What needs to be done to promote development of ccus technologies in India
To achieve its goal of Net Zero by 2070, India needs to not only accelerate the deployment of commercially viable technologies but also take timely steps to support R&D and development of emerging technologies having high relevance for it. In view of the abundant coal reserves and high dependence on coal for its domestically produced energy supply, CCUS(Carbon Capture Utilisation and Sequestration) technologies present high potential for its journey to 2070 goal. In FY 2024, coal supplied 79 per cent of domestically produced energy.
Even after 50 years since the first CCUS project started in the world, the progress and contribution of CCUS to reduction of global emissions has been negligible and far less than the expectations. Operational projects capture only about 42 million tonnes per annum which is 0.1 per cent of global anthropogenic emissions.
However, IEA says that achieving Net Zero at global level would not be possible without CCUS technologies. It estimates that 6.2 giga tonnes of gas would be the required annual capacity of CCUS projects by 2050. Capture technologies have matured and pipeline transport of captured CO2 has been proven commercially. Progress on utilisation of captured gas will be critical.
However, in view of the very large quantities to be required to be captured, the sequestration ( storing the captured gas in oceanic or geological formations) will be the mainstay as the world expands deployment of CCUS. A number of countries have put in place policy framework and incentives to support its growth.
In India, a few pilot scale projects have been taken up by CPSEs and some private companies. The efforts of DST and CSIR in R&D of capture and conversion of CO2 in green products have reached the 'test bed' stage. NITI Aayog has come out in 2022 with a comprehensive study recommending the policy framework and deployment mechanism of CCUS. Further action is required without any delay.
First step would be to nominate a lead Ministry. Though applications of CCUS will fall in the jurisdiction of several Ministries, It is recommended that either the Ministry of Heavy Industry or Ministry of Coal should lead it for obvious reasons. A national mission is needed with participation of all concerned Ministries and institutions.
Recommended national policy framework should come out with specific national targets with priority amongst the sectors for development. Applications in hard-to-abate industrial sectors should be given the highest priority as emissions from the same are projected to grow rapidly in our journey to Vikshit Bharat by 2047. Cost of capture in ₹per tonne is also lower in these sectors than the coal based power plants.
Currently the cost of capture is around ₹400 per tonne in gasification projects, ₹2000 to 3000 for cement and steel plants but about ₹3200 for
coal power plants
. CCUS technologies may have definite relevance for the power sector also in the long term. There are more cost effective technologies available for its decarbonisation in the next two decades. CCUS technologies may emerge important for the power sector in the decade of 2060s if grid operations require support of base load generation and inertia from coal power plants in the scenario of less than projected expansion of nuclear power plants.
CCUS will come handy to run legacy coal plants for meeting the peak demand. The policy should also address the concerns associated with any new technology , with due attention to the liability against the project proponents arising from uncertainties in transport and storage.
As India has limited availability of concessional finance to support its energy transition, it will be appropriate to take up three to four Hub and Cluster mode projects to achieve the objectives of shared cost of transport and storage infrastructure and regulatory sandboxes in various types of geographies.
Such hubs need to be aligned with the hubs being developed in the National
Green Hydrogen
Mission as green hydrogen is a critical input to produce green products from the captured carbon dioxide. To effectively address the high perceived risk of any new technology, the project implementation in such hubs should be anchored in SPVs set up in PPP mode.
Each cluster should have projects in multiple sectors like steel, refinery, cement and coal based power plants. The grant support should be in part capex support upfront and balance per tonne of captured gas to ensure actual outcomes and successful demonstration. CCUS projects can also be supported through carbon credits by expediting the roll out of the Carbon Credit Trading Scheme. To tap this potential, CCTS framework should notify trajectory of emission intensity reduction targets for 10-15 years to facilitate investment decisions.
Preferential procurement of green products from 'utilisation' of captured gas will be a necessary intervention. It will also be necessary to set up a dedicated national institute , like we have for solar and wind, which can act as a repository of all the knowledge and updated information on identified geological formations for sequestration. Lastly, we must also assess and communicate to the policy makers the job creation potential in the full CCUS value chain to give it a rightful place in the green growth perspective of India.
(The author is former Union Power Secretary of India and is currently Partner with The Lantau Group)
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