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Towards an expanding horizon

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The Indian cement industry, among the world’s largest, plays a pivotal role in national infrastructure and economic growth. Driven by robust demand, it continues to expand. ICR delves into the mergers and acquisitions currently underway with major cement players, in a bid to lead capacity expansion.

The Indian cement industry is one of the largest in the world, playing a crucial role in the nation’s infrastructure and economic development. Over the past few years, production has steadily increased, driven by robust demand from both urban and rural areas. Major infrastructure projects, housing developments, and government initiatives like ‘Housing for All’ and ‘Smart Cities’ have significantly boosted cement consumption.

The industry is characterised by a diverse range of players, from large multinational corporations to small local manufacturers, all contributing to a highly competitive market. Consumption trends indicate a strong preference for blended cements due to their environmental benefits and cost-effectiveness.

As the economy continues to grow, the demand for cement is expected to rise, supported by ongoing infrastructure development and urbanisation. This upward trajectory positions the Indian cement industry as a key driver of growth in the construction sector, with a focus on sustainable and innovative practices to meet future challenges.
According to the Infomerics Ratings report dated March 2023, the size of the global cement market reached US$ 363.4 billion in 2022, and it is expected to grow at a CAGR of 5.4 per cent during 2023 – 2028 to reach US$ 498.23 billion by 2028. The cement industry was expected to add 21.2 million tonnes per annum (mtpa) of manufacturing capacity in the year 2022-23. During the period, projects worth US$ 71.8 billion were expected to get commissioned. This would have been the fourth successive year, wherein the industry added more than 20 mtpa of manufacturing capacity. Between 2019-20 and 2021-22, the industry added a total of 81.1 mtpa of manufacturing capacity. The capacity utilisation of cement industries decreased from 66.2 per cent in 2018-19 to 60.3 per cent in 2021-22. There was contraction in demand and production during the pandemic.

India’s commitment to development
Infrastructure development in India is a major driver of cement demand. The government’s focus on initiatives like ‘Bharatmala’ and ‘Sagarmala’ for road and port development, along with rapid expansion in railways and airports, has significantly boosted the cement industry. Policies such as the ‘Pradhan Mantri Awas Yojana’ aim to provide affordable housing, further increasing cement consumption.
Urbanisation is accelerating in India, leading to a surge in real estate development. With a growing middle class and rising urban populations, demand for residential and commercial spaces is expanding rapidly. This urban growth is a key factor driving cement consumption, as cities expand and modernise their infrastructure to accommodate new residents and businesses.
According to Invest India, the government has committed an allocation of 3.3 per cent of GDP to the infrastructure sector in the fiscal year 2024, with particular focus on the transport and logistics segments. Roads and Highways account for the highest share, followed by Railways and Urban Public Transport. The government has set ambitious targets for the transport sector, including development of a 2 lakh-km national highway network by 2025 and expanding airports to 220. Additionally, plans include operationalising 23 waterways by 2030 and developing 35 Multi-Modal Logistics Parks (MMLPs). The total budgetary outlay for infrastructure-related ministries increased from around Rs.3.7 lakh cr in FY23 to Rs.5 lakh cr in FY24, offering investment prospects for the private sector across various transport sub-segments.
India’s cement industry also has strong export potential, with several manufacturers targeting international markets in Asia, Africa and the Middle East. The competitive pricing and quality of Indian cement make it attractive globally, contributing to increased export volumes. As global construction activities pick up, particularly in developing regions, Indian cement manufacturers are well-positioned to meet international demand, further supporting industry growth.

