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India is preparing a national push for carbon capture technologies, offering substantial incentives to selected projects to encourage industries to integrate CCUS with coal-based energy systems. The government aims to use these technologies to manage rising electricity demand while reducing emissions, with potential funding covering 50% to 100% of project costs. Coal will continue to play a central role in India's energy strategy, with capacity set to grow. Initiatives also explore synthetic natural gas and gasification to lower imports and emissions, aligning with global climate goals.
India is set to introduce a national initiative to promote carbon capture, utilisation, and storage (CCUS) technologies, offering significant government incentives to selected projects. Rajnath Ram, energy adviser at NITI Aayog, highlighted that funding support for such projects could range from 50% to 100%, aiming to help industries adopt carbon capture technologies and integrate them with coal-based power systems. Advertisement
CCUS technology captures carbon dioxide either from the atmosphere or directly at the point of emission, storing it safely underground. Ram pointed out that India's electricity consumption is rising rapidly, and coal is expected to remain a central part of the energy mix over the next twenty years. He emphasized the importance of using coal sustainably rather than eliminating it outright.
The adviser also noted that converting coal into synthetic natural gas could reduce the country's natural gas imports by nearly half, though the commercialisation of this technology continues to face challenges. While India is targeting 500 GW of non-fossil fuel capacity by 2030, coal will remain vital for energy security. Plans include increasing coal-based capacity by 97 GW by 2035, bringing the total to around 307 GW, ensuring continuous power supply.
The government is additionally exploring the integration of carbon capture with gasification projects to reduce emissions. On the global front, many countries have already implemented CCUS projects, and the International Energy Agency views the technology as a critical tool in meeting international climate targets.
Source- Reuters
5th Jun, 2025
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