Economy & Market
Yet to reach all corners
Published
6 years agoon
By
admin
The organised segment continues to focus on innovative special concrete, quality and timely delivery, while the unorganised players tend to reduce the operating costs by lower compliances tax evasions and employing unskilled labour at cheaper costs, says Atul Desai.
The construction industry is having a significant role in the India’s development and it contributes about 8-10 per cent to GDP on an average. Developing nations like India need to have faster construction with high quality, durability and a pollution-free environment, which can be achieved only with ready-mix concrete (RMC).
Market size
Overall economic slowdown impacted commercial and industrial construction combined with sluggish residential real estate activity and resulted in moderate rise in RMC market at a CAGR of 4-5 per cent to reach an estimated Rs 215 billion (58 million cubic meters) in 2015-16 from Rs 184 billion (50 million cubic meters) in 2012-13. This growth is anticipated to increase to 6-8 per cent CAGR touching close to 300 billion (81 million cubic meters) by 2020-21. The growth in RMC demand may be primarily attributed to government-infused spending in infrastructure and expected demand from affordable housing.
Growth trends & future projections
Real estate currently accounts for 60-65 per cent of RMC consumption with residential real estate occupying the majority share (38-42 per cent). Further while infrastructure constitutes about 32-35 per cent of RMC demand, industrial and commercial construction constituted about 26-28 per cent of the total RMC consumption in 2016-17.
RMC penetration, measured as the proportion of cement consumed in commercial RMC to total cement consumption in India, is expected to increase to 10 per cent by 2020-21 from the current 7 per cent on the back of healthy demand growth, increased usage in infrastructure projects and penetration of RMC plants in tier-II/ tier-III cities, consistent quality requirements, stringent project timeline, and higher focus on safety and quality norms amongst others. RMC penetration in India has gradually risen with increasing acceptability and usage of higher grade of concrete; however, the current levels are very low compared to other developed economies such as USA, Europe and China where it is above 65-70 per cent.
Southwest, India is anticipated to continue to grow faster than rest of India and is expected to contribute close to 70 per cent of total growth of RMC. North and East may have stable growth and their contribution to RMC growth is only 10 per cent, which may remain more or less range bound till 2020-21.
The biggest demand drivers for the country’s RMC and batching plant segments will be the Indian Government’s large-scale infrastructure and housing for all scheme. These infrastructure projects include the Bharatmala Pariyojana, Sagarmala, the Smart Cities Mission and the Pradhan Mantri Awas Yojana, and Affordable housing. The Government initiatives on the dedicated freight corridors have also provided opportunities for setting up new RMC plants across the country. With rapid urbanisation, the Indian construction industry has witnessed a major move towards complex architectural structures in commercial buildings, elevated driveways, coastal highways, bullet trains, etc., which may further fuel the demand for high performance concrete.
National capacities & regional/metro capacities
The cumulative current RMC capacity is estimated at about 60,000 cu.m/hr with a relatively comparative spread of commercial and dedicated batching plants across India. RMC demand also has increased at a CAGR of 4-5 per cent. However, owing to inadequate awareness and soft government norms, conversion from site mix is at a very negligible pace especially in small towns and rural areas.
Mumbai and Delhi alone constitute close to 45-50 per cent of total consumption in West and North respectively whereas, Bengaluru and Hyderabad put together constitute about 45 per cent of total consumption in South.
Going further, tier-II and tier-III cities may catch up soon, and the concentration of capacities is expected to gradually rise in such cities too.
Hotspots of growth
Key demand centres of western and southern regions are the most favourable markets for RMC business. Mumbai, Nagpur from West and Chennai, Hyderabad and Amravati from southern region are among the top ranked cities for RMC business attractiveness.
Mumbai leads the city-wise attractiveness list. Construction of multiple metro rail corridors, coastal road, trans harbour sea link and Mumbai-Nagpur Expressway to name a few may spurt RMC demand.
Challenges for growth
Site mix is still prominent due to lack of awareness and lack of focus on quality control and quality assurance – grey areas neglected by the Government authorities.
Capacity utilisation continues to remain low across regions due to restricted traffic hours, limited hours of functioning, stringent regulatory norms and diverse nature of business.
Low capex encourages growth of unorganised players, a segment which is yet to professionalise this business in the right direction.
Availability of consistent quality raw materials.
Increasing credit exposure to the real estate segment, which is under stress due to drop in sales and liquidity crunch is a major concern.
Issues at hand
Deterioration in quality due to site mix.