Anticipated growth spurt
Indian cement manufacturers are actively expanding their production capacities to meet growing domestic and international demand. Major players like UltraTech Cement, Adani Group and Shree Cement have announced significant investment plans to increase their manufacturing capabilities. This expansion is driven by factors such as robust infrastructure development, government initiatives, and rising urbanisation.
These companies are strategically enhancing capacity through both greenfield and brownfield projects, focusing on regions with high demand and logistical advantages. Innovations in technology and sustainability are also key priorities, as manufacturers aim to reduce environmental impact while increasing efficiency. This wave of capacity expansion positions the Indian cement industry to cater to future demand surges, maintaining its competitive edge in both domestic and global markets.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian cement industry had an installed cement capacity of 600 million tonnes and production of 391 million tonnes of cement in 2022-23. The Crisil Market Intelligence report mentions that to cash in on rising demand from infrastructure and housing sectors, the cement industry is on course to add capacity by 150-160 million tonnes from FY25 to FY28. It also states that the industry has added capacity by 119 million tonnes (MT) per annum to reach a total of 595 MT.
The Indian cement industry is witnessing two major acquisitions in the current times. UltraTech, India’s largest cement player owned by the Aditya Birla Group, has announced that its board has approved picking up a 23 per cent non-controlling stake in India Cements in a deal valued at around Rs.1,885 crore.
While the conglomerate Adani Group has grown its capacity from almost nothing to a total of 75 mtpa in three years, positioning itself as the second-largest player in the industry. The latest growth move is the buyout of Hyderabad-based Penna Cement Industries for Rs.10,420 crore. Currently, Penna Cement has a total capacity of 10 mtpa and another 4 mtpa is under construction. Once the deal is closed, the total capacity of the Adani Group’s cement business will expand to 85 mtpa. The group aims to achieve a production capacity of 140 mtpa by 2028, while market leader UltraTech Cement has set its sights on reaching a capacity of 200 mtpa.
“This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey,” said Ajay Kapur, CEO and Whole Time Director, Ambuja Cements. “By acquiring PCIL, Ambuja is poised to expand its market presence in south India and reinforce its position as a pan-India leader in the cement industry. PCIL’s strategic location and sufficient limestone reserves provide an opportunity to increase cement capacity through debottlenecking and additional investment. Importantly, the bulk cement terminals (BCTs) will prove to be a gamechanger by giving access to the eastern and southern parts of peninsular India, apart from an entry to Sri Lanka, through the sea route. Our aim is to make PCIL highly competitive on cost and productivity and improve its operating performance.”
Other cement organisations in India also have major manufacturing capacity expansion plans. Shree Cement in February 2024 announced plans for capacity development in Uttar Pradesh (UP) which outlines the development of two cement factories: one in Etah and another in Prayagraj. Both projects are expected to cost approximately `2,000 crore and increase UP’s capacity to produce cement by almost 7 mtpa over the course of the following 24 months. One of Shree Cement’s current projects is a 3.5 mtpa facility in Etah, which is expected to start up in the upcoming year. Prayagraj is planning another 3.5 mtpa facility at the same time. Nearly 17 acres of land in Etah have already been purchased by Shree Cement, and building is under construction.
“New investments made in cement production facilities automatically come with the latest technological advancements that can enhance efficiency, minimise environmental impacts, and improve the quality of cement. This leads to construction practices that are more durable and sustainable. JSW, for instance, has initiated research on the integration of supplementary cementitious materials (SCMs) like fly ash, slag, calcined clay and more. These materials not only improve the durability and strength of cement but also contribute towards reduction of carbon footprint of the cement industry. In order to meet energy demands sustainably, we must look at better industry practices such as usage of waste heat recovery systems, high-efficiency coolers and preheaters, and transition towards clean energy sources like solar or wind power,” states Jigyasa Kishore, Vice President – Enterprise Sales and Solutions, Moglix.
JK Cement in June 2024 announced the commissioning of a new grinding unit at its Prayagraj plant in Uttar Pradesh. The Prayagraj plant is a 2 mtpa clinker grinding unit project, which will increase the overall capacity of the organisation from the present 22 to 24 mtpa. This strategic move allows the company to efficiently cater to the burgeoning demand for cement across east Uttar Pradesh.
Dr Raghavpat Singhania, Managing Director, JK Cement, said, “We are thrilled to launch the new grinding unit at Prayagraj, which marks a significant milestone in our expansion strategy. As India accelerates its infrastructure development to sustain robust economic growth, we are continually scaling our capacities to cater to escalating demands from the infrastructure, housing and construction sectors. Our commitment to quality, innovation, and contributing to socio-economic development remains unwavering. We anticipate that these endeavours will not only foster our growth but also actively contribute to the overall development of the region and the nation.”
Dalmia Bharat’s cement manufacturing capacity as of May 2024 stood at 45.6 million tonnes. In the coming year, they plan to add 2.4 million tonnes in Assam and 0.5 million tonnes in Bihar. They are also in the process of acquiring cement assets from Jaiprakash Associates, which will add 9.4 million tonnes to their capacity and mark their entry into the Central region. They are currently focusing on completing ongoing projects and integrating assets like Jaypee Cement. Recently, they invested
`240 crore to expand their plant in Ariyalur, Tamil Nadu, and will add another million tonnes in Kadapa.
Commenting on the company’s expansion plans, Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, said, “We continue to focus on strategic capital expenditure, maximising on the region and growth prospects and further enhancing our market position in the South. Driven by robust infrastructure development, housing and investments, we anticipate cement demand to rise. This increased capacity will facilitate the growing demand in the Southern region.”
Manufacturers are targeting specific regions that offer strategic advantages, such as proximity to raw materials, growing markets, and improved infrastructure connectivity. This regional focus helps in tapping into localised demand and reducing logistical complexities.
Kiran Patil, Managing Director, Wonder Cement, says, “We aim to increase our capacity within the next five years by establishing new plants in strategic locations across the region. These plans align well with the government’s industrial and infrastructure policies, such as the National Infrastructure Pipeline (NIP) and the push for affordable housing. These initiatives are driving demand for construction materials, and we are committed to supporting
these efforts by ensuring a steady supply of high-quality cement.”
“At Wonder Cement, we are committed to significantly expanding our production capacity to meet the growing demands of the Indian market and to contribute to the nation’s infrastructure development. Our expansion strategy is carefully aligned with the government’s industrial and infrastructure policies to ensure that our growth supports national priorities,” he adds.
The capacity expansions are set to increase the competitiveness of the Indian cement industry, with enhanced supply chains and improved market reach. This growth not only meets domestic needs but also strengthens the potential for exports, as Indian cement becomes more competitive in terms of quality and pricing on the global stage.
Overall, the expansion of manufacturing capacity by Indian cement organisations is a critical response to the dynamic market conditions, ensuring that the industry is well-prepared to support India’s developmental aspirations and maintain its competitive positioning internationally.

