commercial-scale deployment.

Refinery and Oil Industry Projects

India’s oil and refining sector is also exploring larger CCUS projects. One notable proposal involves Indian Oil Corporation (IOCL) and ONGC in Gujarat.

The planned project would capture CO₂ associated with Indian Oil’s Gujarat refinery in Vadodara and transport it for use in enhanced oil recovery. The Ministry of Power lists the proposed project at approximately 1,500 tonnes of CO₂ per day.

Other proposed carbon-utilization projects include converting captured CO₂ into products such as acetic acid, calcium carbonate, and polycarbonate. These projects illustrate how India’s emerging CCUS strategy is considering both permanent storage and industrial uses for captured carbon.

Why These Projects Matter

Taken together, these projects show that carbon capture in India is no longer confined to academic research. Commercial facilities are operating, industrial demonstrations are underway, and larger projects are being planned.

At the same time, the differences between these projects are important. Capturing CO₂ does not automatically mean that the carbon has been permanently removed from the atmosphere. When CO₂ is incorporated into stable minerals or stored securely underground, it may remain isolated for very long periods. When it is converted into fuels or other short-lived products, some or all of that carbon may eventually return to the atmosphere.

That distinction will become increasingly important when evaluating the environmental impact of future carbon capture projects in India.

The projects underway today are therefore valuable not only for the CO₂ they capture, but also because they let engineers and policymakers learn what works at industrial scale, how much different approaches cost, and where CCUS can deliver meaningful emissions reductions alongside renewable energy and other climate change solutions.

Benefits of CO2 Capture Technology in India

The potential value of CO2 capture technology in India is greatest in places where emissions are difficult to eliminate using renewable electricity alone. Steel, cement, fertilizers, refining, and other heavy industries will continue to supply materials that India needs for infrastructure and economic development, yet many of their production processes generate substantial amounts of CO₂.

Carbon capture offers a way to address some of these emissions while other cleaner technologies continue to develop. Its benefits, however, depend heavily on where the technology is used, how much energy the capture process requires, and what ultimately happens to the captured carbon.

Reducing Emissions From Heavy Industry

The most direct benefit is preventing some industrial CO₂ from reaching the atmosphere. Carbon capture systems can separate carbon dioxide from industrial gas streams before it is released, making the technology particularly relevant to large facilities with concentrated sources of emissions.

This could be especially useful in India’s cement, steel, chemical, fertilizer, and refining industries. The climate benefit is strongest when the captured CO₂ is permanently stored or incorporated into materials that keep the carbon locked away for long periods.

Tackling Emissions That Renewable Electricity Cannot Eliminate

Renewable energy can replace fossil-fuel electricity, but it cannot solve every source of industrial emissions.

Cement is a good example. CO₂ is released not only from the fuel used to heat a cement kiln but also during calcination, the chemical process in which limestone is converted into lime. Even if a plant used cleaner energy, those process emissions would still need to be addressed.

Similar challenges exist in parts of steel, chemicals, fertilizers, and refining. For these hard-to-abate industries, carbon capture could provide another tool for reducing emissions that are difficult to avoid through electrification alone.

Turning Captured CO2 Into Useful Materials

Not every carbon capture project ends with underground storage. India is also exploring carbon capture and utilization, in which captured CO₂ becomes a raw material for another process.

Projects are investigating or already demonstrating the use of captured carbon dioxide in methanol, chemicals, carbonates, concrete, and other materials. This can create economic value from a gas that would otherwise be released.

However, not all forms of carbon utilization provide the same climate benefit. CO₂ incorporated into stable minerals or certain construction materials can remain locked away much longer than carbon used to manufacture fuels, where it may be released again when the fuel is burned.

Supporting India’s Climate Goals

India has committed to reaching net-zero emissions by 2070 and has set other targets for reducing the emissions intensity of its economy and expanding non-fossil energy capacity.

CCUS could contribute to those goals by addressing emissions from industrial processes that are difficult to eliminate with today’s alternatives. Its role is likely to be most useful when combined with rapid renewable-energy deployment, greater energy efficiency, electrification, green hydrogen, and cleaner manufacturing.

