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Govt sanctions around 31 lakh homes under PMAY The government has sanctioned 30.76 lakh houses since the launch of Pradhan Mantri Awas Yojana (Urban) to fulfill its ambitious scheme of Housing for All by 2022, according to housing minister Hardeep Singh Puri. Around 15.65 lakh houses have been grounded and are at various stages of construction and about 4.13 lakh houses have been constructed since the launch of the mission, informed Puri. The minister was speaking at the launch of National Workshop on Accelerating Implementation of Urban Missions: PMAY(Urban) and Swachh Bharat mission(Urban).

Pegging the housing demand at around 12 million unites, the minister said the government is actively pursuing on reforms like stamp duty exemption and single window clearance. According to Puri, the in-situ slum rehabilitation (ISSR) scheme under PMAY(U) has had a few challenges in its implementation due to land related issues, financing models, selection of private developer, beneficiary participation and policy concerns of the states. However, the minister urged the states to adopt a slum-free approach and comprehensively develop their cities with focus on slum redevelopment taking complete advantage of the ISSR scheme.

Puri also called on the states to ensure better outreach for the credit-linked subsidy scheme (CLSS) and focus on convergence between the banks, private sector and home buyers. Speaking on the progress in the affordable housing in partnership (AHP) scheme, the minister said more focus should be on catering to the housing demand emerging from the economically weaker section (EWS) of home buyers with no land ownership.

The minister also urged the private builders to come forward and participate in the public private partnership models for affordable housing.

The private sector participation will also enhance access to financing and capital markets, as well as reduce costs through gains in construction, operations and time-bound delivery of houses, he said.

The government has in the past one year introduced a slew of reforms to uplift the housing sector, namely infrastructure status to affordable housing, direct tax benefits under Section 80-IBA of the Income-Tax Act, relaxation in foreign direct investment (FDI) and external commercial borrowing (ECB) proposals, reduction in holding period for long-term capital gain benefits and standardised usage of carpet area in calculating housing sizes. The government launched its flagship Housing for All by 2022 mission on June 25, 2015, which is divided into two schemes namely PMAY(Urban) and PMAY(Rural).

Binani sale attracts multinationals interest
Binani Cement has attracted interest of as many as 15 bidders, say senior officials at the company, including CRH, Lafarge and Heidelberg Cement as well as local players India Cement, Orient Cement, Ramco Cement, Shree Cement, UltraTech and Piramals. The Bank of Baroda referred the Binani Cement, a subsidiary of Binani Industries, to the National Company Law Tribunal in July after it failed to repay a Rs 970 million loan. Bidders for the company will provide a binding bid with a detailed resolution plan that would involve acquiring equity and recasting the debt by 22 December. Binani has a manufacturing capacity of 11.25 MT with integrated plants in India and China, and grinding units in Dubai, UAE.

Industrial production growth slows to 4.7%
Industrial production denoted by eight core sectors grew at a slower pace of 4.7 per cent in October, due to subdued growth of cement, steel and refinery segments. The eight infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – had clocked a growth of 7.1 per cent in October last year. The eight core industries constitute 40.27 per cent of weight of items in the index of industrial production (IIP). Cumulatively, the growth in the eight core sectors slowed down to 3.5 per cent as against 5.6 per cent in the comparable period of the last fiscal.

Electricity production continued its slow growth of September 2017. Contraction in cement output and expansion of steel output gives contradictory trend of infrastructure sector. April-October 2017 capital expenditure growth by the centre stood at 30.3 per cent, supported by steel production, while cement production defies the trend, points Devendra Kumar Pant, Chief Economist, India Ratings & Research. According data released by the Central Statistics Office, the cement production contracted by 2.7 per cent as against an expansion of 6.2 per cent in October 2016.

The output growth in the steel segment too slowed to 8.4 per cent in the last month compared to 17.4 per cent same period last year. Slowdown in refinery output growth at 7.5 per cent in October this year is less than 12.6 per cent expansion in the same month last year.

