Dr BN Mohapatra, Director General, National Council for Cement and Building Materials (NCCBM), expounds on the importance of carbon capture, utilisation and storage for achieving net zero goals for the industry.
Dr BN Mohapatra, Director General, National Council for Cement and Building Materials (NCCBM), expounds on the importance of carbon capture, utilisation and storage for achieving net zero goals for the industry.
Honourable Prime Minister of India Shri Narendra Modi has made the pledge to cut the CO2 emissions in the COP 26 summit at Glasgow in November. The new climate action targets ‘Panchamrit’ by India included:
a net zero target for India by the year 2070;
installing non-fossil fuel electricity capacity of 500 GW by 2030;
sourcing 50 per cent of energy requirement from renewables by 2030;
reducing 1 billion tonnes of projected emissions from now till 2030; and
achieving carbon intensity reduction of 45 per cent over 2005 levels by 2030.
Globally, the cement sector generates about 7 per cent of the total anthropogenic emissions. The sources of CO2 emissions in cement manufacture are categorised as direct sources, which includes calcination (55 per cent to 60 per cent) and combustion (25 per cent to 30 per cent) and indirect sources of CO2 including electricity (8 per cent to 10 per cent) and transportation (2 per cent to 5 per cent). In hard-to-abate sectors like cement, it is technologically very difficult to reduce the process related CO2 emissions. The Indian cement industry has been working on the issue of its GHG emissions and has brought down the CO2 emission factor from 1.12 t of CO2/t of cement in 1996 to 0.670 t of CO2/t of cement in 2017. In October 2021, Global Cement and Concrete Association (GCCA) published a Cement and Concrete Roadmap 2050 for the Net Zero Concrete. The leading cement and concrete companies in India including major cement companies in India like UltraTech Cement Ltd., Holcim Group, Shree Cement Ltd., Dalmia Cement (B) Ltd., JK Cement Ltd., JSW Cement, Orient Cement Ltd. have accepted the goal to achieve Net Zero Concrete by 2050 and committed to fully contribute to building the sustainable world of tomorrow. Dalmia Cement (Bharat) Ltd., the fourth largest cement company in India has committed to become Carbon Negative by 2040 and working on its roadmap to use 100 per cent biomass and capturing the biogenic CO2 emissions. The journey towards decarbonisation of Indian cement industry started in 2012 with preparation of a Low Carbon Technology Roadmap specifically for the Indian cement industry, when International Energy Agency (IEA) and Cement Sustainability Initiative (CSI), in collaboration with the Confederation of Indian Industry (CII) and the National Council for Cement and Building Materials (NCB) prepared this document. The identified levers in the low carbon technology roadmap of Indian cement industry are: i. Substitution of Clinker, ii. Alternate Fuel and Raw Materials, iii. Improving Energy Efficiency, iv. Installation of Waste Heat Recovery and v. Newer technologies like Renewable Energy, Novel Cements, Carbon Capture and Storage/Utilisation. The first four levers have already been implemented by the Indian cement industry and the impact has already been reflected in the reduction of CO2 emission factor from cement industry. The specific direct CO2 emissions of major cement companies in the year 2020-21 is given in table below:
(Source: Sustainability Reports and Annual Reports)
One of the important challenges for decarbonisation of the cement industry worldwide is to reduce the process emissions arising out of calcination of limestone. Therefore, to achieve the target of Net Zero cement industry, implementation of Carbon Capture and Utilisation is required. Carbon Capture and Utilisation (CCU) or Carbon Capture and Storage (CCS) is the process of separating Carbon Dioxide (CO2) from flue gases of point sources such as stacks of cement plants, power plants etc., transporting it to a storage site or utilisation site, and depositing it or utilising it, thereby not letting CO2 enter the atmosphere for mitigation of global warming. The first stage of CCU is CO2 capture i.e., separating CO2 from the flue gases coming out of the stacks of cement kilns. A typical composition of flue gas from stacks of cement plants contains 18 per cent CO2, 10 per cent O2, 71.9 per cent N2 and 0.1 per cent Other gases. In the carbon capture process, the CO2 is separated as concentrated CO2 for storage and transportation and remaining CO2 free flue gases are emitted to the atmosphere as shown in figure 2. Carbon capture techniques can be classified in three categories:
Post-combustion processes
Pre-combustion process
Oxy-fuel combustion process
Post-combustion carbon capture process involves extracting CO2 from the flue gas after combustion of fossil fuels. Out of the three capture techniques, post-combustion is well established and commercially available. The advantage of this technique is that it does not interfere with the plant process. The various methods of post-combustion carbon capture are:
Chemical absorption: Monoethanolamine (MEA)
Calcium looping
Chilled ammonia process
Solvent Based absorption
Oxy-fuel combustion involves supply of complete Oxygen to replace Air. Burner, calciner and clinker cooler have been successfully tested under oxyfuel conditions, and the technology is being brought forward. Also, thyssenkrupp has demonstrated a pilot scale oxyfuel retrofit and greenfield cement kilns. Pre-combustion involves converting coal to hydrogen through gasification. This hydrogen is derived from fossil fuel and called Grey Hydrogen. A cement kiln at the British Ribblesdale plant, UK, by HeidelbergCement successfully tested use of Grey Hydrogen in its main burner. Several institutes and start-ups worldwide are working to find cost effective energy efficient ways to capture CO2 from flue gases. The status of carbon capture technologies all over the world is shown in table 2.