In that sense, carbon capture is not an alternative to the broader energy transition. It is a technology that could fill some of the gaps left by other climate change solutions.

Encouraging Industrial Innovation

Developing a domestic CCUS sector could also encourage innovation in engineering, materials science, chemical processing, geological assessment, CO₂ transportation, and industrial equipment.

India’s current research programs and demonstration projects give scientists and engineers opportunities to test technologies under real industrial conditions rather than only in laboratories. Experience gained from these projects could help determine which carbon capture methods are technically and economically suitable for Indian industries.

If deployment grows, building capture equipment, transport infrastructure, monitoring systems, and storage facilities would also require specialized technical skills and investment.

Helping Indian Industries Prepare for a Lower-Carbon Economy

Carbon intensity is becoming increasingly relevant in international trade. Manufacturers that can demonstrate lower emissions from products such as steel, cement, chemicals, and other industrial materials may be better positioned as major markets introduce stricter climate policies and buyers seek lower-carbon supply chains.

Carbon capture is only one way of lowering those emissions, but for some manufacturers it could become part of a broader strategy involving renewable electricity, efficiency improvements, recycled materials, cleaner fuels, and redesigned production processes.

Where Carbon Capture Fits

Perhaps the most important benefit of CO2 capture technology in India is that it provides another option where simpler solutions are not enough.

Installing solar and wind power where they can directly replace fossil-fuel generation generally makes more sense than using carbon capture as an excuse to avoid cleaner alternatives. But industrial processes are more complicated. Where emissions cannot yet be eliminated economically through renewable energy, electrification, efficiency, or alternative materials, capturing the remaining CO₂ may help reduce the climate impact.

The strongest approach is therefore not carbon capture versus renewable energy sources. India will likely need a combination of technologies, with each used where it can deliver meaningful emissions reductions most effectively.

Challenges Facing CO2 Capture Technology in India

Despite its potential, CO2 capture technology in India faces significant economic, technical, and infrastructure challenges. Capturing carbon dioxide is only the first step. A large-scale CCUS system also needs energy, transportation networks, suitable storage locations, monitoring, clear regulations, and a business case that makes the investment worthwhile.

These challenges do not mean carbon capture cannot work in India, but they help explain why moving from demonstration projects to widespread commercial deployment is difficult.

High Costs

Cost remains one of the biggest barriers. A company considering carbon capture must pay not only for the capture equipment but also for compression, transportation, storage or utilization, monitoring, and ongoing operation.

The economics can vary considerably from one facility to another. Capturing a relatively concentrated stream of CO₂ can be less complicated than separating carbon dioxide from a dilute exhaust stream. Retrofitting an existing industrial plant can also present different challenges from designing carbon capture into a new facility from the beginning.

Innovation and larger-scale deployment could lower some costs over time, but carbon capture will still need to compete with other ways of reducing emissions. In many cases, the most sensible solution will depend on the industry and the alternatives available.

Carbon Capture Requires Energy

Separating CO₂ from other gases and preparing it for transportation requires energy. This additional demand is sometimes described as the energy penalty of carbon capture.

For certain capture technologies, heat is needed to regenerate the chemicals or materials that absorb CO₂. Electricity is also required to run pumps, compressors, and other equipment.

Where that additional energy comes from matters. If a capture system requires substantial fossil-fuel energy to operate, some of its emissions benefit can be offset. Improving energy efficiency and supplying capture facilities with lower-carbon energy are therefore important parts of making CCUS more effective.

India Needs CO2 Transport Infrastructure

Capturing millions of tonnes of carbon dioxide would accomplish little without a practical way to move it to where it will be used or stored.

India does not yet have the extensive dedicated CO₂ pipeline networks and shared transport hubs that widespread CCUS deployment could require. Individual demonstration projects can sometimes use captured carbon at or near the facility, but large-scale geological storage may involve transporting CO₂ over much greater distances.