Meanwhile, the coal segment has shown significant improvement as it expanded by 3.90 per cent. It witnessed a decline of 1.9 per cent in the year-ago period. The fertiliser sector grew by 3 per cent as against 0.7 per cent in the year-ago period. Crude oil production and natural gas output have shown improvement.

Demand recovery at the mercy of govt spending
Most cement makers reported decent volume growth in the September quarter. This was led by factors such as a favourable base, a ramp-up of capacities and market share gains. Among pan-India cement makers, ACC Ltd and Ambuja Cements Ltd saw 18 per cent and 12 per cent growth in sales volumes, respectively. UltraTech Ltd’s volume growth of 18 per cent was on the back of a merger of Jaiprakash Associates Ltd’s cement capacities. Similarly, among regional firms, south-based India Cements Ltd’s double-digit volume growth, too, was driven by the merger of Trinetra Cement Ltd and Trishul Concrete Products Ltd.

On the other hand, volume growth in some markets like Tamil Nadu and Gujarat were impacted by lower sand availability and floods, respectively. Realisations were much better than anticipated despite September being a seasonally weak quarter. However, an increase in realisations was not adequate to offset the spike in fuel and power costs due to elevated petroleum coke (petcoke) prices.

Petcoke is a key input material for cement producers. Petcoke prices began to harden after August when Hurricane Harvey hit the US. Operations of oil and gas refineries were disrupted by the hurricane that led to production shutdowns, causing a shortage of the fuel. Many Indian firms rely on imported petcoke. Price of imported petroleum coke is currently hovering at $105.

Apart from that, some firms saw higher raw material cost since slag prices jumped. According to analysts, prices of slag have risen 65 per cent year-on-year (y-o-y). Freight costs, too, rose for most firms due to increased diesel prices. As a result, profitability of cement makers declined from the peak of June 2018 quarter.

The second half of the fiscal is comparatively better for the sector in terms of demand. However, the urban housing segment has slowed after the Implementation of the Real Estate (Regulation and Development) Act. So, the sector is reliant on government spending on schemes such as Housing for All, Clean India Mission and other infrastructure projects.

The sand mining issue that affected demand in certain pockets may get sorted soon. Better demand is likely to translate into further improvement in realisations. While volumes and realisations may head northwards, cement makers are unlikely to see much relief on the cost front, especially of power and fuel. The fear is that if the ongoing rally in global crude oil prices continues, it would lead to a further hardening of petcoke prices, impacting margins. Meanwhile, many large and midcap cement stocks continue to trade at expensive valuations. Given the aforementioned concerns, valuations need to correct.

GDP growth rate rises in Sept quarter
The country’s economic growth recovered to more than 6 per cent in the July-September quarter, backed by strong manufacturing, allaying doubts about disruptions caused by the goods and services tax (GST). This was a break with five quarters of declining trends in growth, but India remained behind China in economic expansion. It was de-stocking in the first quarter of 2017-18 due to pre-GST jitters that had pulled down gross domestic product (GDP) growth to a more than three-year low.

GDP rose 6.3 per cent in the quarter ended September, higher than the 5.7 per cent in the previous one on improved investment and steady demand, the data from the Central Statistics Office showed.

Construction equipment cos breathe easy after GST cut
Reduction in the GST on mining and construction equipment to 18 per cent from 28 per cent will help support infrastructure development across segments, said Anand Sundaresan, Vice-Chairman and MD of concrete pump manufacturer Schwing Stetter (India), and former President, Indian Construction Equipment Manufacturers’ Association. It is a big relief for most of the industry. But for 15 per cent of the products, the rate continues to be 28 per cent. ?We will seek reduction for those products too.? Pre-GST duty was under 20 per cent, he said.

Sundaresan told that sales declined 35 per cent in July due to GST implementation. However, things returned to normal and the overall growth was not affected as the industry grew 19 per cent in Q1 and 22 per cent in Q2. And the industry will sustain this in the current fiscal. So far, only road construction has driven growth, but the Railways has also started to offer some opportunities.