Rise in cement exports
India’s cement industry gained momentum with the government’s big infrastructure push for development projects. Amid global uncertainties caused by the recessionary situation in the US and EU economies, the global demand for cement has been subdued, and accordingly the cement export from India significantly decreased in half of a decade.
As per Directorate General of Commercial Intelligence and Statistics (DGCI&S), India exports Portland cement, aluminous cement, slag cement, super sulphate cement and hydraulics cements to other countries. India exports most of its concrete cement to Bangladesh, Sri Lanka and the UAE. Currently, India comes after Spain, Germany, Italy and China in the list of global cement exporters.
According to a report by SeAir Exim Solutions, India’s cement exports declined from 33,73,000 metric tonnes in 2015-16 to 11,66,000 metric tonnes in 2021-22. Cement shipments have significantly decreased in recent years. Overall, India’s cement export future depends on balancing domestic demand, global economic conditions and the industry’s ability to seize growth prospects.

The current Indian cement export scenario (2023-24) is as follows:

Cement Export Data Details
Total cement export from India 211K
Global Rank 1
Cement exporters in India 6498
Number of Indian buyers 16,150

The Infomerics Ratings report states that the cement import by India also significantly declined from 17,69,000 tonnes in 2017-18 to 7,52,000 tonnes in 2019-20 due to the pandemic. With the recovery in domestic demand, imports by India gained traction from 7,52,000 tonnes in 2019-20 to 8,16,000 tonnes in 2021-22. In 2021-22, India imported cement largely from UAE (395.1 thousand tonnes), Bangladesh (130.7 thousand tonnes), Bhutan (196.4 thousand tonnes) and Oman (41.2 thousand tonnes).

Risks and challenges
Expanding cement manufacturing capacities in India presents several risks and challenges:

  • Regulatory and environmental compliance: Navigating stringent environmental regulations can be complex and costly. Manufacturers must ensure compliance with pollution control norms, which can delay projects and increase operational costs.
  • Raw material availability: Securing consistent and cost-effective supplies of limestone and other raw materials is crucial. Fluctuations in availability or price can impact production and profitability.
  • Logistical challenges: Efficient transportation and distribution of cement are critical. Infrastructure bottlenecks and high logistics costs can affect supply chain efficiency and market reach.
  • Market saturation and competition: Rapid capacity expansion can lead to oversupply in the market, pressuring prices and margins. Intense competition among manufacturers further complicates market dynamics.
  • Economic and policy uncertainty: Fluctuations in economic conditions and changes in government policies related to construction and infrastructure can affect demand, influencing investment returns and strategic planning.