Building this infrastructure would require substantial investment as well as decisions about pipeline routes, safety standards, ownership, access, and responsibility for maintaining the network.

One possible approach is the development of CCUS clusters, where several industrial facilities share CO₂ transportation and storage infrastructure. This could reduce the need for every company to build an entirely separate system.

Finding and Verifying Suitable Storage Sites

If captured carbon dioxide is going to be permanently stored rather than used in products, India needs geological formations capable of holding it securely for very long periods.

Potential storage options include deep saline formations and depleted oil and gas reservoirs. Research suggests that India’s theoretical geological storage potential could be substantial. One peer-reviewed assessment estimated approximately 395–614 gigatonnes (Gt) of theoretical CO₂ storage capacity across the country, while other research has produced estimates in a similar range, with deep saline formations accounting for much of the potential capacity.

These large numbers should be interpreted carefully. Theoretical storage capacity does not mean that hundreds of gigatonnes of CO₂ can immediately or economically be stored. Individual sites still need detailed geological characterization to determine their actual capacity, injectivity, containment security, proximity to emission sources, and economic feasibility.

Researchers also need to understand pressure behavior and the integrity of the rock layers that would keep injected CO₂ contained. Storage sites would require monitoring during and after injection to verify where the carbon dioxide is going and detect unexpected movement or leakage.

For India, developing a clearer picture of practical and economically accessible storage capacity—and how close suitable formations are to major industrial emission sources—will be an important part of determining where large-scale CCS makes sense.

Regulations Are Still Developing

CCUS also raises regulatory questions that conventional industrial projects may not face.

For example, who is responsible for stored CO₂ decades after a storage facility closes? What monitoring is required? How should leakage be measured and reported? Who owns the underground storage space? And how should companies demonstrate that captured carbon has actually remained out of the atmosphere?

India has been developing its broader CCUS strategy, but commercial deployment will require clear rules covering transportation, storage, monitoring, environmental protection, long-term liability, and project approval.

Companies are more likely to invest billions of dollars in infrastructure when they understand how projects will be regulated and what their long-term responsibilities will be.

Not Every Use of Captured CO2 Is Permanent

Another challenge is determining the actual climate benefit of carbon utilization.

Turning captured CO₂ into concrete or stable minerals can potentially keep carbon locked away for long periods. Using CO₂ to make methanol or another fuel is different because the carbon can return to the atmosphere when that fuel is eventually burned.

This does not necessarily make carbon utilization useless. Some processes may still reduce emissions compared with conventional production methods. But the entire life cycle needs to be considered before describing a project as a long-term carbon-removal solution.

Moving From Demonstrations to Industrial Scale

Perhaps the biggest test for CCUS India is scale.

A small pilot can demonstrate that a technology works, but India’s major industrial facilities can emit enormous quantities of CO₂. Equipment that captures a few tonnes per day must eventually become systems capable of reliably handling hundreds or thousands of tonnes while operating alongside industrial production.

Scaling up also introduces practical questions about equipment reliability, maintenance, energy demand, water use, transportation, storage capacity, financing, and the availability of trained workers.

India’s current projects are valuable because they can answer some of these questions under real operating conditions. The challenge is turning successful demonstrations into systems that industries can afford and operate reliably for decades.

CCUS Has to Be Used Where It Makes Sense

The central question is not simply whether carbon capture works, but where it can produce meaningful emissions reductions compared with the available alternatives. Understanding how effective carbon capture technology is also requires considering its energy requirements, costs, storage options, and the other technologies available for reducing emissions.

For some applications, replacing fossil fuels with renewable energy sources, improving efficiency, electrifying equipment, or changing industrial processes may be simpler and less expensive. In other sectors—particularly those with unavoidable process emissions—carbon capture may provide an option that currently has few substitutes.

That is why CO2 capture technology in India should be evaluated alongside other climate change solutions, rather than treated as a universal answer to industrial emissions. The technology is most valuable when it tackles emissions that are genuinely difficult to eliminate in other ways.

