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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

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

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Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

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Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

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Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

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Concrete

Dalmia Cement to Acquire 5.2 MnTPA Capacity

Deal covers cement assets in Madhya Pradesh and Uttar Pradesh

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Dalmia Cement (Bharat), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) to acquire cement assets with 5.2 MnTPA capacity in the Central region.

The acquisition covers cement plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh. The assets include 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The enterprise value of the transaction is Rs 28.5 billion.

Following completion of the transaction, Dalmia Bharat’s cement capacity will increase to 54.7 MnTPA. Its ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further raise capacity to 66.7 MnTPA by the second or third quarter of FY28. The transaction is expected to be completed within two weeks.

Dalmia Cement had entered into a framework agreement with Jaiprakash Associates in December 2022 for the sale of business assets and related agreements, including a business transfer agreement and cement sale purchase agreement. The agreements were intended to settle disputes between the parties, including those under the long-term clinker supply agreement. However, the transaction could not be completed after Jaiprakash Associates was admitted to insolvency.

Following approval of the Adani Group’s resolution plan for Jaiprakash Associates under the Insolvency and Bankruptcy Code, Dalmia Cement requested that the earlier agreement be considered to settle pending disputes. The company has now executed a fresh Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) for the cement undertaking.

The acquisition supports Dalmia Bharat’s strategy to become a pan-India cement player and provides faster access to Central markets compared to a greenfield project. The assets also offer expansion potential through debottlenecking and brownfield development.

Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, said the assets are a strong strategic fit and will help the company serve high-potential markets in the Central region. He added that the expansion potential of the assets and their proximity to Dalmia’s captive mines could help create a future capacity hub.

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