Addressing these challenges requires careful planning, strategic investment, and a focus on sustainability to ensure long-term growth and competitiveness in the industry.

Conclusion
The Indian cement industry stands at a pivotal point, driven by robust infrastructure development, urbanisation, and strategic government initiatives. As manufacturers expand their capacities through significant investments in both greenfield and brownfield projects, they are positioning themselves to meet growing domestic and international demand. However, this growth trajectory is not without challenges, including regulatory hurdles, raw material availability, logistical issues and market competition.
To navigate these complexities, companies are focusing on sustainability, innovation, and strategic regional investments, ensuring they remain competitive and responsive to dynamic market conditions. As the industry continues to evolve, its ability to adapt and capitalise on emerging opportunities will be crucial in maintaining its role as a key driver of India’s economic development and infrastructure growth. With a commitment to quality and environmental responsibility, the Indian cement industry is well-equipped to support the nation’s aspirations and achieve long-term success on the global stage.

Concrete

Cement Industry Backs Co-Processing to Tackle Global Waste

Industry bodies recently urged policy support for cement co-processing as waste solution

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Leading industry bodies, including the Global Cement and Concrete Association (GCCA), European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council, have issued a joint statement highlighting the cement industry’s potential role in addressing the growing global challenge of non-recyclable and non-reusable waste. The organisations have called for stronger policy support to unlock the full potential of cement industry co-processing as a safe, effective and sustainable waste management solution.
Co-processing enables both energy recovery and material recycling by using suitable waste to replace fossil fuels in cement kilns, while simultaneously recycling residual ash into the cement itself. This integrated approach delivers a zero-waste solution, reduces landfill dependence and complements conventional recycling by addressing waste streams that cannot be recycled or are contaminated.
Already recognised across regions including Europe, India, Latin America and North America, co-processing operates under strict regulatory and technical frameworks to ensure high standards of safety, emissions control and transparency.
Commenting on the initiative, Thomas Guillot, Chief Executive of the GCCA, said co-processing offers a circular, community-friendly waste solution but requires effective regulatory frameworks and supportive public policy to scale further. He noted that while some cement kilns already substitute over 90 per cent of their fuel with waste, many regions still lack established practices.
The joint statement urges governments and institutions to formally recognise co-processing within waste policy frameworks, support waste collection and pre-treatment, streamline permitting, count recycled material towards national recycling targets, and provide fiscal incentives that reflect environmental benefits. It also calls for stronger public–private partnerships and international knowledge sharing.
With global waste generation estimated at over 11 billion tonnes annually and uncontrolled municipal waste projected to rise sharply by 2050, the signatories believe co-processing represents a practical and scalable response. With appropriate policy backing, it can help divert waste from landfills, reduce fossil fuel use in cement manufacturing and transform waste into a valuable societal resource.    

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Concrete

Industry Bodies Call for Wider Use of Cement Co-Processing

Joint statement seeks policy support for sustainable waste management

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Leading industry organisations have called for stronger policy support to accelerate the adoption of cement industry co-processing as a sustainable solution for managing non-recyclable and non-reusable waste. In a joint statement, bodies including the Global Cement and Concrete Association, European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council highlighted the role co-processing can play in addressing the growing global waste challenge.
Co-processing enables the use of waste as an alternative to fossil fuels in cement kilns, while residual ash is incorporated into cementitious materials, resulting in a zero-waste process. The approach supports both energy recovery and material recycling, complements conventional recycling systems and reduces reliance on landfill infrastructure. It is primarily applied to waste streams that are contaminated or unsuitable for recycling.
The organisations noted that co-processing is already recognised in regions such as Europe, India, Latin America and North America, operating under regulated frameworks to ensure safety, emissions control and transparency. However, adoption remains uneven globally, with some plants achieving over 90 per cent fuel substitution while others lack enabling policies.
The statement urged governments and institutions to formally recognise co-processing in waste management frameworks, streamline environmental permitting, incentivise waste collection and pre-treatment, account for recycled material content in national targets, and support public-private partnerships. The call comes amid rising global waste volumes, which are estimated at over 11 billion tonnes annually, with unmanaged waste contributing to greenhouse gas emissions, pollution and health risks.

