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Cementing Circularity: From Waste to Value

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The cement industry is redefining its resource-intensive legacy by embracing circular economy principles such as co-processing, clinker substitution and industrial symbiosis. These strategies help cut emissions and unlock economic efficiencies, positioning cement as a driver of sustainable growth.

The cement industry is inherently resource-intensive, yet it holds immense potential to embrace circular economy principles, for example, shifting from wasteful linear models to regenerative systems of reuse and resource efficiency. According to joint research by the World Economic Forum and McKinsey, transitioning to a circular built environment could not only reduce embodied CO2 emissions by up to 75 per cent, but also generate US$ 360 billion in net profits annually by 2050. Cement, responsible for nearly 30 per cent of material-related emissions in construction, is a pivotal actor in this shift.
On a global scale, embracing circular strategies, such as recycling construction and demolition waste, substituting clinker with recycled content, and recovering energy from waste, could unlock up to €110 billion in value by mid-century and mitigate about 2 billion tonnes of CO2 emissions, according to McKinsey. Such measures, when applied systematically, offer both environmental traction and economic upsides across the cement value chain.
In India, the circular transformation is already underway. Cement companies are increasingly integrating industrial by-products like fly ash, slag and calcined clays to substitute virgin limestone, reducing both resource extraction and emissions. As identified in a systematic review, this shift is fast gaining industrial momentum, reflecting a widening interest in recycling, clinker substitution and co-processing of waste streams across research
and practice.

Why Circular Economy?
The cement industry’s transition to a circular economy isn’t just an environmental imperative, it’s a powerful economic opportunity. According to joint research by the World Economic Forum and McKinsey, shifting to circular practices in the built environment, including cement, could reduce embodied CO2 emissions by up to 75 per cent and generate as much as $ 360 billion in net profits annually by 2050. Cement alone contributes roughly 30 per cent of building-related materials emissions, underscoring why transforming its production processes is both urgent and economically compelling.
Sanjay Mehta, President Procurement and Corporate Affairs, Shree Cement, says, “Cement plants are widely recognised as optimal facilities for the safe and efficient disposal of industrial wastes, owing to their high-temperature processing and closed-loop systems. At Shree Cement, we co-process a wide range of materials in strict adherence to Central Pollution Control Board (CPCB) guidelines. Commonly used wastes include agricultural residues (such as crop stubble and biomass), municipal solid waste
in the form of RDF, rubber and plastic waste and dried sewage sludge. This approach not only
ensures sustainable waste management but also significantly reduces reliance on fossil fuels and virgin raw materials, reinforcing our commitment to circular economy principles.”
Embedded in the principles of industrial ecology, co-processing transforms what would be waste into useful feedstock, providing both energy and material value. According to the Confederation of Indian Industry (CII) and Shakti Foundation, different waste streams—Municipal Solid Waste (MSW) at 57 per cent, biomass at 34 per cent, tyre waste at 7 per cent, hazardous material at 3.5 per cent, and spent pot lining at under 1 per cent—could together serve as alternative fuels in cement kilns by 2025. Not only does this divert landfill-bound refuse, it replaces virgin mineral and fossil fuel inputs, aligning profit-generating practices with ecological responsibility.
Indian cement companies are trailing global frontrunners yet making encouraging strides. Ambuja Cement, through its Geoclean initiative, co-processed approximately 0.54 million tonnes of alternative fuels in FY 2023–24, accounting for about 6.36 per cent of their thermal energy needs. They also used 8.6 million tonnes of waste-derived raw materials like fly ash and slag, demonstrating how circular strategies can scale within existing operations.
Additionally, Geocycle India has co-processed over 2 million tonnes of waste in recent years, achieving up to 6 per cent TSR at select plants, including those in Gujarat at 7 per cent TSR, highlighting both opportunity and industrial momentum.
That said, co-processing demands careful planning, technology, and logistics. Pre-processing infrastructure, such as shredders, homogenous storage, feeder systems and on-site labs, is essential to ensure consistent calorific value, safe combustion and clinker quality. According to CPCB estimates, investing Rs.25–30 crore per million tonne per annum of clinker capacity is required to retrofit plants to achieve a 15 per cent thermal substitution rate (TSR). Yet, the combined environmental benefits, ranging from GHG reductions and natural resource conservation to supporting municipal waste solutions, make co-processing a smart, pragmatic step toward cementing circularity in the industry.