‘Leasing will become cheaper post-GST. Earlier, they had excise duty and sales tax, and on top of that service tax . The total rate worked out to 30-32 per cent. Now, leasing companies will charge only 18 per cent GST. So, it will benefit them a lot.’ Sundaresan felt that till full clarity is achieved on GST, the government should allow the industry to correct its mistakes, instead of penalising. Referring to EXCON 2017, the 9th International Construction Equipment and Construction Technology Trade Fair, to be held from December 12 to 16 in Bengaluru, Sundaresan, who is a member of the event committee, said this year’s edition will be one of the largest fairs with a display area of 2,60,000 sq m.

Affordable housing continues to see strong demand
Affordable housing continues to be much in demand accounting for 19 per cent of the overall sales in Q2 compared to 17 per cent in the previous quarter, according to data by real estate data analytics firm Liases Foras. The Mumbai Metropolitan Region (MMR) accounted for highest sales at 28 per cent with 3,388 units, followed by Ahmedabad at 24 per cent with 2,903 units during the quarter.

Sales across eight Tier-I cities decreased marginally from 64,881 units in the previous quarter to 64,781 units in the current quarter. Chennai and Kolkata witnessed a steep decline in quarter-on-quarter sales at 13 per cent and 8 per cent respectively. Sales in Hyderabad were up 11 per cent. Sales in the cost bracket of Rs 1- 2 crore and Rs. 50 lakh – Rs. 1 crore decreased 8 per cent and 5 per cent respectively. The Rs 25-50 lakh segment accounted for 36 per cent of total sales. Unsold stock in Tier-I cities declined 1 per cent. Hyderabad and NCR witnessed 5 per cent decline followed by Ahmedabad and Bengaluru at 3 per cent. Kolkata and Chennai recorded an increase in unsold stock at seven per cent and six per cent respectively. Weighted average price across Tier-I cities increased marginally by 1 per cent but Chennai alone witnessed a decline in price of 1 per cent. Prices across other cites either witnessed no change or increased marginally by one per cent.

‘Months inventory across Tier-I cities remained constant at 44. Maximum increase was seen in Chennai at 22 per cent where the number of months increased from 58 to 71, followed by Kolkata with a 16 per cent increase from 44 to 51. Hyderabad witnessed the maximum decrease of 12 per cent in months inventory. This decline is attributed to an increase in sales and a lower supply of new units in the city, said Pankaj Kapoor, MD, Liases Foras.

Amit Ruparel, MD, Ruparel Realty, said, ‘While 2017 was the year of consolidation, the sector’s growth prospects for 2018 seem to be brighter, as the impact of RERA and GST would continue to unfold in 2018.

With the overall affordable housing segment receiving an industry status in the Budget and support from the Centre under the newly introduced regulation in the Pradhan Mantri Awas Yojana, the sector will witness a steady demand in the coming year. Moreover, from the investor’s perspective, affordable apartments are easier and more profitable to sell or even to put on rent, assuring decent return of investment.’

States to adopt new technologies for building affordable homes
The government has directed states and Union territories to adopt 16 alternate innovative technologies for fast and better construction of homes under the affordable housing in partnership (AHP) and in-situ slum rehabilitation (ISSR) schemes. It also proposes to launch the global housing construction technology challenge (GHCTC) to globally identify best technologies which are suitable for mass housing.

‘States/UTs shall adopt 16 alternate innovative modern, sustainable, green and disaster resistant technologies that have been identified…,’ the Housing Ministry said in a release. Introducing seven strategies to accelerate implementation of the Pradhan Mantri Awas Yojna (Urban), the ministry asked states and Union territories to implement necessary land reforms to ensure that beneficiaries have valid land document, and put in place a single-window time bound clearance system for layout approvals and building permissions. It has also asked states to prepare a land database to ensure availability of land for affordable housing.

‘States/UTs may converge their states policies with new 8 PPP models and utilise suitably to promote affordable housing,? the ministry said. While asking states to provide incentives like additional floor area ratio (FAR) and transferable development rights (TDR) to make the ISSR projects viable, the ministry also asked them to provide rental accommodation to the slum dwellers while resettling them in ISSR projects. It has also directed states to share their respective road map with respect to slum redevelopment projects under ISSR.

