What is Carbon Capture and Storage Technology?

Carbon Capture and Storage (CCS) technology is emerging as a key solution to combat climate change, especially in countries like India, where rapid industrialization and population growth drive energy demands and carbon emissions. As the world looks for sustainable solutions to decarbonize economies, CCS presents a unique opportunity to reduce carbon footprints, especially in sectors where emissions are hard to abate, such as cement, steel, and thermal power plants.

In the Indian context, the deployment of CCS technology aligns with the country’s commitments under the Paris Agreement to reduce greenhouse gas emissions intensity and mitigate climate change effects. This article explores the importance of CCS technology for India, its challenges, and the business opportunities it presents in the Indian market.

The Need for CCS in India

India is the third-largest emitter of carbon dioxide globally, after China and the United States. With a heavy reliance on fossil fuels, particularly coal, for energy generation, and a fast-growing industrial sector, India’s carbon emissions are expected to rise as its economy expands. Despite significant efforts to increase the share of renewable energy, fossil fuels continue to dominate the energy mix. Therefore, it becomes crucial for India to adopt complementary solutions like CCS to meet its climate targets.

Key Drivers for CCS in India

1. Paris Agreement Commitments: India has pledged to reduce its greenhouse gas emissions intensity by 33-35% by 2030, compared to 2005 levels. CCS can be a vital technology to achieve this target, especially in hard-to-decarbonize sectors.
2. Industrial Growth: The Indian economy’s growth is heavily driven by energy-intensive industries like steel, cement, and thermal power, which are among the highest contributors to CO₂ emissions. CCS offers a pathway for these industries to decarbonize while maintaining production levels.
3. Energy Security: India’s reliance on coal for electricity generation, while reducing over time, is still substantial. Transitioning away from coal entirely may not be feasible in the short term, making CCS essential for mitigating emissions while continuing to use coal.
4. Job Creation and Economic Growth: The development of CCS infrastructure in India could lead to the creation of jobs in engineering, construction, and maintenance sectors. CCS can become a cornerstone for new industrial clusters focused on sustainability.

Carbon Capture and Storage Technology: An Overview

CCS is a process that involves capturing carbon dioxide (CO₂) emissions from sources such as power plants or industrial facilities, transporting it to a storage site, and sequestering it underground. CCS is typically broken down into three stages:

1. Capture: CO₂ is separated from other gases produced at large industrial processes or power plants, using methods such as pre-combustion, post-combustion, or oxy-fuel combustion capture.
2. Transport: After capture, the CO₂ is compressed and transported through pipelines, ships, or other methods to storage sites.
3. Storage: The CO₂ is injected into deep geological formations, such as depleted oil and gas fields or deep saline aquifers, where it is securely stored for centuries.

Challenges in Implementing CCS in India

Despite its potential, the deployment of CCS technology in India faces several challenges. These challenges need to be addressed through policy frameworks, investments, and technological innovation.

1. High Costs: CCS is an expensive technology, with high capital costs for capture infrastructure, transportation networks, and storage facilities. For industries already operating on thin margins, such as cement and steel, these costs can be prohibitive without government incentives or carbon pricing mechanisms.
2. Lack of Regulatory Framework: A clear policy and regulatory framework for CCS implementation is still lacking in India. This includes guidelines on CO₂ storage liabilities, monitoring, and the potential use of captured CO₂ for enhanced oil recovery (EOR) or other applications.
3. Energy Intensity: The process of capturing CO₂ is energy-intensive and may offset some of the benefits of reducing emissions if not implemented alongside energy efficiency improvements.
4. Storage Capacity and Infrastructure: India’s geological potential for storing CO₂ is still underexplored. While some studies suggest the presence of suitable storage sites, large-scale mapping and validation are needed. Developing the infrastructure for CO₂ transport and storage would require significant investment.
5. Public Perception: There is limited awareness and understanding of CCS technology in India. Concerns about the safety of underground storage of CO₂, potential leaks, and its environmental impact need to be addressed through education and transparency.

Carbon Capture and Storage (CCS) technology holds immense potential for India, both as a tool to meet its climate goals and as a business opportunity for sectors ranging from engineering and construction to carbon utilization. While the challenges are significant—high costs, regulatory gaps, and infrastructure needs—these can be addressed through innovation, investment, and partnerships between the government, industry, and international players.

India’s growing economy and industrial sectors offer a unique opportunity to integrate CCS as a key component of its decarbonization strategy. As the Indian government sharpens its focus on climate action, CCS will likely play a crucial role, opening up vast opportunities for businesses willing to invest in this transformative technology.