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Renewable energy is a cornerstone of our strategy

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MM Rathi, Joint President – Power Plants, Shree Cement, speaks about their comprehensive approach to sustainability, which includes renewable energy and cutting-edge technologies.

Can you provide an overview of your company’s current initiatives and strategies to enhance energy efficiency in cement production?
At Shree Cement, we are committed to advancing energy efficiency in cement production through a comprehensive and forward-thinking strategy. We recognise that energy efficiency is crucial not only for reducing operational costs but also for minimising our environmental impact. To this end, we have undertaken several initiatives and adopted innovative strategies to enhance energy efficiency across our cement production processes. We have progressively integrated the use of alternative fuels, such as biomass and waste-derived fuels, into our production process. This not only reduces our dependence on traditional fossil fuels but also lowers greenhouse gas emissions.
Moreover, at the project stage itself, we select and implement energy-efficient drives and key equipment, including fans, compressors and
other critical components, to optimise performance and reduce overall energy consumption. Through advanced data analytics and real-time monitoring, we have optimised key processes such as clinker production, raw material grinding and cement milling, which has led to significant reductions in specific energy consumption.
We conduct Computational Fluid Dynamics (CFD) analysis for our plants right before project execution as a best practice to optimise energy efficiency and ensure informed decision-making in our energy-saving initiatives. We also implement regular energy audits to continuously assess and optimise our energy consumption. These audits help identify areas for improvement, track progress and ensure that our energy efficiency measures are effective.
We are proud to have achieved a renewable energy share of 55.9 per cent in FY 23-24, the highest among Indian cement industries. This achievement underscores our commitment to reducing our carbon footprint and reliance on non-renewable energy sources. Our total power generation capacity is 1 GW, with 50 per cent derived from solar, wind and Waste Heat Recovery (WHR), 30 per cent from Independent Power Producers (IPP), and the remaining 20 per cent from coal-based captive power plants. We have invested in Waste Heat Recovery (WHR) systems with a total capacity of 245 MW across several of our plants. These systems capture waste heat from the production process and convert it into electrical energy, reducing our overall energy consumption and enhancing efficiency. Further, we are exploring emerging technologies i.e. battery energy storage, pumped hydro energy storage, electric trucks etc.
As part of our long-term sustainability goals, we have joined the RE100 initiative, pledging to achieve 100 per cent renewable electricity by 2050. This commitment reflects our dedication to leading the industry in transitioning to a low-carbon future. In alignment with global climate goals, we have set ambitious targets to reduce our Scope 2 emissions by ~27-28 per cent and Scope 1 emissions by ~12-13 per cent by 2030, compared to 2019 levels. These targets highlight our proactive approach to mitigating climate change.

What are the key challenges your company faces in implementing energy-efficient practices in the cement manufacturing process?
While we are committed to enhancing energy efficiency, a few challenges persist. For example, the use of alternative fuels is impacted by supply chain issues and resource availability. Fluctuations in alternative fuel supply (quantity and quality) can disrupt the consistent implementation of energy-efficient practices. Also, upgrading infrastructure to incorporate energy-efficient technologies, including the higher costs of battery and pump storage systems, requires substantial capital investment. There could also be technological constraints related to compatibility and operational disruptions when integrating new, energy-efficient technologies into existing plants. Addressing these challenges requires a thorough approach to enhance energy efficiency throughout the cement manufacturing process, which our engineers are constantly endeavoring to find solutions to.

How do advancements in technology contribute to improving energy efficiency in your cement plants? Can you provide some examples?
Technological advancements are crucial for improving energy efficiency at our cement plants. We leverage Industry 4.0 technologies, including centralised data servers and remote data monitoring, to optimise operations. These technologies provide real-time insights and control over plant performance, enabling precise energy management and reducing downtime. Also, ISO 50001-certified energy management systems provide a structured approach to continuous energy performance improvements.
Additionally, our manufacturing plants leverage the latest and state-of-the-art equipment such as waste heat recovery systems, MVDs/VFDs, IE4 motors, centrifugal compressors, etc. Our meticulous planning and adoption of energy-efficient technologies have helped us overachieve the targets that were notified under the various Perform, Achieve and Trade
(PAT) schemes.

What role does renewable energy play in your overall strategy for energy efficiency, and how is it integrated into your cement manufacturing operations?
Renewable energy is a cornerstone of our strategy for energy efficiency and sustainability at Shree Cement. Our commitment to integrating renewable energy is reflected in our energy mix, where renewable sources account for 55.9 per cent of our total energy consumption. This significant share has enabled us to avoid 0.94 million tons of CO2 emissions, demonstrating our impact on reducing greenhouse gasses. Our total power generation capacity is 1 GW, with 50 per cent derived from renewable sources, including solar, wind and WHR.
WHR systems, with a capacity of 245 MW, capture and reuse heat generated during production, converting it into electricity. This integration supports our goal of transitioning away from non-renewable fossil fuels and aligns with our commitment to achieve 100 per cent renewable electricity by 2050.
Our energy management strategy leverages renewable energy to stabilise and optimise our energy supply. We are exploring advanced energy storage solutions, such as battery and pump storage systems, to manage the variability of renewable sources and ensure a consistent energy supply. Renewable energy is pivotal in achieving our sustainability targets, including substantial reductions in Scope 1 and Scope 2 emissions. By increasing our renewable energy share, we have significantly lowered our carbon footprint and contributed to global climate goals.

