Even as India is to account for 15% of CCUS capacity in Asia by 2050, it will need close to US $4.3 billion in government support to enable adoption.
India’s adoption of carbon capture, utilization, and storage (CCUS) is crucial for its decarbonization efforts, but a new report from research firm Wood Mackenzie states that government support of US$4.3 billion will be necessary to ensure the viability of the projected capacity.
The report highlights that the development of a better carbon market could significantly decrease the reliance on direct government support and enhance the overall feasibility of CCUS projects.
“India is currently the third-largest emitter of carbon globally. We anticipate that its share of total emissions will rise from 8% to 14% by 2050 in our net-zero base case scenario,” stated Hetal Gandhi, lead CCUS in Asia Pacific at the firm. “Emissions from power and industrial sectors, which are classified as hard-to-abate, account for 82% of India’s total gross emissions. Therefore, the adoption of CCUS is crucial for the country’s decarbonization efforts,” Gandhi said.
India is projected to account for around 15 percent of the CCUS capacity in the Asia Pacific region by 2050. This marks a significant rise from less than 5 percent until 2035. By 2050, India is projected to achieve a capture capacity of 123 million tonnes per annum (Mtpa), contingent on government incentives. The refining and chemical industries are expected to lead in this adoption, followed by the power and steel sectors.
However, current CCUS project announcements remain low, with only 40 to 50 Mtpa dedicated to storage. While saline aquifers represent a substantial portion of India’s storage potential, the accessibility and suitability of these sites for long-term and large-scale injection still need to be assessed. This will hence limit CCUS capacity additions until 2035.
