Carbon Capture and Utilisation (CCU) is an emerging technology that aims to capture greenhouse gases such as carbon dioxide (CO2) from sources like power plants and convert them into fuels and building materials. It is beneficial for the environment as well as the companies, making such conversion extremely profitable with cheap materials. With rapid and substantial foreign direct investments from Norway and the Netherlands where CCU technology is beginning to be viewed as an important tool in the battle against climate change more attention is being paid on foreign investments.

Technologies like direct air capture, chemical looping and bioprocesses support CCU. DAC is a technology that uses chemicals in aqueous solutions to capture CO2 directly from the air, while chemical looping combustion utilizes oxygen carriers during combustion to separate CO2. Bioconversion use microorganisms to convert CO2 into biofuels, making it useful for CCU.

India is making strides in CCU due to its BioE3 (biotechnology for economy, environment and employment) policy which is in harmony with climate objectives and encourages sustainability with net-zero emissions target by 2070. The BioE3 policy, which went into effect in August 2024, is aimed at construction of biomanufacturing hubs with support in research and development on carbon capture technologies, such as high-end biomanufacturing including CCU. Policies such as these complements Prime Minister Modi’s goal of positioning of India as a biotechnology and sustainable economy superpower.

India can economically benefit more from the CCU because of new start-ups of CO2 based products and incoming foreign direct investments on green technologies. Another advantage is employment generation, particularly in CCU based research and engineering as well as manufacturing. In terms of CCU, it can also be stated that it will foster regional development by enhancing effective resource utilization that would have imported fossil fuels usage to the bare minimum. In addition, capturing emissions leads to better air than permits, benefiting public health and reducing carbon emission.

There are, however, certain factors that hinder the development of CCU technologies in India. The technology is costly. Existing public awareness and acceptance, legal factors and technical factors should be improved. Resource aspects place limitations on the widespread use of CCU technologies as a measure of nondeployment is public support. Dealing with intricate legislation and unpleasant technological aspects will take disciplined research and resourcing.

Focus areas are industry sectors for CCU in India include transportation, agriculture, manufacturing, and energy. By generating sustainable fuels from CO2, the transportation sector will rely less on fossil fuels. In agriculture, the use of excess CO2 promotes crop growth and allows for environmental-friendly practices whereas, in the manufacturing and energy sectors, carbon capture technology lowers the emissions by combining carbon capture with the actual manufacturing processes.

CCU is further advocated by government through skill development programs, public-private partnership, offering tax incentives or by financing research. With favorable policies such as BioE3, positive growth (with regard to CCU market in India) is expected which will also aid in economic development with new technologies.

Utkarsha Nayak

University/College name : School of Biotechnology, KIIT University