After capturing, the CO2 is transported to the utilisation/storage site. There are several utilisation pathways of captured CO2 like mineralisation, production of chemicals like urea, methanol, methane etc., as refrigerant, as inerting agent, for fire suppression, for enhanced fuel recovery, in production of plastics, for biological conversion to algae, for use in food products like beverages etc. as shown in Fig 3.
Dalmia Cement (B) Ltd. in association with Asian Development Bank has carried out a Pre-feasibility study to assess the techno-economic pre-feasibility of the CCUS options in its Ariyalur cement plant. The study found urea and mineralization as the top-ranking options for CO2 utilisation but dropped Mineral carbonation as the CO2 derived cement will require longer time for technical approval. Urea production was selected as the best option for utilisation. Similar type of study at industry level is required to assess the potential utilisation when the carbon capture will be implemented in all cement plants. Other than utilisation of captured CO2, the long-term storage of CO2 in deep subsurface rock formations is the option which will not be financially viable.
LeadIT initiative For promoting low-carbon transition especially in the hard-to-abate sectors like Iron & Steel, Aluminium, Cement and Concrete, petrochemicals, fertilisers, bricks, heavy-duty transport, etc. through active participation of private sector companies, Government of Sweden and India launched an initiative ‘Leadership for Industry Transition (LeadIT)’ at the UN Climate Action Summit in New York in 2019. Stockholm Environment Institute hosts the Secretariat of LeadIT. Under the LeadIT initiative, preparation of the sectoral roadmap for the cement and steel sector in India has been undertaken.
In May 2022, DG-NCCBM as part of Indian Delegation to Sweden visited Heidelberg Cement Ltd.’s Slite Cement Plant at Gotland, Sweden and SSAB Steel Plant and the pilot plant of the HYBRIT Project at Lulea, Sweden Under LeadIT initiative as shown in Fig 4 and 5. The Slite cement plant is Sweden’s largest cement factory with a production capacity of 2.5 million tonnes per year and is currently the second-largest source of greenhouse gas emissions in Sweden, responsible for three per cent of all its CO2 emissions. HeidelbergCement is upgrading its Slite Cement plant to develop it into World’s first ‘Carbon-Neutral Cement Plant’, and it will be having facility to capture up to 1.8 million tonnes of CO2 annually, which corresponds to the plant’s 100 per cent CO2 emissions and store the same in an underground long storage facility. The pre-feasibility study for a Carbon Capture and Storage (CCS) facility at the Slite Cement Plant has been completed recently and got promising results, which were presented during the visit. In the pre-feasibility study, amine capture was found to be the most suitable technology for Post-combustion Carbon Capture. It was informed that the implementation of the carbon capture facility will require some modification to the plant. As capturing CO2 is an energy intensive process, the power demand of the Slite Cement Plant is also expected to rise significantly. The pre-feasibility study has identified Geological sequestration, which involves the process of storing carbon dioxide by injecting the captured CO2 from a cement plant into deep subsurface rock formations for long-term storage. To store the captured CO2 from the Slite cement plant, the carbon dioxide will be buried under the North Sea in cavities created by the extraction of fossil fuels. HYBRIT is a partnership between LKAB (Europe’s largest iron ore producer), Vattenfall (one of Europe’s largest energy companies) and SSAB (steel producer) formed to develop hydrogen-based production of fossil free sponge iron production, in order to reduce the negative climate effects of steel production. Using HYBRIT technology, SSAB aims to replace coking coal, traditionally needed for ore-based steelmaking, with fossil-free electricity and hydrogen, resulting in the world›s first fossil-free steelmaking technology. The pilot plant using fossil-free hydrogen at the SSAB site in Luleå, Sweden started in 2020. This facility demonstrates the feasibility and scalability of the new technology replacing coal by hydrogen in the steel production process and aims to produce 1.3 million tonnes of steel by the year 2026. The slite cement carbon capture plant is targeted to start full scale operation by 2030 to capture the plant’s 100 per cent CO2 emissions. The plant officials informed the visiting delegation that a 400,000t/yr CCS system is being built by Norcem, a subsidiary of Heidelberg Cement, at its Brevik cement plant in Norway. The CSS facility at Brevik is presently under construction and will start operating by 2024. The Slite cement plant will have four times the capacity of that at the Brevik plant. Additionally, the use of bio-based fuels in the cement production at Slite will be increased. For implementation of CCU in the Indian cement industry, such demonstration projects need to be implemented in a few plants, which will help in creating expertise in the cement industry to run CCU facilities and will also encourage other cement companies to move in this direction. There is a need to assess the impact due to implementation of CCU in all the integrated plants in terms of increase in cost of product due to high capture cost, avenues for utilisation of captured CO2, integration in existing plants and funding required for implementation at plant level.
About the author: Dr BN Mohapatra is the Director General of National Council for Cement and Building Materials (NCCBM). He is a PhD in Cement Mineral Chemistry and the chairman of the Cement Sectoral Committee of the Bureau of Energy Efficiency (BEE). He is also a member of various technical committees of Bureau of Indian Standards (BIS), member of Research Committee of CSIR-National Physical Laboratory (NPL) and member of Research Advisory Committee of DISIR and AKS University.
UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.
The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.
As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.
UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.
The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.
In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.
Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.
Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.
He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.
The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.
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.