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Concrete

Why Cement Needs CCUS

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Cement’s deep decarbonisation cannot be achieved through efficiency and fuel switching alone, making CCUS essential to address unavoidable process emissions from calcination. ICR explores if with the right mix of policy support, shared infrastructure, and phased scale-up from pilots to clusters, CCUS can enable India’s cement industry to align growth with its net-zero ambitions.

Cement underpins modern development—from housing and transport to renewable energy infrastructure—but it is also one of the world’s most carbon-intensive materials, with global production of around 4 billion tonnes per year accounting for 7 to 8 per cent of global CO2 emissions, according to the GCCA. What makes cement uniquely hard to abate is that 60 to 65 per cent of its emissions arise from limestone calcination, a chemical process that releases CO2 irrespective of the energy source used; the IPCC Sixth Assessment Report (AR6) therefore classifies cement as a hard-to-abate sector, noting that even fully renewable-powered kilns would continue to emit significant process emissions. While the industry has achieved substantial reductions over the past two decades through energy efficiency, alternative fuels and clinker substitution using fly ash, slag, and calcined clays, studies including the IEA Net Zero Roadmap and GCCA decarbonisation pathways show these levers can deliver only 50 to 60 per cent emissions reduction before reaching technical and material limits, leaving Carbon Capture, Utilisation and Storage (CCUS) as the only scalable and durable option to address remaining calcination emissions—an intervention the IPCC estimates will deliver nearly two-thirds of cumulative cement-sector emission reductions globally by mid-century, making CCUS a central pillar of any credible net-zero cement pathway.

Process emissions vs energy emissions
Cement’s carbon footprint is distinct from many other industries because it stems from two sources: energy emissions and process emissions. Energy emissions arise from burning fuels to heat kilns to around 1,450°C and account for roughly 35 to 40 per cent of total cement CO2 emissions, according to the International Energy Agency (IEA). These can be progressively reduced through efficiency improvements, alternative fuels such as biomass and RDF, and electrification supported by renewable power. Over the past two decades, such measures have delivered measurable gains, with global average thermal energy intensity in cement production falling by nearly 20 per cent since 2000, as reported by the IEA and GCCA.
The larger and more intractable challenge lies in process emissions, which make up approximately 60 per cent to 65 per cent of cement’s total CO2 output. These emissions are released during calcination, when limestone (CaCO3) is converted into lime (CaO), inherently emitting CO2 regardless of fuel choice or energy efficiency—a reality underscored by the IPCC Sixth Assessment Report (AR6). Even aggressive clinker substitution using fly ash, slag, or calcined clays is constrained by material availability and performance requirements, typically delivering 20 to 40 per cent emissions reduction at best, as outlined in the GCCA–TERI India Cement Roadmap and IEA Net Zero Scenario. This structural split explains why cement is classified as a hard-to-abate sector and why incremental improvements alone are insufficient; as energy emissions decline, process emissions will dominate, making Carbon Capture, Utilisation and Storage (CCUS) a critical intervention to intercept residual CO2 and keep the sector’s net-zero ambitions within reach.

