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Adopting CCUS technologies requires breaking silos

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Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba, shares insights on how CCUS can revolutionise the cement industry’s approach to sustainability.

A holistic approach towards sustainability is the need of the hour for the cement sector. With Carbon Capture, Utilisation and Storage (CCUS) emerging as a strategic solution for the issue of emissions, Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba, discusses the key challenges, investments and the role of cross-functional collaboration in accelerating CCUS adoption. Drawing from her expertise in ESG and sustainability, she also highlights the importance of inclusive leadership in driving green innovation.

With your extensive experience in driving innovation across industries, how do you see CCUS transforming the cement sector?
The cement industry is a cornerstone of global infrastructure, with an annual production of over 4 billion tonnes globally and around 370 million tonnes in India in 2023. It contributes to approximately seven to eight per cent of global CO2 emissions, making it one of the most significant industrial contributors to climate change. As nations strive to meet their net zero targets, the industry faces increasing pressure to innovate and adopt green technologies. Carbon Capture, Utilisation and Storage (CCUS) has emerged as a transformative technology that holds the potential to revolutionise cement manufacturing by addressing its carbon footprint while supporting global sustainability goals.
CCUS has the potential to be a game-changer for the cement industry, which accounts for about seven to eight per cent of global CO2 emissions. It addresses one of the sector’s most significant challenges—emissions from clinker production. By capturing CO2 at the source and either storing it or repurposing it into value-added products, CCUS not only reduces the carbon footprint but also creates new economic opportunities.
Globally, companies like Heidelberg Materials are pioneering CCUS adoption through projects such as the Brevik Cement Plant in Norway, which aims to capture 400,000 tonnes of CO2 annually. In India, Dalmia Cement is exploring CCUS to meet its carbon-negative goal by 2040. By integrating CCUS, the cement industry can align with global climate goals, enhance sustainability and foster a circular economy.

Given your expertise in ESG and sustainability, what are the key challenges in aligning CCUS initiatives with corporate sustainability goals?
Aligning CCUS with corporate sustainability goals involves several challenges:

  • High costs: The cost of carbon capture, which ranges between $40 and $120 per tonne, is a significant hurdle, especially for smaller players.
  • Policy gaps: While some countries have robust CCUS policies, India still lacks comprehensive frameworks, subsidies, or carbon pricing mechanisms to incentivise adoption.
  • Integration challenges: Incorporating CCUS into broader sustainability frameworks, such as the UN SDGs or science-based targets, requires a cohesive approach that balances technical, financial and operational considerations.
  • Data availability and standardisation: Reliable and consistent data on CO2 emissions, capture rates and storage volumes are crucial for accurate life-cycle assessments and effective monitoring, verification and reporting.
  • Technological maturity: While advancements are being made, many CCUS technologies are still under development and require further research and optimisation to achieve commercial viability and scalability.

To address these challenges, cement companies must engage with policymakers, leverage government incentives and prioritise R&D to lower technology costs.

How can cross-functional teams and global collaboration accelerate the adoption of CCUS technologies in cement manufacturing?
Adopting CCUS technologies requires breaking silos and fostering collaboration across functions and geographies.

  • Cross-functional teams: By involving R&D, operations, finance and sustainability teams, companies can identify synergies between CCUS and existing initiatives, optimising resources and reducing implementation timelines.
  • Global collaboration: Partnerships with global organisations like the Global Cement and Concrete Association (GCCA) enable knowledge-sharing and joint innovation. For instance, European countries are collaborating on CO2 transport and storage infrastructure through projects like Northern Lights.
  • Supply chain collaboration: Engaging with suppliers, customers, and other stakeholders across the value chain can facilitate the development of integrated CCUS solutions and create a more sustainable and resilient
    supply chain.

In India, international collaborations can also provide funding and technical expertise, accelerating CCUS adoption in a cost-effective manner.