Clinker Substitution and AFR
Reducing clinker usage remains one of the most impactful pathways for decarbonising cement. A report by Indian Cement Benchmarking mentions that India has lowered its national average clinker factor to around 0.68–0.70, compared to the global average of 0.75–0.77, with top producers pushing it further down to 0.65 or below using blended cements like Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). Beyond emission cuts,
clinker substitution conserves limestone, lowers production costs and reduces energy demand per tonne of cement produced.
The concept of industrial symbiosis enables industries to feed off each other’s by-products, creating value from what would otherwise be waste. A notable example is Denmark’s Kalundborg Eco-Industrial Park, where gypsum from a power plant is used in wallboard manufacturing, and fly ash and clinker by-products support road construction and cement production. This circular collaboration significantly enhances environmental and economic efficiency, encouraging resource sharing, cost-saving and reduced waste. In India, similar models can redefine material cycles between steel, power and cement clusters, leveraging by-products like slag, fly ash and effluent residues as valuable inputs.
“Collaboration begins with shared sustainability goals. Cement companies can work with traders to identify low-carbon alternatives, co-develop supplier standards and invest in pre-processing infrastructure. Long-term partnerships can unlock access to circular materials like biomass, construction waste and industrial residues, while also ensuring traceability and quality control across borders,” says Uttam Sur, Chief Sustainability and Security Officer, Valency International Pte.
Co-processing waste as alternative fuels and raw materials aligns economic viability with sustainability. According to ‘From Grey to Green – Decarbonising India’s Cement Industry,’ India’s Thermal Substitution Rate (TSR) has risen from one per cent in 2010 to around seven per cent, with some plants reaching TSR levels as high as 25 per cent to 35 per cent using Refuse-Derived Fuel (RDF), biomass, hazardous wastes and industrial residues. This shift reduces reliance on coal, curbs emissions and embeds a circular fuel-and-feedstock cycle within cement operations.
Expanding on this, data from Indian Cement Benchmarking 2023 shows an average TSR of seven per cent, with leading plants achieving up to 38 per cent TSR, and many targeting 20 per cent to 30 per cent per cent plus TSR in the near future. Embracing biomass, industrial waste and novel fuel mixes, these plants are setting the stage for a more resilient and sustainable fuel portfolio.

Quarry to Kiln
The cement industry’s transition from resource depletion to circular sourcing hinges on securing raw materials responsibly, from the quarry to the kiln. Sustainable sourcing not only mitigates ecological impact but also shields businesses from supply disruptions and volatile commodity prices. For instance, utilising locally available raw materials like Nimbahera stone can dramatically reduce transportation emissions and the environmental footprint associated with long-haul logistics. Nimbahera stone, a blue limestone prevalent in Rajasthan, is widely sourced for regional cement plants, exemplifying how proximity-to-resource offers both sustainability and economic benefits.
Clinker substitution further reinforces sustainable sourcing by curbing reliance on virgin limestone. A report by the Cement Manufacturers’ Association reveals that India’s clinker-to-cement ratio stands around 69.5 per cent, closely aligned with global top performers at 65 per cent, meaning nearly 30 per cent of material inputs derive from supplementary resources like fly ash and slag. Reducing clinker demand not only conserves natural resources but also cuts CO2 emissions, estimated at 0.83 tonnes per tonne of clinker displaced.
Beyond raw material sourcing, upstream innovations such as recycling spent refractories are gaining traction. A report in Indian Cement Review notes that leading firms like ACC and UltraTech have begun blending 30 per cent to 40 per cent spent refractories into raw meal, significantly reducing dependence on virgin inputs. This shift is projected to reduce refractory disposal costs by `15–20 crore annually, while enhancing thermal efficiency in
kiln operations.

Digital Technologies
The cement industry is increasingly leveraging digitalisation and artificial intelligence (AI) to unlock circular economy practices. Advanced AI- and IoT-powered process-control systems are instrumental in optimising production, minimising waste, enabling predictive maintenance and streamlining material flows, thus facilitating the integration of by-products like fly ash and slag back into the process. These smart systems also support emissions monitoring and ensure resource efficiency across operations.
Moreover, digital twins, which refers to virtual replicas of physical plant operations, allow operators to simulate and optimise process changes in real time. A report by KPMG illustrates how a digital twin of a raw mill can optimise energy usage by continuously modelling variable process parameters. Parallelly, AI-based ‘mine mix optimisers’ and fuel schedulers dynamically balance inputs to flatten energy loads and enhance material consistency.
These interventions not only elevate energy efficiency but also lay the groundwork for circularity-enabled production.

Waste Management
Partnerships between cement players and waste management firms are emerging as pivotal enablers of circularity. Indian digital recycling platforms like Recykal are transforming the supply-side value chain by connecting waste generators, collectors, and recyclers—thus ensuring a steady stream of alternate inputs into cement kilns. Recykal’s digital platform scaled rapidly—from recycling 30,000 tonnes of plastic in 2017 to over 200,000 tonnes by 2021—demonstrating the power of tech-enabled collaboration to feed circular processes.
On the ground, municipal collaborations are also gaining traction. For instance, the Haryana government recently sanctioned a `89.9 crore PPP to reclaim 14 lakh tonnes of legacy waste at the Bandhwari landfill, explicitly mandating the use of resulting refuse-derived fuel (RDF) by industrial users like cement plants. This public-private model repositions waste as feedstock and not as landfill fodder, shifting the circular sector into action.