Limited supply of consistent quality river sand and availability of aggregate nearer to major city.
Freshly-made RMC needs to be placed or used in a fixed time frame, but transportation is a constraint due to huge traffic congestion and entry restrictions in city.
The perishable nature of RMC necessitates the need for the RMC batching plant to be located near construction sites. However, the setting up of commercial plants in metro cities is a challenge due to space constraints as there is no designated zone for RMC units,
Output is restrained due to reduction of working hours – no night work is entertained in residential zones.
Unrealistic short duration and multi-layer Government approvals lead to uncertainty of the plant locations.
Increase in credit exposure to real estate segment has led to huge working capital requirements.
Limited existence of product differentiation and less technological know-how due to spurt in local players is also a significant issue.
Unethical practices by local players.
Outward transport: 12-15 per cent (Unpredictable oil prices, which are directly linked to global crude oil prices are as well increase the cost.)
Power: 2-3 per cent
Wages: 7-8 per cent
Other overheads: 4-6 per cent
Cost due to high working capital because of huge credit exposure to real estate developer segment
Operating margins: 3-6 per cent
The organised segment continues to focus on innovative special concrete, quality and timely delivery. The segment is thus marred with high operating cost owing to high overheads and expenses, which are incurred on training, safety, technology, continuous R&D, QA/QC and testing to bring about transparency in the process. Huge credit exposure also carries significant cost.
The unorganised players, on other hand, tend to reduce the operating costs by lower compliances tax evasions and employing unskilled labour at cheaper costs, overlooking safety/quality norms with minimal upkeep and maintenance of the batching plant.
Crucial differentiators
RMC is operated in the local market, but provides global solutions, which are a real differentiator.
Quality and customised concrete suitable for each application, combined with speed at optimum cost differentiates RMC with site mix.
RMC being a service oriented industry; timely reach to the customer is significant.
Quality authorised labs affiliated to recognised professional bodies to ensure quality assurance and control.
Value offerings in form of special products – providing complete concrete solutions as below mentioned give an edge:
A.PRISM RMC Dyecrete: Aesthetic, though durable, solution to floor dTcor is the best replacement of erstwhile paver blocks. It is safe and minimises accidents. Above all it’s available in variety of designs and patterns to colour ones imagination.
B.PRISM RMC Perviouscrete: Instant solution to water logging at walkways/landscape/parking zones, additionally it may help in water harvesting and storing too.
C.PRISM RMC Elitecrete: Solution for thermal insulation. It is a lightweight concrete, which beats the heat on terrace floor, and is the best alternative to conventional brick-bat coba.
D.PRISM RMC Portacrete: Solution in portable ready-to-pour bags (30 kg) available for small concrete pours like stand- alone columns, starters, etc. and a quality replacement to site mix for all grades.
E.PRISM RMC Easycrete: High-performance concrete solution to congestion of steel reinforcement in the structural components like columns/beam-column junction/slabs, where concrete placement becomes easier due to its flowable and self-compacting properties.
F.PRISM RMC FRCcrete: Solution to rapid wear and tear, cracking. The addition of special fibres (steel/polypropylene) increases the structural integrity and improves durability. Best suited for concrete slabs/industrial floors, etc.
G.PRISM RMC Repaircrete: Strengthening solution for extra life. This ready to pour micro-concrete is best suited used for jacketing of structural members, and all types of repair work where quality, workmanship and space is a constraint.
H.PRISM RMC UTWT: Durable concrete solution towards early opening of road to common man. Reduced thickness concrete road, faster in construction with reduced maintenance cost and improved service life.
Additionally we have,
1.Megacrete: Solution to high strength concrete for tall towers,
2.Environcrete: Solution towards ?go green? concept, utilising fly ash and GGBS, which are byproducts of thermal power plants and steel units respectively.
3.Thermocrete: Solution towards reducing heat of hydration in mass concrete
4.Coastcrete: Solution to aggressive attacks from sulphates, chlorides in water and soil.
Cement downstreams v/s standalone players
RMC is a local business, provides global solutions.
Its more construction service oriented business and hence may be seen as standalone business.
RMC provides opportunity to cement companies to understand the customer closely, thereby avoiding commercialisation of cement.
Various options of cement are available.
RMC may also offer aggregate crushers opportunity to ride on value chain, locking the customers.
Pragmatically, since local flavour is more prominent and a lot of options w.r.t cement are available, standalone plants preferably supported by aggregate supply back up may be desired.