Drawing from your strategic planning experience, what should be the key focus areas for cement companies investing in CCUS?
Cement companies should focus on the following areas to maximise the impact of their CCUS investments:

  • Research and development: Innovating to make CCUS technologies more cost-effective and efficient is critical. Global leaders like Lafarge Holcim are setting benchmarks by dedicating substantial resources to CCUS R&D.
  • Pilot projects: Testing CCUS technology in local contexts helps identify potential barriers and refine implementation strategies.
  • Policy advocacy: Companies must actively lobby for carbon credits, tax incentives and supportive regulations to make CCUS projects financially viable.
  • Public-private partnerships: Collaborations with government bodies, similar to the US’s 45Q tax credit for CCUS, can help scale projects in India.
  • Lifecycle assessment: Conduct comprehensive lifecycle assessments to evaluate the environmental and economic impacts of CCUS projects throughout their entire lifecycle.
  • Risk management: Develop robust risk management strategies to address potential challenges, such as technological uncertainties, market fluctuations and regulatory changes.

By focusing on these areas, companies can position themselves as sustainability leaders while contributing to national and global climate goals.

From a programme management perspective, what factors are critical for successfully implementing large scale CCUS projects in cement plants?
Successful implementation of large scale CCUS projects hinges on several factors:
1. Stakeholder engagement: Gaining buy-in from local communities, governments and industry stakeholders is critical for project success.
2. Infrastructure development: Building infrastructure for CO2 transport and storage, such as pipelines and storage sites, is a prerequisite.
3. Monitoring and reporting: Advanced monitoring systems ensure transparency and compliance, building trust among stakeholders.
4. Risk management: Identifying and mitigating risks related to technology, finance and operations is essential for ensuring project viability.
For instance, Europe’s Northern Lights project exemplifies the importance of robust infrastructure and stakeholder collaboration in scaling CCUS technologies.

How can lessons from the automotive and wind energy sectors inform the cement industry’s approach to carbon reduction through CCUS?
The automotive and wind energy sectors offer valuable lessons for the cement industry:

1. Technology innovation: Both sectors have achieved scalability through continuous innovation and standardisation. Cement companies can follow a similar trajectory by establishing technology hubs for CCUS research.
2. Policy incentives: Government incentives, such as subsidies for electric vehicles and tax credits for wind projects, have been critical to driving adoption. The cement industry can lobby for similar financial support for CCUS.
3. Supply chain optimisation: Optimised supply chains in these sectors have reduced costs and improved efficiency. The cement industry can adopt modular CCUS systems and localised CO2 storage solutions to minimise transportation challenges.
By leveraging these insights, the cement industry can accelerate its journey towards carbon neutrality.

What role do you see for diversity and inclusive leadership in driving innovation and adoption of green technologies like CCUS in the cement industry?
Diversity and inclusivity are crucial for fostering innovation in green technologies like CCUS.
Diverse teams bring unique perspectives and creative solutions, enhancing problem-solving and decision-making capabilities.

  • Empowering women: Encouraging women to take leadership roles in sustainability can unlock untapped potential. For example, platforms like WIMA (Women in Manufacturing and Allied sectors) provide mentorship and upskilling opportunities, empowering women to contribute to green innovation in cement.
  • Inclusive culture: Companies with inclusive leadership are more likely to embrace transformative technologies, as they create environments where all ideas are valued.
  • Ethical considerations: Diverse and inclusive teams are better equipped to address the ethical and social implications of CCUS technologies and ensure that these technologies are developed and deployed in a responsible and equitable manner.

Organisations like Dalmia Cement are already promoting diversity in leadership, setting a precedent for the industry. By embracing inclusivity, the cement sector can drive meaningful change while fostering innovation.
CCUS is poised to revolutionise the cement industry by addressing its carbon footprint and aligning with global climate goals. While challenges remain, collaborative efforts, strategic investments and inclusive leadership can unlock the potential of CCUS technologies.

By learning from other industries and leveraging global partnerships, the cement sector can transform its operations, setting an example for other high-emission industries to follow. As the world moves towards net zero emissions, CCUS offers a promising pathway for a sustainable future.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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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.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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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.

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