The Future of CO2 Capture Technology in India

The future of CO2 capture technology in India will depend on more than whether scientists can capture carbon dioxide efficiently. For CCUS to operate at a meaningful scale, India will need technologies that are affordable, industries willing to invest in them, infrastructure capable of transporting and storing CO₂, and regulations that provide clear rules for long-term operation.

There are signs that this transition is beginning. India’s Department of Science and Technology launched a national CCUS research and development roadmap in December 2025, while industrial projects in power generation, steel, cement, chemicals, and refining are providing opportunities to test carbon capture outside the laboratory.

The next stage will be determining which technologies can move successfully from demonstration projects to reliable commercial systems.

Research Is Moving Toward Practical Applications

Indian researchers are investigating a wide range of approaches to carbon capture, from improved solvents and membranes to solid sorbents, mineralization, and lower-energy separation methods. Research is also exploring ways to convert captured CO₂ into chemicals, fuels, and construction materials.

The goal is not simply to capture more carbon. Researchers also need to reduce the amount of energy, water, equipment, and money required to capture each tonne of CO₂.

This could determine whether carbon capture becomes practical for industries operating on very large scales.

Direct air capture (DAC) is another area worth watching, although it remains different from capturing emissions directly at an industrial facility. Removing CO₂ from ordinary air is technically more demanding because carbon dioxide is present at a much lower concentration. For that reason, DAC should not be confused with the capture systems already being tested at many industrial sites.

Heavy Industry Could Be the Most Important Test

The strongest case for future CCUS deployment may be in industries where emissions cannot easily be eliminated through renewable electricity alone.

Cement is particularly important because CO₂ is produced during the chemical conversion of limestone into clinker. Steel, fertilizers, chemicals, and refining also contain processes that can be difficult to fully decarbonize with today’s technologies.

India’s existing industrial demonstrations should provide valuable evidence about where carbon capture actually works well and where other technologies make more sense.

That distinction matters. The future of CCUS should not be measured simply by how many capture plants India builds, but by how effectively those projects reduce emissions compared with the alternatives.

Carbon Utilization Could Create New Markets

India is also exploring what happens after CO₂ is captured.

Instead of treating carbon dioxide entirely as waste, some projects are using or testing it as a feedstock for methanol, chemicals, carbonates, concrete, and other materials. If these technologies become economically competitive, they could create markets for captured carbon and help offset some of the expense involved in operating capture systems.

However, the climate value depends on the product. Carbon locked into stable minerals or certain construction materials can potentially remain out of the atmosphere for long periods. CO₂ converted into fuel may eventually be released again when that fuel is used.

Future projects will therefore need to consider the full life cycle of captured carbon, not simply the amount of CO₂ entering the capture equipment.

Industrial carbon capture is only one way of managing atmospheric carbon. Natural carbon sequestration also occurs when forests and other ecosystems absorb CO₂ and store carbon in vegetation and soils.

CCUS Will Need to Work With Other Clean Technologies

Carbon capture makes the most sense as part of a broader industrial transition.

Renewable electricity can reduce emissions from power consumption. Green hydrogen could replace fossil fuels in some industrial processes. Greater efficiency can reduce the amount of energy required in the first place, while recycling and circular manufacturing can lower demand for carbon-intensive raw materials.

CCUS can then focus on emissions that remain difficult to eliminate through those approaches.

This combination may prove particularly important for India because the country must continue expanding infrastructure and manufacturing while simultaneously reducing the carbon intensity of its economy.

From Individual Projects to Shared Infrastructure

One of the biggest changes could eventually be the development of shared CCUS infrastructure.

Instead of every cement plant, steel mill, refinery, or chemical facility building an entirely separate CO₂ transportation and storage system, industrial clusters could potentially share pipelines, compression facilities, transport networks, and geological storage sites.

Such CCUS hubs could improve the economics of carbon capture by spreading infrastructure costs across multiple emitters. But creating them would require extensive planning, investment, geological assessment, and regulation.

This is one reason India’s current pilot and demonstration projects matter. They are not only testing capture equipment; they are helping reveal what would be required to build a much larger carbon-management system.

