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CCUS capacity needs to be ramped up 190-fold

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Carbon capture is the imperative action that the cement industry needs to take in order to honour its pledge for a net zero future. Aniruddha Sharma, CEO, Carbon Clean, speaks about carbon capture, utilisation and storage (CCUS) entails across the globe and its role in the green evolution of the cement industry.

Carbon Clean, headquartered in London, provides all the services needed by companies to achieve net zero carbon footprint, including technology licence and end-to-end systems. Their solutions help industries capture over 90 per cent of CO2 emissions, and be a part of the global circular carbon economy. Its CCUS applications are designed for verticals such as cement, steel, refinery, bio gas and energy from waste. In this interaction, Aniruddha Sharma, CEO, Carbon Clean, speaks to ICR about the importance of CCUS.

What are the current estimates for CCUS worldwide?
To achieve net zero emissions by 2050, CCUS capacity needs to be ramped up 190-fold and urgent steps are needed to ensure CCUS is available to contribute to net zero goals, according to the International Energy Agency.
This presents a challenge but also an opportunity. Demand for CCUS solutions is unprecedented, especially from the hard-to-abate industries such as oil and gas, cement, steel and chemicals. These sectors expect over 20 per cent of their total emissions to be captured via carbon capture technology by 2030. Our latest CCUS solution, CycloneCC, will play an important role in servicing this demand, with independent third-party research suggesting that the technology’s market opportunity is set to expand by 60 per cent per year this decade.

What role does Carbon Clean play in helping cement companies with carbon capture?
Carbon Clean is a global leader in cost-effective industrial carbon capture technologies and services. We are working with several cement companies to capture the carbon dioxide from their emissions.
For example, we are partnering with CEMEX on a ground-breaking carbon capture project at its Rüdersdorf plant in Germany. The initial aim is to capture 100 tonnes of CO2 per day at the plant, combining it with hydrogen from renewable sources to produce greener synthetic hydrocarbons that can be used in other industries. We are also currently commissioning a 10 tonnes per day carbon capture plant with Taiheiyo Cement Corporation in Japan.
Meanwhile, in Spain, we are demonstrating how carbon capture can provide cement companies with a new revenue stream as part of the circular carbon economy. Our project with LafargeHolcim Spain will take carbon captured from the Carboneras cement factory and use it in greenhouses in the region to improve crop productivity.
Our latest modular industrial carbon capture technology – CycloneCC – is set to offer huge benefits to the cement industry. Some of the biggest barriers to widespread carbon capture adoption have been the size and cost of existing technology. CycloneCC uses equipment that is up to ten times smaller than conventional solutions, reducing capex and opex by up to 50 per cent.

What is your outlook on the net zero commitment pledged by cement companies, targeted at 2030?
The cement sector is a big emitter, accountable for around 8 per cent of global CO2 emissions, but carbon capture will play a significant role in ensuring the sector decarbonises and achieves its ambitious targets. The solutions are already available – it’s now time to act.

How can cement manufacturers effectively reduce carbon emissions and work on CCUS for long term impact?
Carbon capture is vital for the decarbonisation of cement manufacturing. Up to 70 per cent of CO2 emissions come from the calcining calcium carbonate chemical process, which can’t be reduced with other methods. Industrial carbon capture solutions must be deployed in the near term to start many manufacturers on the path to net zero.

What advice would you like to give to companies, especially Indian ones, regarding KPIs for carbon capture?
There is huge interest in carbon capture solutions from the cement industry. Today, historical barriers to adoption like cost and onsite space are being overcome by advances in carbon capture technology.
Carbon Clean’s latest modular technology, for example, uses equipment that is ten times smaller than conventional carbon capture solutions and has a five times smaller onsite footprint. It is prefabricated, deployable in less than eight weeks, and can be scaled over time to suit a company’s decarbonisation trajectory. This breakthrough solution reduces capex and opex by up to 50 per cent compared to conventional carbon capture, driving down the
cost of carbon capture to $30/tonne on average. At this cost, the economic case for carbon capture becomes undeniable.
We are working with cement companies across the globe to demonstrate the potential for carbon capture to meet decarbonisation targets.
The solutions today are accessible, affordable and already in use.

Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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