Organised v/s unorganised players
Majority forward integrated players with nation-wide business reach constitute organised segment. They have large operational setups with huge capacities in anticipation of meeting the long-term demand. The product offerings are application based superior ones and they maintain highest safety standards. Their labs are usually certified by professional bodies like BIS/QCI/NABL and are well equipped. Continuous R&D is part and parcel of business, resulting in to new product developments and implementation of out-of-box innovations. Driven by professionalism, lots of focus is on training and development of the team.
Whereas, unorganised players are the local standalone one, who caters to regional demand with smaller capacities thriving on moderate profitability. Prices are generally lower and product offerings are standard replicated ones. Desired standards and quality are rarely implemented. Safety is a big concern. Grades widely used are replicated and on-the-job training is usually carried out.
Impact of demonetisation
Demonetisation had majorly hit residential real estate construction, which is characterised by large cash transactions. Furthermore, demonetisation also severely impacted unorganised players thriving on tax evasion and cash payments.
Impact of GST
Cement will attract 28% GST resulting in increased costs for the infrastructure sector. GST in India was a dream to reform various area of economy and taxation system. Implementation of GST has benefitted organised players as the same has brought about transparency in dealings.
Recommendations to the Government
Construction industry in India is in developing stage and the role of Government in bringing about changes is very significant as many areas need complete revamping. A few suggestions relevant suggestions are below mentioned:
Stringent and well-defined QA/QC and safety norms need to be laid down by the Government, which discourages and completely abolishes usage of site mix.
RMC being environment-friendly and pollution-free industry, the Government must enforce usage of RMC at all levels and ban site mix.
RMC being a green industry needs to have designated zones for setting up plants in major cities with long term approval of 10 years to reduce establishment cost.
Long terms single-window approvals from the Government, avoiding multiple agencies for ease-in-business and sustainability is expected.
Value concrete and environment-friendly solutions like UTWT for roads, Dyecrete for pavements and perviouscrete to avoid water logging may be recommended or even made mandatory as the case be.
To avoid accidents and have a safe ride, paver blocks need to be banned and better alternative solutions like Dyecrete?stamped concrete need to be specified.
Solution to traffic restrictions need to be worked out and permission to transport through transit mixers 24×7 should be allowed.
Quality authorisation from BIS/QCI should be mandatory not only for prequalification and tenders, but also for small sites.
Sops may be considered for encouraging RMC industry towards its valuable contribution by becoming environment friendly in "go green" concept utilising fly ash and GGBS.
About the author
Atul Desai is Executive Director & CEO of Prism Johnson (RMC India Division) a Rajan Raheja Group. Desai is currently helming RMC (India) Division employs over 3500 employees and operates a total of 101 ready-mixed concrete and aggregate crushing plants in 44 towns and cities across the nation. He possesses a strong business and leadership record as CXO and has a deep understanding of the consumer and business landscape in the Indian region. Desai is also a Secretary of Ready Mixed Concrete Manufacturers’ Association (RMCMA).
Economy & Market
Jayesh Ranjan & Cement Expo Forum Leaders converge in Hyderabad
Published
1 week agoon
February 28, 2025By
admin
February 28, 2025, Mumbai
Fireside chat to discuss infra growth story
Creating new business possibilities
Economy & Market
Walplast Expands HomeSure MasterTouch Line
It is a high-quality yet affordable wall paint
Published
4 weeks agoon
February 13, 2025By
admin
Walplast Products, a leading manufacturer of building and construction materials, has unveiled the expansion of its esteemed HomeSure MasterTouch portfolio with the launch of the new HomeSure MasterTouch Lush (Interior & Exterior Emulsion) and HomeSure MasterTouch Prime (Interior & Exterior Primer). These new offerings are strategically positioned as high-quality, yet affordable, high-performance solutions designed to enable individuals to achieve their dream of beautiful homes and “Elevating Lifestyles” (Raho Shaan Se).
The HomeSure MasterTouch Lush Interior Emulsion is a high-quality yet affordable wall paint that delivers best-in-class coverage and an aesthetically appealing, durable finish. Formulated with premium pigments and acrylic binders, it ensures excellent coverage, colour retention, and resistance to fungus, making it an ideal choice for homeowners seeking durability and value. Meanwhile, the HomeSure MasterTouch Lush Exterior Emulsion is specifically engineered to withstand varying weather conditions, particularly in regions with frequent rain and moderate humidity. With strong adhesion and UV-resistant properties, it protects exterior walls against algae growth and black spots while maintaining an elegant matte appearance.