What the Next Decade Could Reveal

The coming years should provide a clearer picture of where CO2 capture technology in India genuinely adds value.

Some technologies that perform well in laboratories may prove too expensive or energy-intensive at industrial scale. Others may become practical as equipment improves and experience grows. Certain industries may find that electrification, renewable energy, green hydrogen, or alternative manufacturing processes offer a better route, while sectors with unavoidable process emissions may have a stronger case for CCUS.

For India, success will therefore mean more than capturing the largest possible quantity of CO₂. The more important goal is finding where carbon capture can produce measurable, durable emissions reductions without slowing the deployment of cleaner alternatives.

Key Takeaways

CO2 capture technology in India is moving from research and small demonstrations toward real industrial applications, particularly in steel, cement, power generation, chemicals, and refining.

India already has operational carbon capture projects, including facilities that reuse captured CO₂ to produce industrial materials and methanol. At the same time, researchers are testing new approaches to capture, utilization, mineralization, and long-term carbon storage.

The technology may be most valuable in hard-to-abate industries, where some emissions cannot easily be eliminated through renewable electricity or electrification alone. Cement production is a particularly important example because CO₂ is released directly during the chemical conversion of limestone.

Carbon capture also has limitations. It can be expensive, requires additional energy, and needs transportation, storage, monitoring, and regulatory infrastructure if it is deployed at a large scale.

Not all captured carbon provides the same climate benefit. CO₂ stored underground or locked into stable minerals can potentially remain isolated for very long periods, while carbon converted into fuels may eventually return to the atmosphere.

For India, CCUS is therefore best viewed as one part of a broader decarbonization strategy. Renewable energy sources, energy efficiency, electrification, green hydrogen, cleaner manufacturing, and other climate change solutions will remain essential alongside carbon capture.

Frequently Asked Questions About CO2 Capture Technology in India

Is CO2 capture technology currently used in India?

Yes. CO2 capture technology in India is already being used at several industrial facilities, while additional projects are under development or being tested. Examples include carbon capture and utilization at Tuticorin in Tamil Nadu, NTPC’s CO₂-to-methanol project at Vindhyachal, and capture projects in India’s steel sector. However, nationwide commercial deployment remains at an early stage compared with the scale that would be required to significantly reduce India’s total industrial emissions.

What does CCUS stand for?

CCUS stands for Carbon Capture, Utilization, and Storage. Carbon dioxide is captured from an industrial source, such as a cement plant, steel mill, refinery, or power station, and then transported for use or storage. The CO₂ may be converted into useful products or injected into suitable geological formations for long-term storage.

Which industries in India could benefit most from carbon capture?

Carbon capture could be particularly useful for India’s cement, steel, fertilizer, chemical, refining, and petrochemical industries because some of their emissions are difficult to eliminate through renewable electricity alone.

Cement is a good example. Part of its CO₂ comes directly from the chemical transformation of limestone during production, so simply powering a cement plant with renewable electricity would not eliminate all of its emissions.

Is carbon capture a replacement for renewable energy?

No. Carbon capture and renewable energy sources address different parts of the emissions problem.

Solar, wind, and other renewable technologies can replace fossil fuels in electricity generation and increasingly in other applications. Carbon capture may be more useful for industrial emissions that cannot yet be eliminated through renewable electricity, electrification, efficiency improvements, or alternative manufacturing processes.

What is the difference between CCS and CCUS?

CCS stands for Carbon Capture and Storage. In a CCS project, captured CO₂ is transported to a suitable location and stored, usually in deep geological formations.

CCUS adds “utilization” to the process. Instead of storing all captured carbon dioxide, some of it can be used to produce chemicals, fuels, construction materials, or other products.

The climate impact of utilization varies because some products can lock carbon away for long periods, while others may eventually release the CO₂ back into the atmosphere.

What are the biggest challenges facing CO2 capture technology in India?