Where CCUS stands today
Globally, CCUS in cement is moving from concept to early industrial reality, led by Europe and North America, with the IEA noting that cement accounts for nearly 40 per cent of planned CCUS projects in heavy industry, reflecting limited alternatives for deep decarbonisation; a flagship example is Heidelberg Materials’ Brevik CCS project in Norway, commissioned in 2025, designed to capture about 400,000 tonnes of CO2 annually—nearly half the plant’s emissions—with permanent offshore storage via the Northern Lights infrastructure (Reuters, Heidelberg Materials), alongside progress at projects in the UK, Belgium, and the US such as Padeswood, Lixhe (LEILAC), and Ste. Genevieve, all enabled by strong policy support, public funding, and shared transport-and-storage infrastructure.
These experiences show that CCUS scales fastest when policy support, infrastructure availability, and risk-sharing mechanisms align, with Europe bridging the viability gap through EU ETS allowances, Innovation Fund grants, and CO2 hubs despite capture costs remaining high at US$ 80-150 per tonne of CO2 (IEA, GCCA); India, by contrast, is at an early readiness stage but gaining momentum through five cement-sector CCU testbeds launched by the Department of Science and Technology (DST) under academia–industry public–private partnerships involving IITs and producers such as JSW Cement, Dalmia Cement, and JK Cement, targeting 1-2 tonnes of CO2 per day to validate performance under Indian conditions (ETInfra, DST), with the GCCA–TERI India Roadmap identifying the current phase as a foundation-building decade essential for achieving net-zero by 2070.
Amit Banka, Founder and CEO, WeNaturalists, says “Carbon literacy means more than understanding that CO2 harms the climate. It means cement professionals grasping why their specific plant’s emissions profile matters, how different CCUS technologies trade off between energy consumption and capture rates, where utilisation opportunities align with their operational reality, and what governance frameworks ensure verified, permanent carbon sequestration. Cement manufacturing contributes approximately 8 per cent of global carbon emissions. Addressing this requires professionals who understand CCUS deeply enough to make capital decisions, troubleshoot implementation challenges, and convince boards to invest substantial capital.”

Technology pathways for cement
Cement CCUS encompasses a range of technologies, from conventional post-combustion solvent-based systems to process-integrated solutions that directly target calcination, each with different energy requirements, retrofit complexity, and cost profiles. The most mature option remains amine-based post-combustion capture, already deployed at industrial scale and favoured for early cement projects because it can be retrofitted to existing flue-gas streams; however, capture costs typically range from US$ 60-120 per tonne of CO2, depending on CO2 concentration, plant layout, and energy integration.
Lovish Ahuja, Chief Sustainability Officer, Dalmia Cement (Bharat), says, “CCUS in Indian cement can be viewed through two complementary lenses. If technological innovation, enabling policies, and societal acceptance fail to translate ambition into action, CCUS risks becoming a significant and unavoidable compliance cost for hard-to-abate sectors such as cement, steel, and aluminium. However, if global commitments under the Paris Agreement and national targets—most notably India’s Net Zero 2070 pledge—are implemented at scale through sustained policy and industry action, CCUS shifts from a future liability to a strategic opportunity. In that scenario, it becomes a platform for technological leadership, long-term competitiveness, and systemic decarbonisation rather than merely a regulatory burden.”
“Accelerating CCUS adoption cannot hinge on a single policy lever; it demands a coordinated ecosystem approach. This includes mission-mode governance, alignment across ministries, and a mix of enabling instruments such as viability gap funding, concessional and ESG-linked finance, tax incentives, and support for R&D, infrastructure, and access to geological storage. Importantly, while cement is largely a regional commodity with limited exportability due to its low value-to-weight ratio, CCUS innovation itself can become a globally competitive export. By developing, piloting, and scaling cost-effective CCUS solutions domestically, India can not only decarbonise its own cement industry but also position itself as a supplier of affordable CCUS technologies and services to cement markets worldwide,” he adds.
Process-centric approaches seek to reduce the energy penalty associated with solvent regeneration by altering where and how CO2 is separated. Technologies such as LEILAC/Calix, which uses indirect calcination to produce a high-purity CO2 stream, are scaling toward a ~100,000 tCO2 per year demonstrator (LEILAC-2) following successful pilots, while calcium looping leverages limestone chemistry to achieve theoretical capture efficiencies above 90 per cent, albeit still at pilot and demonstration stages requiring careful integration. Other emerging routes—including oxy-fuel combustion, membrane separation, solid sorbents, and cryogenic or hybrid systems—offer varying trade-offs between purity, energy use, and retrofit complexity; taken together, recent studies suggest that no single technology fits all plants, making a multi-technology, site-specific approach the most realistic pathway for scaling CCUS across the cement sector.
Yash Agarwal, Co-Founder, Carbonetics Carbon Capture, says, “We are fully focused on CCUS, and for us, a running plant is a profitable plant. What we have done is created digital twins that allow operators to simulate and resolve specific problems in record time. In a conventional setup, when an issue arises, plants often have to shut down operations and bring in expert consultants. What we offer instead is on-the-fly consulting. As soon as a problem is detected, the system automatically provides a set of potential solutions that can be tested on a running plant. This approach ensures that plant shutdowns are avoided and production is not impacted.”