To promote its flagship credit linked subsidy scheme (CLSS), the government has asked states to target teachers, Anganwadi workers, Para?military forces, state police departments, etc. The suggestions were derived from a day-long National Workshop on Accelerating Implementation of Urban Missions: PMAY(Urban) and Swachh Bharat mission(Urban) that was conducted here.

The government launched its flagship’Housing for All by 2022′ mission on June 25, 2015, which is divided into two schemes namely PMAY(Urban) and PMAY(Rural). It has so far sanctioned 30.81 lakh houses under PMAY(Urban), in which around 15.65 lakh houses have been grounded and are at various stages of construction and about 4.13 lakh houses have been constructed since the launch of the mission.

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Concrete

Fornnax Unveils the World’s Largest NPD and Demo Centre to Accelerate Global Recycling Innovation

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A 12-acre innovation campus enables Fornnax to design, test and validate high-performance recycling solutions at global standards in record time.

Fornnax has launched one of the world’s largest New Product Development (NPD) centres and demo plants, spanning more than 12 acres, marking a major step toward its vision of becoming a global recycling technology leader by 2030. Designed to accelerate real-world innovation, the facility will enable faster product design cycles, large-scale performance validation, and more reliable equipment for high-demand recycling applications.

At the core of the new campus is a live demo plant engineered to support application-specific testing. Fornnax will use this facility to upgrade its entire line of shredders and granulators—enhancing capacity, improving energy efficiency, and reducing downtime. With controlled test environments, machines can be validated for 3,000 to 15,000 hours of operation, ensuring real-world durability and high availability of 18–20 hours per day. This approach gives customers proven performance data before deployment.

“Innovation in product development is the key to becoming a global leader,” said Jignesh Kundariya, Director and CEO of Fornnax. “With this facility, we can design, test and validate new technologies in 6–8 months, compared to 4–5 years in a customer’s plant. Every machine will undergo rigorous Engineering Build (EB) and Manufacturing Build (MB) testing in line with international standards.”

Engineering Excellence Powered by Gate Review Methodology

Fornnax’s NPD framework follows a structured Gate Review Process, ensuring precision and discipline at every step. Projects begin with market research and ideation led by Sales and Marketing, followed by strategic review from the Leadership Team. Detailed engineering is then developed by the Design Team and evaluated by Manufacturing, Service and Safety before approval. A functional prototype is built and tested for 6–8 months, after which the design is optimised for mass production and commercial rollout.

Open-Door Customer Demonstration and Material Testing

The facility features an open-door demonstration model, allowing customers to bring their actual materials and test multiple machines under varied operating conditions. Clients can evaluate performance parameters, compare configurations and make informed purchasing decisions without operational risk.

The centre will also advance research into emerging sectors including E-waste, cables, lithium-ion batteries and niche heterogeneous waste streams. Highly qualified engineering and R&D teams will conduct feasibility studies and performance analysis to develop customised solutions for unfamiliar or challenging materials. This capability reinforces Fornnax’s reputation as a solution-oriented technology provider capable of solving real recycling problems.

Developing Global Recycling Talent

Beyond technology, the facility also houses a comprehensive OEM training centre. It will prepare operators and maintenance technicians for real-world plant conditions. Trainees will gain hands-on experience in assembly, disassembly and grinding operations before deployment at customer sites. Post-training, they will serve as skilled support professionals for Fornnax installations. The company will also deliver corporate training programs for international and domestic clients to enable optimal operation, swift troubleshooting and high-availability performance.

A Roadmap to Capture Global Demand

Fornnax plans to scale its offerings in response to high-growth verticals including Tyre recycling, Municipal Solid Waste (MSW), E-waste, Cable and Aluminium recycling. The company is also preparing solutions for new opportunities such as Auto Shredder Residue (ASR) and Lithium-Ion Battery recovery. With research, training, validation and customer engagement housed under one roof, Fornnax is laying the foundation for the next generation of recycling technologies.

“Our goal is to empower customers with clarity and confidence before they invest,” added Kundariya. “This facility allows them to test their own materials, compare equipment and see real performance. It’s not just about selling machines—it’s about building trust through transparency and delivering solutions that work.”