Can you discuss any specific projects or upgrades your company has undertaken to reduce energy consumption and increase efficiency in your cement production facilities?
Shree Cement has undertaken several strategic projects to reduce energy consumption and enhance efficiency in its cement production facilities. A key focus has been the integration of alternative fuels and raw materials into the production processes. The company has made notable progress by utilising hazardous waste, Municipal Solid Waste (MSW) in the form of Refuse Derived Fuel (RDF), and biomass waste such as crop residue. We have been steadily increasing our replacement of fossil fuels with agro-waste and have replaced over +300 billion kCal in FY24. This shift significantly reduces reliance on traditional fossil fuels and promotes the use of renewable resources in cement manufacturing.
We are the pioneers within the cement industry in implementing WHR system to capture waste heat and convert it into usable electricity. Having proven its success, as a policy, Shree Cement is implementing WHR systems across all the existing and upcoming kilns.
Further, Shree Cement manufactures blended cement by incorporating fly ash and ground granulated blast-furnace slag (GBF slag), replacing clinker. This approach not only reduces the demand for clinker but also conserves essential natural resources, such as limestone, and lowers fossil fuel consumption, aligning with our sustainability goals. Additionally, we have focused on improving energy efficiency in our operations. We have successfully reduced clinker energy use by approximately 12 to 18 Kcal/kg clinker produced.

How do you measure and monitor energy efficiency in your cement manufacturing processes, and what metrics are most critical for your company?
To effectively measure and monitor energy efficiency in our cement manufacturing processes, Shree Cement employs several critical metrics. The primary metric is Specific Energy Consumption (SEC), which quantifies the energy required per unit of cement produced, typically expressed in kWh per ton. Reducing SEC is a fundamental objective for enhancing energy efficiency.
Thermal energy consumption is also closely monitored, focusing on the energy required for pyro processes, especially in the kiln. This helps identify opportunities to improve fuel efficiency and optimise Pyro process. Similarly, electrical energy consumption is tracked across various plant components, such as grinding mills, process fans pumps and conveyors. Monitoring this metric helps identify potential areas for improvement in electrical energy use. Another metric is cooler efficiency, which measures how effectively cooling air is utilised back in the
pyro processing, which is crucial for lowering operational costs.
Additionally, WHR systems are evaluated for their effectiveness in capturing and reusing waste heat, as higher recovery rates from these systems can significantly reduce overall energy consumption.
Lastly, monitoring CO2 emissions per tonne of cement provides insight into the environmental impact of our production activities and helps us align with our sustainability goals.

What partnerships or collaborations has your company engaged in to promote and enhance energy efficiency within the cement industry?
Shree Cement has adopted a proactive approach in promoting and enhancing energy efficiency within the cement industry through various strategic partnerships and collaborations.
One of the key avenues has been our partnership with leading technology providers and equipment suppliers to integrate advanced energy-efficient technologies into our production processes. These partnerships enable us to access the latest innovations in energy management, process optimisation, and waste heat recovery systems. Besides teaming up with tech companies, we engage with government agencies and regulatory bodies to stay informed about and contribute to energy efficiency regulations and policies. Our participation in public consultations and policy development helps shape industry standards and supports our compliance with energy efficiency mandates.
Shree Cement is part of various sustainability networks and forums that focus on energy efficiency and environmental impact reduction. These networks provide opportunities to learn from peers, share experiences and collaborate on industry-wide sustainability projects.
We are also actively involved in industry associations such as the Cement Manufacturers’ Association (CMA) and the Confederation of Indian Industry (CII). Through these platforms, we participate in knowledge-sharing, best practice exchange and collaborative efforts on energy efficiency and sustainability initiatives across the cement sector. Shree Cement has also joined the RE100 initiative, a global platform of businesses committed to achieving 100 per cent renewable electricity. This collaboration aligns with our goal to transition to renewable energy sources and drives collective action toward sustainability in the cement industry.
These strategic alliances are instrumental in advancing our sustainability goals and driving industry-wide improvements.

How does your company balance the need for energy efficiency with maintaining high production levels and meeting market demands?
At Shree Cement, balancing energy efficiency with high production levels and market demands involves a multifaceted approach. One of the methods is process optimisation. We continuously refine our manufacturing processes using advanced control systems and data analytics. This approach enhances our operational efficiency while maintaining our production capacity, allowing us to meet market needs effectively. Additionally, Shree Cement has established strong energy management systems that monitor energy consumption in real time. This helps us identify areas for savings and reduce waste while sustaining production levels, ensuring optimal energy use.
Furthermore, Shree Cement also invests in innovation by adopting new technologies such as more efficient clinker coolers which enhance energy efficiency and production levels. To manage energy costs and support high production levels, we run our cement mills during the day when our solar plants are operational. For the remaining energy demand, we plan to meet it during off-peak times of the day (TOD). This strategic energy use helps us optimise energy costs while maintaining efficient production.

Looking ahead, what are your company’s strategic priorities for further improving energy efficiency, and how do you plan to address future energy challenges in the cement industry?
Shree Cement is focused on several key strategic priorities to enhance energy efficiency and address future energy challenges in the cement industry. We plan to expand our investments in solar and wind energy projects to further increase our renewable energy capacity, enhance our reliance on clean energy sources and reduce our overall carbon footprint. To ensure a stable and reliable supply of renewable energy, we are exploring solar plants integrated with battery storage systems. This will enable us to store excess solar power and use it during periods of low sunlight, improving energy efficiency and continuity.
We are also exploring the development of pump hydro storage plants as a means to balance energy supply and demand. This technology will help us manage fluctuations in renewable energy generation and enhance our overall energy resilience.
To reduce emissions from our logistics operations, we are looking at electric trucks, which will decrease our reliance on fossil fuels for transportation and contribute to our sustainability goals.
Further, we are making investments to establish a comprehensive, end-to-end solid waste feeding system for the consumption of municipal solid waste to substantially enhance the thermal substitution rate through a pilot at one of the locations. Upon success, this shall be replicated in other units as well.

– Kanika Mathur

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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