The economics of CCUS
Carbon Capture, Utilisation and Storage (CCUS) remains one of the toughest economic hurdles in cement decarbonisation, with the IEA estimating capture costs of US$ 80-150 per tonne of CO2, and full-system costs raising cement production by US$ 30-60 per tonne, potentially increasing prices by 20 to 40 per cent without policy support—an untenable burden for a low-margin, price-sensitive industry like India’s.
Global experience shows CCUS advances beyond pilots only when the viability gap is bridged through strong policy mechanisms such as EU ETS allowances, Innovation Fund grants, and carbon Contracts for Difference (CfDs), yet even in Europe few projects have reached final investment decision (GCCA); India’s lack of a dedicated CCUS financing framework leaves projects reliant on R&D grants and balance sheets, reinforcing the IEA Net Zero Roadmap conclusion that carbon markets, green public procurement, and viability gap funding are essential to spread costs across producers, policymakers, and end users and prevent CCUS from remaining confined to demonstrations well into the 2030s.

Utilisation or storage
Carbon utilisation pathways are often the first entry point for CCUS in cement because they offer near-term revenue potential and lower infrastructure complexity. The International Energy Agency (IEA) estimates that current utilisation routes—such as concrete curing, mineralisation into aggregates, precipitated calcium carbonate (PCC), and limited chemical conversion—can realistically absorb only 5 per cent to 10 per cent of captured CO2 at a typical cement plant. In India, utilisation is particularly attractive for early pilots as it avoids the immediate need for pipelines, injection wells, and long-term liability frameworks. Accordingly, Department of Science and Technology (DST)–supported cement CCU testbeds are already demonstrating mineralisation and CO2-cured concrete applications at 1–2 tonnes of CO2 per day, validating performance, durability, and operability under Indian conditions.
However, utilisation faces hard limits of scale and permanence. India’s cement sector emits over 200 million tonnes of CO2 annually (GCCA), far exceeding the absorptive capacity of domestic utilisation markets, while many pathways—especially fuels and chemicals—are energy-intensive and dependent on costly renewable power and green hydrogen. The IPCC Sixth Assessment Report (AR6) cautions that most CCU routes do not guarantee permanent storage unless CO2 is mineralised or locked into long-lived materials, making geological storage indispensable for deep decarbonisation. India has credible storage potential in deep saline aquifers, depleted oil and gas fields, and basalt formations such as the Deccan Traps (NITI Aayog, IEA), and hub-based models—where multiple plants share transport and storage infrastructure—can reduce costs and improve bankability, as seen in Norway’s Northern Lights project. The pragmatic pathway for India is therefore a dual-track approach: utilise CO2 where it is economical and store it where permanence and scale are unavoidable, enabling early learning while building the backbone for net-zero cement.