With this milestone, Fornnax reinforces its long-term commitment to enabling industries worldwide with proven, future-ready recycling solutions rooted in innovation, engineering discipline and customer collaboration.

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Balancing Rapid Economic Growth and Climate Action

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Dr Yogendra Kanitkar, VP R&D, and Dr Shirish Kumar Sharma, Assistant Manager R&D, Pi Green Innovations, look at India’s cement industry as it stands at the crossroads of infrastructure expansion and urgent decarbonisation.

The cement industry plays an indispensable role in India’s infrastructure development and economic growth. As the world’s second-largest cement producer after China, India accounts for more than 8 per cent of global cement production, with an output of around 418 million tonnes in 2023–24. It contributes roughly 11 per cent to the input costs of the construction sector, sustains over one million direct jobs, and generates an estimated 20,000 additional downstream jobs for every million tonnes produced. This scale makes cement a critical backbone of the nation’s development. Yet, this vitality comes with a steep environmental price, as cement production contributes nearly 7 per cent of India’s total carbon dioxide (CO2) emissions.
On a global scale, the sector accounts for 8 per cent of anthropogenic CO2 emissions, a figure that underscores the urgency of balancing rapid growth with climate responsibility. A unique challenge lies in the dual nature of cement-related emissions: about 60 per cent stem from calcination of limestone in kilns, while the remaining 40 per cent arise from the combustion of fossil fuels to generate the extreme heat of 1,450°C required for clinker production (TERI 2023; GCCA).
This dilemma is compounded by India’s relatively low per capita consumption of cement at about 300kg per year, compared to the global average of 540kg. The data reveals substantial growth potential as India continues to urbanise and industrialise, yet this projected rise in consumption will inevitably add to greenhouse gas emissions unless urgent measures are taken. The sector is also uniquely constrained by being a high-volume, low-margin business with high capital intensity, leaving limited room to absorb additional costs for decarbonisation technologies.
India has nonetheless made notable progress in improving the carbon efficiency of its cement industry. Between 1996 and 2010, the sector reduced its emissions intensity from 1.12 tonnes of CO2 per ton of cement to 0.719 tonnes—making it one of the most energy-efficient globally. Today, Indian cement plants reach thermal efficiency levels of around 725 kcal/kg of clinker and electrical consumption near 75 kWh per tonne of cement, broadly in line with best global practice (World Cement 2025). However, absolute emissions continue to rise with increasing demand, with the sector emitting around 177 MtCO2 in 2023, about 6 per cent of India’s total fossil fuel and industrial emissions. Without decisive interventions, projections suggest that cement manufacturing emissions in India could rise by 250–500 per cent by mid-century, depending on demand growth (Statista; CEEW).
Recognising this threat, the Government of India has brought the sector under compliance obligations of the Carbon Credit Trading Scheme (CCTS). Cement is one of the designated obligated entities, tasked with meeting aggressive reduction targets over the next two financial years, effectively binding companies to measurable progress toward decarbonisation and creating compliance-driven demand for carbon reduction and trading credits (NITI 2025).
The industry has responded by deploying incremental decarbonisation measures focused on energy efficiency, alternative fuels, and material substitutions. Process optimisation using AI-driven controls and waste heat recovery systems has made many plants among the most efficient worldwide, typically reducing fuel use by 3–8 per cent and cutting emissions by up to 9 per cent. Trials are exploring kiln firing with greener fuels such as hydrogen and natural gas. Limited blends of hydrogen up to 20 per cent are technically feasible, though economics remain unfavourable at present.
Efforts to electrify kilns are gaining international attention. For instance, proprietary technologies have demonstrated the potential of electrified kilns that can reach 1,700°C using renewable electricity, a transformative technology still at the pilot stage. Meanwhile, given that cement manufacturing is also a highly power-intensive industry, several firms are shifting electric grinding operations to renewable energy.