Regulatory Push and Policy Support
Regulatory frameworks are emerging as powerful levers for circular economy adoption in India’s cement sector. The Perform, Achieve and Trade (PAT) scheme under India’s National Mission for Enhanced Energy Efficiency is a prime example. According to the Bureau of Energy Efficiency, cement plants participating in PAT cycles have consistently surpassed their energy-saving targets, achieving around 1.48 MTOE in Cycle I and 1.56 MTOE in
Cycle II—both significantly over their targets. Furthermore, the upcoming Carbon Credit Trading Scheme (CCTS) is expected to evolve from PAT, setting specific carbon intensity targets per tonne of cement and enabling tradable credits for greener performance. These market-linked incentives are nudging the industry to align energy efficiency initiatives with regulatory expectations.
Beyond energy-specific schemes, waste management rules underscore circular pathways like co-processing. The 2016 Solid Waste Management rules, and the Hazardous Waste Management standards, explicitly recognise co-processing in cement kilns—facilitating faster approvals provided emission standards are met, while enabling interstate waste movements through simplified protocols. Complementing these measures, the CII Waste Material Exchange portal offers a marketplace connecting waste generators with cement plants, fostering resource-sharing partnerships across sectors. Together, these policies and platforms are lowering institutional barriers and creating structured pathways for cement’s engagement in the circular economy.

Market Incentives and Green Financing
Financial mechanisms are pivotal in scaling circular and low-carbon transitions. According to a joint report by MUFG Bank and the Climate Bonds Initiative, India will need a staggering $ 1.3 trillion in cumulative green, social and sustainability-linked funding by 2030 to decarbonise energy-intensive sectors like cement and steel. Concrete proof of financial innovation’s potential is seen at UltraTech Cement, which secured $ 500 million in sustainability-linked loans in 2024, its second such financing, tying funding to ESG performance and green energy uptake. These instruments allow cement companies to raise capital while embedding sustainability targets within debt structures.
On the institutional front, green credit channels are emerging to support circular upgrades. Recently, the State Bank of India (SBI) signed a €100 million (`900 crore) green finance agreement with Agence Française de Développement (AFD), aimed at scaling up climate mitigation projects across India. SBI’s goal is to increase its green loan portfolio to 7.5 per cent to 10 per cent of domestic advances by 2030.
Meanwhile, MSMEs, often integral to cement value chains, stand to benefit from initiatives like MSE-SPICE and MSE-GIFT, which offer incentives and concessional financing for adopting circular economy and clean technology practices. These emerging financing tools make circular investments more accessible and create a viable economic framework for industry-wide scale-up.

Challenges Ahead
India’s journey toward circularity in cement hinges critically on building robust infrastructure and coordination across value chains. According to a CEEW study, transitioning to widespread industrial symbiosis, where waste streams are repurposed effectively, faces major logistical and infrastructure constraints, with fragmented collection systems, inconsistent waste segregation and limited pre-processing facilities hampering scale. Meanwhile, the country’s municipal solid waste (MSW) generation is already estimated at 62 million tonnes annually, of which only approximately 70 per cent is collected, and a mere 20 per cent processed, leaving the rest in landfills or open disposal, undermining cement sector efforts to source viable refuse-derived fuel (RDF).
Beyond infrastructure shortfalls, there is a pervasive awareness and standardisation gap that slows circular adoption in cement operations. Many industry players remain unconvinced about the quality and consistency of alternative raw materials like construction-demolition waste or spent refractories. In addition, while technical guidelines on co-processing exist, variance in enforcement, lack of uniform standards across states and lingering misconceptions about emissions compliance contribute to slow uptake. Overcoming these perceptual and regulatory asymmetries will require concerted efforts in training, stakeholder alignment and harmonised norms to ensure that circular practices are not just technically viable but trusted across the sector.

Conclusion
The cement industry’s embrace of circular economy principles marks a decisive shift from linear ‘produce–use–discard’ models toward regenerative resource use. By scaling co-processing of waste, clinker substitution, and industrial symbiosis, cement manufacturers are demonstrating that environmental responsibility and business competitiveness can go hand in hand. According to the International Finance Corporation (IFC), co-processing alone could help the sector reduce up to 15 per cent of its fossil fuel use in India, while clinker substitution strategies could curb emissions by 200–250 kg of CO2 per tonne of cement. These gains not only lower the industry’s carbon footprint but also unlock cost efficiencies and extend the lifespan of finite raw material reserves.
Looking ahead, the sector’s success in circular transitions will depend on three enablers: policy harmonisation, collaborative ecosystems and digital technologies. With regulatory frameworks tightening around waste management and carbon emissions, and with green financing mechanisms gaining traction, the cement industry has both the mandate and opportunity to lead by example. By forging stronger partnerships with waste managers, technology providers and policymakers, and by investing in AI-driven monitoring and resource optimisation, the industry can accelerate its path toward net-zero cement production. In doing so, it positions itself not just as a consumer of resources, but as a vital solution-provider in building a sustainable, circular economy.

– 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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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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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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