Cost is one of the largest challenges, but it is not the only one. Carbon capture equipment requires additional energy, while large-scale deployment would also require CO₂ transportation infrastructure, suitable geological storage sites, monitoring systems, investment, and clear regulations covering issues such as long-term storage and liability.

Another challenge is scaling technologies from relatively small demonstrations to systems capable of handling the much larger emissions produced by major industrial facilities.

Can captured CO2 be reused?

Yes. Captured carbon dioxide can be used to produce materials and products such as methanol, chemicals, carbonates, and certain construction materials.

However, reusing CO₂ is not always the same as permanently removing it from the atmosphere. Carbon incorporated into stable minerals may remain locked away for a long time, while CO₂ used to produce fuel can return to the atmosphere when that fuel is burned.

Is direct air capture being developed in India?

India is exploring direct air capture (DAC) as part of broader carbon-management research, but DAC is different from conventional industrial carbon capture. Industrial systems capture relatively concentrated CO₂ from sources such as factory exhaust gases, while direct air capture removes the much more diluted carbon dioxide already present in the atmosphere.

Because of that low concentration, DAC generally requires considerably more energy and remains an emerging technology.

Can carbon capture help India reach net zero?

CCUS could contribute to India’s goal of reaching net-zero emissions by 2070, particularly by addressing emissions from hard-to-abate industries. However, carbon capture alone cannot achieve net zero.

Large-scale renewable energy deployment, greater energy efficiency, electrification, cleaner industrial processes, green hydrogen, reduced fossil-fuel dependence, and other climate change solutions will also be necessary. The most useful role for carbon capture is likely to be tackling emissions that remain difficult to eliminate through those approaches.

Final Thoughts: Where Carbon Capture Fits in India’s Clean-Energy Transition

CO2 capture technology in India has moved from an interesting research concept to something being tested in real power plants, steel facilities, cement operations, and other industrial settings.

That progress is significant, but carbon capture should not be treated as an easy solution to India’s emissions challenge. Capturing CO₂ costs money and consumes energy, and the carbon still needs to be transported, used responsibly, or stored securely. The environmental benefit also varies considerably depending on what ultimately happens to it.

Where CCUS may prove especially valuable is in tackling emissions that are genuinely difficult to eliminate in other ways. Cement and other heavy industries illustrate why India may need more than one pathway to decarbonization.

The country’s transition will ultimately involve a mixture of renewable energy sources, efficiency improvements, electrification, green hydrogen, cleaner manufacturing, and other climate change solutions. Carbon capture could have a place in that mix, particularly where industrial emissions remain difficult to eliminate—but its value should be judged by the emissions it actually prevents, not simply by the amount of CO₂ it captures.

India’s growing portfolio of research programs and industrial projects will help answer that question. What happens next could provide useful lessons not only for India, but for other rapidly developing economies facing the same difficult balance between industrial growth and deep emissions reductions.

Sources and Further Reading

This article draws on information from Indian government agencies, research organizations, and institutions involved in carbon capture research and development.

Department of Science and Technology (DST) — Carbon Capture, Utilisation and Storage (CCUS) research, development programs, collaborations, and capacity-building initiatives in India.

NITI Aayog — Carbon Capture, Utilisation, and Storage (CCUS) Policy Framework and its Deployment Mechanism in India, including capture technologies, potential CO₂ storage, financing, infrastructure, and policy considerations.

Ministry of Power, Government of India — Current information on operational, under-construction, and proposed carbon capture and utilization projects across India, including NTPC Vindhyachal, Tuticorin, and JSW Steel.

NTPC — Technical information about the Vindhyachal flue-gas CO₂ capture and methanol project, including its carbon capture, green hydrogen, and methanol production systems.

International Energy Agency (IEA) — Research, data, and analysis covering carbon capture, utilization and storage technologies, projects, CO₂ storage, and their potential role in industrial decarbonization.

Intergovernmental Panel on Climate Change (IPCC) — Scientific assessment of carbon dioxide capture, transportation, geological storage, mineral carbonation, industrial uses, costs, and the potential role of CCS in climate mitigation.