Material substitution represents another key decarbonisation pathway. Blended cements using industrial by-products like fly ash and ground granulated blast furnace slag (GGBS) can significantly reduce the clinker factor, which currently constitutes about 65 per cent in India. GGBS can replace up to 85 per cent of clinker in specific cement grades, though its future availability may fall as steel plants decarbonise and reduce slag generation. Fly ash from coal-fired power stations remains widely used as a low-carbon substitute, but its supply too will shrink as India expands renewable power. Alternative fuels—ranging from biomass to solid waste—further allow reductions in fossil energy dependency, abating up to 24 per cent of emissions according to pilot projects (TERI; CEEW).
Beyond these, Carbon Capture, Utilisation, and Storage (CCUS) technologies are emerging as a critical lever for achieving deep emission cuts, particularly since process emissions are chemically unavoidable. Post-combustion amine scrubbing using solvents like monoethanolamine (MEA) remains the most mature option, with capture efficiencies between 90–99 per cent demonstrated at pilot scale. However, drawbacks include energy penalties that require 15–30 per cent of plant output for solvent regeneration, as well as costs for retrofitting and long-term corrosion management (Heidelberg Materials 2025). Oxyfuel combustion has been tested internationally, producing concentrated CO2-laden flue gas, though the high cost of pure oxygen production impedes deployment in India.
Calcium looping offers another promising pathway, where calcium oxide sorbents absorb CO2 and can be regenerated, but challenges of sorbent degradation and high calcination energy requirements remain barriers (DNV 2024). Experimental approaches like membrane separation and mineral carbonation are advancing in India, with startups piloting systems to mineralise flue gas streams at captive power plants. Besides point-source capture, innovations such as CO2 curing of concrete blocks already show promise, enhancing strength and reducing lifecycle emissions.
Despite progress, several systemic obstacles hinder the mass deployment of CCUS in India’s cement industry. Technology readiness remains a fundamental issue: apart from MEA-based capture, most technologies are not commercially mature in high-volume cement plants. Furthermore, CCUS is costly. Studies by CEEW estimate that achieving net-zero cement in India would require around US$ 334 billion in capital investments and US$ 3 billion annually in operating costs by 2050, potentially raising cement prices between 19–107 per cent. This is particularly problematic for an industry where companies frequently operate at capacity utilisations of only 65–70 per cent and remain locked in fierce price competition (SOIC; CEEW).
Building out transport and storage infrastructure compounds the difficulty, since many cement plants lie far from suitable geological CO2 storage sites. Moreover, retrofitting capture plants onto operational cement production lines adds technical integration struggles, as capture systems must function reliably under the high-particulate and high-temperature environment of cement kilns.
Overcoming these hurdles requires a multi-pronged approach rooted in policy, finance, and global cooperation. Policy support is vital to bridge the cost gap through instruments like production-linked incentives, preferential green cement procurement, tax credits, and carbon pricing mechanisms. Strategic planning to develop shared CO2 transport and storage infrastructure, ideally in industrial clusters, would significantly lower costs and risks. International coordination can also accelerate adoption.
The Global Cement and Concrete Association’s net-zero roadmap provides a collaborative template, while North–South technology transfer offers developing countries access to proven technologies. Financing mechanisms such as blended finance, green bonds tailored for cement decarbonisation and multilateral risk guarantees will reduce capital barriers.
An integrated value-chain approach will be critical. Coordinated development of industrial clusters allows multiple emitters—cement, steel, and chemicals—to share common CO2 infrastructure, enabling economies of scale and lowering unit capture costs. Public–private partnerships can further pool resources to build this ecosystem. Ultimately, decarbonisation is neither optional nor niche for Indian cement. It is an imperative driven by India’s growth trajectory, environmental sustainability commitments, and changing global markets where carbon intensity will define trade competitiveness.
With compliance obligations already mandated under CCTS, the cement industry must accelerate decarbonisation rapidly over the next two years to meet binding reduction targets. The challenge is to balance industrial development with ambitious climate goals, securing both economic resilience and ecological sustainability. The pathway forward depends on decisive governmental support, cross-sectoral innovation, global solidarity, and forward-looking corporate action. The industry’s future lies in reframing decarbonisation not as a burden but as an investment in competitiveness, climate alignment and social responsibility.