Policy, infrastructure and clusters
Scaling CCUS in the cement sector hinges on policy certainty, shared infrastructure, and coordinated cluster development, rather than isolated plant-level action. The IEA notes that over 70 per cent of advanced industrial CCUS projects globally rely on strong government intervention—through carbon pricing, capital grants, tax credits, and long-term offtake guarantees—with Europe’s EU ETS, Innovation Fund, and carbon Contracts for Difference (CfDs) proving decisive in advancing projects like Brevik CCS. In contrast, India lacks a dedicated CCUS policy framework, rendering capture costs of USD 80–150 per tonne of CO2 economically prohibitive without state support (IEA, GCCA), a gap the GCCA–TERI India Cement Roadmap highlights can be bridged through carbon markets, viability gap funding, and green public procurement.
Milan R Trivedi, Vice President, Shree Digvijay Cement, says, “CCUS represents both an unavoidable near-term compliance cost and a long-term strategic opportunity for Indian cement producers. While current capture costs of US$ 100-150 per tonne of CO2 strain margins and necessitate upfront retrofit investments driven by emerging mandates and NDCs, effective policy support—particularly a robust, long-term carbon pricing mechanism with tradable credits under frameworks like India’s Carbon Credit Trading Scheme (CCTS)—can de-risk capital deployment and convert CCUS into a competitive advantage. With such enablers in place, CCUS can unlock 10 per cent to 20 per cent green price premiums, strengthen ESG positioning, and allow Indian cement to compete in global low-carbon markets under regimes such as the EU CBAM, North America’s buy-clean policies, and Middle Eastern green procurement, transforming compliance into export-led leadership.”
Equally critical is cluster-based CO2 transport and storage infrastructure, which can reduce unit costs by 30 to 50 per cent compared to standalone projects (IEA, Clean Energy Ministerial); recognising this, the DST has launched five CCU testbeds under academia–industry public–private partnerships, while NITI Aayog works toward a national CCUS mission focused on hubs and regional planning. Global precedents—from Norway’s Northern Lights to the UK’s HyNet and East Coast clusters—demonstrate that CCUS scales fastest when governments plan infrastructure at a regional level, making cluster-led development, backed by early public investment, the decisive enabler for India to move CCUS from isolated pilots to a scalable industrial solution.
Paul Baruya, Director of Strategy and Sustainability, FutureCoal, says, “Cement is a foundational material with a fundamental climate challenge: process emissions that cannot be eliminated through clean energy alone. The IPCC is clear that in the absence of a near-term replacement of Portland cement chemistry, CCS is essential to address the majority of clinker-related emissions. With global cement production at around 4 gigatonnes (Gt) and still growing, cement decarbonisation is not a niche undertaking, it is a large-scale industrial transition.”

From pilots to practice
Moving CCUS in cement from pilots to practice requires a sequenced roadmap aligning technology maturity, infrastructure development, and policy support: the IEA estimates that achieving net zero will require CCUS to scale from less than 1 Mt of CO2 captured today to over 1.2 Gt annually by 2050, while the GCCA Net Zero Roadmap projects CCUS contributing 30 per cent to 40 per cent of total cement-sector emissions reductions by mid-century, alongside efficiency, alternative fuels, and clinker substitution.
MM Rathi, Joint President – Power Plants, Shree Cement, says, “The Indian cement sector is currently at a pilot to early demonstration stage of CCUS readiness. A few companies have initiated small-scale pilots focused on capturing CO2 from kiln flue gases and exploring utilisation routes such as mineralisation and concrete curing. CCUS has not yet reached commercial integration due to high capture costs (US$ 80-150 per tonne of CO2), lack of transport and storage infrastructure, limited access to storage sites, and absence of long-term policy incentives. While Europe and North America have begun early commercial deployment, large-scale CCUS adoption in India is more realistically expected post-2035, subject to enabling infrastructure and policy frameworks.”
Early pilots—such as India’s DST-backed CCU testbeds and Europe’s first commercial-scale plants—serve as learning platforms to validate integration, costs, and operational reliability, but large-scale deployment will depend on cluster-based scale-up, as emphasised by the IPCC AR6, which highlights the need for early CO2 transport and storage planning to avoid long-term emissions lock-in. For India, the GCCA–TERI India Roadmap identifies CCUS as indispensable for achieving net-zero by 2070, following a pragmatic pathway: pilot today to build confidence, cluster in the 2030s to reduce costs, and institutionalise CCUS by mid-century so that low-carbon cement becomes the default, not a niche, in the country’s infrastructure growth.

Conclusion
Cement will remain indispensable to India’s development, but its long-term viability hinges on addressing its hardest emissions challenge—process CO2 from calcination—which efficiency gains, alternative fuels, and clinker substitution alone cannot eliminate; global evidence from the IPCC, IEA, and GCCA confirms that Carbon Capture, Utilisation and Storage (CCUS) is the only scalable pathway capable of delivering the depth of reduction required for net zero. With early commercial projects emerging in Europe and structured pilots underway in India, CCUS has moved beyond theory into a decisive decade where learning, localisation, and integration will shape outcomes; however, success will depend less on technology availability and more on collective execution, including coordinated policy frameworks, shared transport and storage infrastructure, robust carbon markets, and carbon-literate capabilities.
For India, a deliberate transition from pilots to practice—anchored in cluster-based deployment, supported by public–private partnerships, and aligned with national development and climate goals—can transform CCUS from a high-cost intervention into a mainstream industrial solution, enabling the cement sector to keep building the nation while sharply reducing its climate footprint.

– Kanika Mathur

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