Unlocking India’s low-carbon future through Carbon Capture, Utilisation & Storage (CCUS)

At the India BioEnergy & Tech Expo 2025, a key session underscored Carbon Capture, Utilisation & Storage (CCUS) as vital for India's decarbonization, driven by technological innovation, financing, and policy support. Experts highlighted current CO2 capture costs at $50-60/ton, stressing the need for viable business models and innovative financing to achieve scalability. The Indian government, via MNRE, is providing 50% financial support for CCUS R&D and public-private partnerships, aiming to foster indigenous, scalable solutions and position India as a technology exporter, indicating significant investment potential in the sector.

Analysis

On the second day of India BioEnergy & Tech Expo 2025, a high-impact session on “Evolving Opportunities: Technology, Finance & Beyond for CCUS” brought together industry leaders, technologists, and policymakers to explore how Carbon Capture, Utilisation & Storage (CCUS) can unlock India’s low-carbon future. Keshav Goela, Co-Chairperson, IFGE: CCUS Forum & Director, GAS LAB Asia moderated the session, bringing together technical, financial, and policy perspectives, and encouraged collaborative efforts to drive CCUS deployment at scale. Yash Agarwal, Co-Founder, Carbonetics Carbon Capture spoke on the financial dimension of CCUS, emphasizing the need for feasibility studies and viable business models. He highlighted the current cost of $50–60 per ton of CO₂ capture and stressed the importance of innovative financing solutions to make CCUS economically scalable. Abhishek Jha, Chief of Staff, UrjanovaC Pvt Ltd. presented cutting-edge CO₂ capture and conversion technologies, sharing their work on 1 TPD CO₂ capture and conversion at IIT Bombay, producing carbonates for pharma and industrial use. He envisioned affordable, indigenous CCUS solutions that make India a technology exporter in this domain Dr Sangita Kasture, Scientist G, Ministry of New and Renewable Energy (MNRE) underlined the Government of India’s commitment to CCUS through 50% financial support for R&D programs, public-private partnerships, and funding mechanisms aimed at scaling utilization pathways and ensuring energy availability. The session emphasised that technology innovation, robust financing, and supportive policy frameworks will be key to making CCUS a cornerstone of India’s decarbonisation journey. A recent session at the India BioEnergy & Tech Expo 2025 signals a concerted, high-level push to establish Carbon Capture, Utilisation & Storage (CCUS) as a cornerstone of India's decarbonization strategy. The discussion highlights a critical economic hurdle, with the current cost of CO₂ capture cited at $50–60 per ton, necessitating viable business models and innovative financing to achieve scale. The government's role is pivotal, with the Ministry of New and Renewable Energy (MNRE) committing to 50% financial support for R&D programs, significantly de-risking early-stage investment and fostering public-private partnerships. This support is already fueling tangible progress, evidenced by UrjanovaC's 1 TPD CO₂ capture and conversion project at IIT Bombay, which aims to produce industrial-use carbonates. The overarching ambition is not merely domestic deployment but to position India as an exporter of affordable, indigenous CCUS solutions, indicating a strategic, long-term government and industry alignment supported by optimistic sentiment within the sector.

Key Decisions for Investors

• Investors with private equity or venture capital mandates should scout for early-stage opportunities in Indian climate-tech, particularly in companies developing indigenous and cost-effective CCUS technologies like those presented.
• Monitor the implementation of the Indian government's announced 50% R&D financial support and the emergence of new public-private partnership frameworks, as these will be key catalysts for the sector's growth and scalability.
• For public market exposure, identify and evaluate ancillary beneficiaries, such as established industrial gas suppliers, specialty chemical producers, and engineering firms, which are poised to benefit from the build-out of a domestic CCUS infrastructure.