References

  • Infomerics, “Indian Cement Industry Outlook 2024,” Nov 2024.
  • TERI & GCCA India, “Decarbonisation Roadmap for the Indian Cement Industry,” 2023.
  • UN Press Release, GA/EF/3516, “Global Resource Efficiency and Cement.”
  • World Cement, “India in Focus: Energy Efficiency Gains,” 2025.
  • Statista, “CO2 Emissions from Cement Manufacturing 2023.”
  • Heidelberg Materials, Press Release, June 18, 2025.
  • CaptureMap, “Cement Carbon Capture Technologies,” 2024.
  • DNV, “Emerging Carbon Capture Techniques in Cement Plants,” 2024.
  • LEILAC Project, News Releases, 2024–25.
  • PMC (NCBI), “Membrane-Based CO2 Capture in Cement Plants,” 2024.
  • Nature, “Carbon Capture Utilization in Cement and Concrete,” 2024.
  • ACS Industrial Engineering & Chemistry Research, “CCUS Integration in Cement Plants,” 2024.
  • CEEW, “How Can India Decarbonise for a Net-Zero Cement Industry?” (2025).
  • SOIC, “India’s Cement Industry Growth Story,” 2025.
  • MDPI, “Processes: Challenges for CCUS Deployment in Cement,” 2024.
  • NITI Aayog, “CCUS in Indian Cement Sector: Policy Gaps & Way Forward,” 2025.

ABOUT THE AUTHOR:
Dr Yogendra Kanitkar, Vice President R&D, Pi Green Innovations, drives sustainable change through advanced CCUS technologies and its pioneering NetZero Machine, delivering real decarbonisation solutions for hard-to-abate sectors.

Dr Shirish Kumar Sharma, Assitant Manager R&D, Pi Green Innovations, specialises in carbon capture, clean energy, and sustainable technologies to advance impactful CO2 reduction solutions.

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Concrete

Carbon Capture Systems

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Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, explores the challenges and strategic considerations for cement industry as it strides towards Net Zero goals.

The cement industry does not need a reminder that it is among the most carbon-intensive sectors in the world. Roughly 7–8 per cent of global carbon dioxide (CO2) emissions are tied to cement production. And unlike many other heavy industries, a large share of these emissions come not from fuel but from the process itself: the calcination of limestone. Efficiency gains, fuel switching, and renewable energy integration can reduce part of the footprint. But they cannot eliminate process emissions.
This is why carbon capture and storage (CCS) has become central to every serious discussion
about cement’s pathway to Net Zero. The industry already understands and accepts this challenge.
The debate is no longer whether CCS will be required—it is about how fast, affordable, and seamlessly it can be integrated into facilities that were never designed for it.

In many ways, CCS represents the ‘last mile’of cement decarbonisation. Once the sector achieves effective capture at scale, the most difficult part of its emissions profile will have been addressed. But getting there requires navigating a complex mix of technical, operational, financial and regulatory considerations.

A unique challenge for cement
Cement plants are built for durability and efficiency, not for future retrofits. Most were not designed with spare land for absorbers, ducting or compression units. Nor with the energy integration needs of capture systems in mind. Retrofitting CCS into these existing layouts presents a series of non-trivial challenges.
Reliability also weighs heavily in the discussion. Cement production runs continuously, and any disruption has significant economic consequences. A CCS retrofit typically requires tie-ins to stacks and gas flows that can only be completed during planned shutdowns. Even once operational, the capture system must demonstrate high availability. Otherwise, producers may face the dual cost of capture downtime and exposure to carbon taxes or penalties, depending on jurisdiction.
Despite these hurdles, cement may actually be better positioned than some other sectors. Flue gas from cement kilns typically has higher CO2 concentrations than gas-fired power plants, which improves capture efficiency. Plants also generate significant waste heat, which can be harnessed to offset the energy requirements of capture units. These advantages give the industry reason to be optimistic, provided integration strategies are carefully planned.