Adding to its comprehensive range, Walplast introduces the HomeSure MasterTouch Prime Interior and Exterior Primers, offering superior adhesion, excellent whiteness, and long-lasting durability. These primers enhance the topcoat application, ensuring a flawless, smooth finish for both interior and exterior surfaces. Engineered with excellent workability and eco-friendly attributes, the primers are free from heavy metals, low VOC (Volatile Organic Compounds), and protect against algae and fungus, making them a reliable base for any painting project.
“At Walplast, we are committed to providing innovative and accessible solutions that enhance the beauty and longevity of homes. The HomeSure MasterTouch range is designed with the modern homeowner in mind—delivering affordability without compromising on quality. Our focus is to empower individuals to bring their dream homes to life with reliable and superior products,” said Kaushal Mehta, Managing Director of Walplast.
Aniruddha Sinha, Senior Vice President Marketing, CSR, and Business Head – P2P Division, Walplast added, “The HomeSure MasterTouch Lush and Prime range align with our vision of offering peace of mind to customers with durable, aesthetic, and affordable solutions for every home. The “Elevate your lifestyle” reflects our belief that everyone deserves to live in a home they take pride in. With this launch, we continue our mission of enabling dreams of beautiful homes for all.”
The newly launched products will be available across key markets, including Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Chhattisgarh. The HomeSure MasterTouch portfolio also includes premium emulsions such as Bloom and Vivid, as well as a premium primer, catering to diverse customer needs in the construction and home improvement sectors.
Walplast’s HomeSure portfolio encompasses a comprehensive range of construction solutions, including Wall Putty, Tile Adhesives, Gypsum-based products, Construction Chemicals, AAC blocks, and more. With a robust network of over 800 active distributors, 6000 dealers, and more than 65,000 influencers, the HomeSure division continues to be the preferred choice in the construction ecosystem, reinforcing Walplast’s position as an industry leader.

Carbon Capture, Utilisation, and Storage (CCUS) is crucial for reducing emissions in the cement industry. Kanika Mathur explores how despite the challenges such as high costs and infrastructure limitations, CCUS offers a promising pathway to achieve net-zero emissions and supports the industry’s sustainability goals.
The cement industry is one of the largest contributors to global CO2 emissions, accounting for approximately seven to eight per cent of total anthropogenic carbon dioxide released into the atmosphere. As the world moves towards stringent decarbonisation goals, the cement sector faces mounting pressure to adopt sustainable solutions that minimise its carbon footprint. Among the various strategies being explored, Carbon Capture, Utilisation, and Storage (CCUS) has emerged as one of the most promising approaches to mitigating emissions while maintaining production efficiency. This article delves into the challenges, opportunities, and strategic considerations surrounding CCUS
in the cement industry and its role in achieving net-zero emissions.
Understanding CCUS and Its Relevance to Cement Manufacturing
Carbon Capture, Utilisation, and Storage (CCUS) is an advanced technological process designed to capture carbon dioxide emissions from industrial sources before they are released into the atmosphere. The captured CO2 can then be either utilised in various applications or permanently stored underground to prevent its contribution to climate change.
Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability, Wonder Cement says, “CCUS is indispensable for achieving Net Zero emissions in the cement industry. Even with 100 per cent electrification of kilns and renewable energy utilisation, CO2 emissions from limestone calcination—a key raw material—remain unavoidable. The cement industry is a major contributor to
GHG emissions, making CCUS critical for sustainability. Integrating CCUS into plant operations ensures significant reductions in carbon emissions, supporting the industry’s Net Zero goals. This transformative technology will also play a vital role in combating climate change and aligning with global sustainability standards.”
The relevance of CCUS in cement manufacturing stems from the inherent emissions produced during the calcination of limestone, a process that accounts for nearly 60 per cent of total CO2 emissions in cement plants. Unlike other industries where CO2 emissions result primarily from fuel combustion, cement production generates a significant portion of its emissions as an unavoidable byproduct. This makes CCUS a particularly attractive solution for the sector, as it offers a pathway to drastically cut emissions without requiring a complete overhaul of existing production processes.
According to a Niti Ayog report from 2022, the adverse climatic effects of a rise in GHG emissions and global temperatures rises are well established and proven, and India too has not been spared from adverse climatic events. As a signatory of the Paris Agreement 2015, India has committed to reducing emissions by 50 per cent by the year 2050 and reaching net zero by 2070. Given the sectoral composition and sources of CO2 emissions in India, CCUS will have an important and integral role to play in ensuring India meets its stated climate goals, through the deep decarbonisation of energy and CO2 emission intensive industries such as thermal power generation, steel, cement, oil & gas refining, and petrochemicals. CCUS can enable the production of clean products while utilising our rich endowments of coal, reducing imports and thus leading to an Indian economy. CCUS also has an important role to play in enabling sunrise sectors such as coal gasification and the nascent hydrogen economy in India.