From acceptance to implementation
The cement sector has already acknowledged the inevitability of CCS. The next step is to turn acceptance into a roadmap for action. This involves a shift from general alignment around ‘the need’ toward project-level decisions about technology, layout, partnerships and financing.
The critical questions are no longer about chemistry or capture efficiency. They are about the following:

  • Space and footprint: Where can capture units be located? And how can ducting be routed in crowded plants?
  • Energy balance: How can capture loads be integrated without eroding plant efficiency?
  • Downtime and risk: How will retrofits be staged to avoid prolonged shutdowns?
  • Financing and incentives: How will capital-intensive projects be funded in a sector with
    tight margins?
  • Policy certainty: Will governments provide the clarity and support needed for long-term investment
  • Technology advancement: What are the latest developments?
  • All of these considerations are now shaping the global CCS conversation in cement.

Economics: The central barrier
No discussion of CCS in the cement industry is complete without addressing cost. Capture systems are capital-intensive, with absorbers, regenerators, compressors, and associated balance-of-plant representing a significant investment. Operational costs are dominated by energy consumption, which adds further pressure in competitive markets.
For many producers, the economics may seem prohibitive. But the financial landscape is changing rapidly. Carbon pricing is becoming more widespread and will surely only increase in the future. This makes ‘doing nothing’ an increasingly expensive option. Government incentives—ranging from investment tax credits in North America to direct funding in Europe—are accelerating project viability. Some producers are exploring CO2 utilisation, whether in building materials, synthetic fuels, or industrial applications, as a way to offset costs. This is an area we will see significantly more work in the future.
Perhaps most importantly, the cost of CCS itself is coming down. Advances in novel technologies, solvents, modular system design, and integration strategies are reducing both capital requirements
and operating expenditures. What was once prohibitively expensive is now moving into the range of strategic possibility.
The regulatory and social dimension
CCS is not just a technical or financial challenge. It is also a regulatory and social one. Permitting requirements for capture units, pipelines, and storage sites are complex and vary by jurisdiction. Long-term monitoring obligations also add additional layers of responsibility.
Public trust also matters. Communities near storage sites or pipelines must be confident in the safety and environmental integrity of the system. The cement industry has the advantage of being widely recognised as a provider of essential infrastructure. If producers take a proactive role in transparent engagement and communication, they can help build public acceptance for CCS
more broadly.

Why now is different
The cement industry has seen waves of technology enthusiasm before. Some have matured, while others have faded. What makes CCS different today? The convergence of three forces:
1. Policy pressure: Net Zero commitments and tightening regulations are making CCS less of an option and more of an imperative.
2. Technology maturity: First-generation projects in power and chemicals have provided valuable lessons, reducing risks for new entrants.
3. Cost trajectory: Capture units are becoming smaller, smarter, and more affordable, while infrastructure investment is beginning to scale.
This convergence means CCS is shifting from concept to execution. Globally, projects are moving from pilot to commercial scale, and cement is poised to be among the beneficiaries of this momentum.

A global perspective
Our teams at Stantec recently completed a global scan of CCS technologies, and the findings are encouraging. Across solvents, membranes, and
hybrid systems, innovation pipelines are robust. Modular systems with reduced footprints are
emerging, specifically designed to make retrofits more practical.
Equally important, CCS hubs—where multiple emitters can share transport and storage infrastructure—are beginning to take shape in key regions. These hubs reduce costs, de-risk storage, and provide cement producers with practical pathways to integration.

The path forward
The cement industry has already accepted the challenge of carbon capture. What remains is charting a clear path to implementation. The barriers—space, cost, downtime, policy—are real. But they are not insurmountable. With costs trending downward, technology footprints shrinking, and policy support expanding, CCS is no longer a distant aspiration.
For cement producers, the decision is increasingly about timing and positioning. Those who move early can potentially secure advantages in incentives, stakeholder confidence, and long-term competitiveness. Those who delay may face higher costs and tighter compliance pressures.
Ultimately, the message is clear: CCS is coming to cement. The question is not if but how soon. And once it is integrated, the industry’s biggest challenge—process emissions—will finally have a solution.

ABOUT THE AUTHOR:
Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, holds expertise in project management, strategy, energy transition, and extensive international leadership experience.

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