The report also states that India’s current cement production capacity is about 550 mtpa, implying capacity utilisation of about 50 per cent only. While India accounts for 8 per cent of global cement capacity, India’s per capita cement consumption is only 235 kg, and significantly low compared to the world average of 500 kg per capita, and China’s per capita consumption of around 1700 kg per capita. It is expected that domestic demand, capacity utilisation and per capita cement consumption will increase in the next decade, driven by robust demand from rapid industrialisation and urbanisation, as well as the Central Government’s continued focus on highway expansions, investment in smart cities, Pradhan Mantri Awas Yojana (PMAY), as well as several state-level schemes.
Key Challenges in Integrating CCUS in Cement Plants Spatial Constraints and Infrastructure Limitations
One of the biggest challenges in integrating CCUS into existing cement manufacturing facilities is space availability. Most cement plants were designed decades ago without any consideration for carbon capture systems, making retrofitting a complex and costly endeavour. Many facilities are already operating at full capacity with limited available space, and incorporating additional carbon capture equipment requires significant modifications.
“The biggest challenge we come across repeatedly is that most cement manufacturing facilities were built decades ago without any consideration for carbon capture systems. Consequently, one of the primary hurdles is the spatial constraints at these sites. Cement plants often have limited space, and retrofitting them to integrate carbon capture systems can be very challenging. Beyond spatial issues, there are additional considerations such as access and infrastructure modifications, which further complicate the integration process. Spatial constraints, however, remain at the forefront of the challenges we encounter” says Nathan Ashcroft, Carbon Director, Stantec.
High Capital and Operational Costs CCUS technologies are still in the early stages of large-scale deployment, and the costs associated with implementation remain a significant barrier. Capturing, transporting, and storing CO2 requires substantial capital investment and increases operational expenses. Many cement manufacturers, especially in developing economies, struggle to justify these costs without clear financial incentives or government support.
Regulatory and Policy Hurdles The regulatory landscape for CCUS varies from region to region, and in many cases, clear guidelines and incentives for deployment are lacking. Establishing a robust framework for CO2 storage and transport infrastructure is crucial for widespread CCUS adoption, but many countries are still in the process of developing these policies.
Waste Heat Recovery and Energy Optimisation in CCUS Implementation
CCUS technologies require significant energy inputs, primarily for CO2 capture and compression. One way to offset these energy demands is through the integration of waste heat recovery (WHR) systems. Cement plants operate at high temperatures, and excess heat can be captured and converted into usable energy, thereby reducing the additional power required for CCUS. By effectively utilizing waste heat, cement manufacturers can lower the overall cost of carbon capture and improve the economic feasibility of CCUS projects.
Another critical factor in optimising CCUS efficiency is pre-treatment of flue gases. Before CO2 can be captured, flue gas streams must be purified and cleaned to remove particulates and impurities. This additional processing can lead to better capture efficiency and lower operational costs, ensuring that cement plants can maximise the benefits of CCUS.
Opportunities for Utilising Captured CO2 in the Cement Sector
While storage remains the most common method of handling captured CO2, the utilising aspect presents an exciting opportunity for the cement industry. Some of the most promising applications include:
Carbonation in Concrete Production
CO2 can be injected into fresh concrete during mixing, where it reacts with calcium compounds to form solid carbonates. This process not only locks away CO2 permanently but also enhances the compressive strength of concrete, reducing the need for additional cement.
Enhanced Oil Recovery (EOR) and Industrial Applications
Captured CO2 can be used in enhanced oil recovery (EOR), where it is injected into underground oil reservoirs to improve extraction efficiency. Additionally, certain industrial processes, such as urea production and synthetic fuel manufacturing, can use CO2 as a raw material, creating economic opportunities for cement producers.
Developing Industrial Hubs for CO2 Utilisation
By co-locating cement plants with other industrial facilities that require CO2, manufacturers can create synergies that make CCUS more economically viable. Industrial hubs that facilitate CO2 trading and re-use across multiple sectors can help cement producers monetise their captured carbon, improving the financial feasibility of CCUS projects.
Strategic Considerations for Large-Scale CCUS Adoption Early-Stage Planning and Feasibility Assessments
Cement manufacturers looking to integrate CCUS should begin with comprehensive feasibility studies to assess site-specific constraints, potential CO2 storage locations, and infrastructure requirements. A phased implementation strategy, starting with pilot projects before full-scale deployment, can help mitigate risks and optimise
system performance.
Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba says, “Carbon Capture, Utilisation and Storage (CCUS) has emerged as a transformative technology that holds the potential to revolutionise cement manufacturing by addressing its carbon footprint while supporting global sustainability goals. CCUS has the potential to be a game-changer for the cement industry, which accounts for about seven to eight per cent of global CO2 emissions. It addresses one of the sector’s most significant challenges—emissions from clinker production. By capturing CO2 at the source and either storing it or repurposing it into value-added products, CCUS not only reduces
the carbon footprint but also creates new economic opportunities.”
Government Incentives and Policy Support
For CCUS to achieve widespread adoption, governments must play a crucial role in providing financial incentives, tax credits, and regulatory frameworks that support carbon capture initiatives. Policies such as carbon pricing, emission reduction credits, and direct subsidies for CCUS infrastructure can make these projects more economically viable for cement manufacturers.
Neeti Mahajan, Consultant, E&Y India says, “With new regulatory requirements coming in, like SEBI’s Business Responsibility and Sustainability Reporting for the top 1000 listed companies, value chain disclosures for the top 250 listed companies, and global frameworks to reduce emissions from the cement industry – this can send stakeholders into a state of uncertainty and unnecessary panic leading to a semi-market disruption. To avoid this, communication on technologies like carbon capture utilisation and storage (CCUS), and other innovative tech technologies which will pave the way for the cement industry, is essential. Annual reports, sustainability reports, the BRSR disclosure, and other broad forms of communication in the public domain, apart from continuous stakeholder engagement internally to a company, can go a long way in redefining a rather traditional industry.”
The Role of Global Collaborations in Scaling CCUS
International collaborations will be essential in driving CCUS adoption at scale. Countries that have made significant progress in CCUS, such as Canada, Norway, and the U.S., offer valuable insights and technological expertise that can benefit emerging markets. Establishing partnerships between governments, industry players, and research institutions can help accelerate technological advancements and facilitate knowledge transfer.
Raj Bagri, CEO, Kapture, says “The cement industry can leverage CCUS to capture process and fuel emissions and by using byproducts to replace existing carbon intensive products like aggregate filler or Portland Cement.”
Organisations like the Carbon Capture Knowledge Centre in Saskatchewan provide training programs and workshops that can assist cement manufacturers in understanding CCUS implementation. Additionally, global symposiums and industry conferences provide platforms for stakeholders to exchange ideas and explore collaborative opportunities.
According to a Statista report from September 2024, Carbon capture and storage (CCS) is seen by many experts as a vital tool in combating climate change. CCS technologies are considered especially important for hard-to-abate industries that cannot be easily replaced by electrification, such as oil and gas, iron and steel, and cement and refining. However, CCS is still very much in its infancy, capturing just 0.1 per cent of global CO2 emissions per year. The industry now faces enormous challenges to reach the one billion metric tons needing to be captured and stored by 2030 and live up to the hype.
The capture capacity of operational CCS facilities worldwide increased from 28 MtCO2 per year in 2014 to around 50 MtCO2 in 2024. Meanwhile, the capacity of CCS facilities under development or in construction has risen to more than 300 MtCO2 per year. As of 2024, the United States had the largest number of CCS projects in the pipeline, by far, with 231 across various stages of development, 17 of which were operational. The recent expansion of CCS has been driven by developments in global policies and regulations – notably the U.S.’ Inflation Reduction Act (IRA) – that have made the technology more attractive to investors. This has seen global investment in CCS more than quadruple since 2020, to roughly $ 11 billion in 2023.
The Future of CCUS in the Cement Industry
As technology advances and costs continue to decline, CCUS is expected to play a crucial role in the cement industry’s decarbonisation efforts. Innovations such as cryogenic carbon capture and direct air capture (DAC) are emerging as promising alternatives to traditional amine-based systems. These advancements could further enhance the feasibility and efficiency of CCUS in cement manufacturing.
In conclusion, while challenges remain, the integration of CCUS in the cement industry is no longer a question of “if” but “when.” With the right mix of technological innovation, strategic planning, and policy support, CCUS can help the cement sector achieve net zero emissions while maintaining its role as a vital component of global infrastructure development.

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