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Policy is the central fulcrum for CCUS success

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CCUS is positioned as the only scalable pathway for India’s cement industry to achieve deep decarbonisation. Lovish Ahuja, Chief Sustainability Officer, Dalmia Cement (Bharat) explores a balanced approach combining utilisation with long-term storage.

CCUS is emerging as a critical lever for deep decarbonisation in the cement industry, especially as traditional efficiency measures reach their limits. In this interaction, Lovish Ahuja, Chief Sustainability Officer, Dalmia Cement (Bharat), shares insights on India’s CCUS readiness, key challenges, and the path from pilots to large-scale adoption.

How critical is CCUS to achieving deep decarbonisation in cement compared to alternative levers like clinker substitution and energy transition?
Deep decarbonisation in the cement industry is uniquely challenging because most emissions stem from calcination—which inherently releases carbon dioxide. This means that even a fully renewable powered cement plant would continue to generate substantial process related CO2 emissions. In India, the industry has already achieved meaningful reductions through improved energy efficiency, increased use of alternative fuels, and expanded adoption of Secondary Cementitious Materials (SCMs) such as fly ash and slag. However, these interventions are nearing their technical and economic limits due to the fundamental chemistry and process requirements of cement production. Given these constraints, Carbon Capture, Utilisation, and Storage (CCUS) emerges as the only scalable and durable pathway to push emissions below the 350–400 kg CO2 per tonne threshold and enable deeper, sector wide decarbonisation. For India’s large and growing cement capacity, CCUS becomes indispensable for aligning the industry with long term national and global climate goals.

What stage of CCUS readiness is the Indian cement sector currently at—pilot, demonstration, or early commercial adoption?
India’s cement sector CCUS landscape remains nascent, with activity yet to reach genuine pilot or demonstration scale. While government led initiatives have announced targeted testbeds and several producers are exploring capture technologies, no integrated, full scale CCUS project has reached financial closure or commercial operation. Even so, recent years have seen meaningful progress in building domestic engineering capability, adapting capture technologies to Indian flue gas conditions, and improving clarity on utilisation and storage pathways. In contrast, several international first mover projects already have mechanically complete or operational capture units. These offer useful benchmarks, but replication in India requires context specific engineering to accommodate local constraints such as power reliability, water availability, high dust loads, and cluster based transport and storage logistics. The key barrier now is not technical feasibility but the financial ecosystem—demanding stronger government support through grants, carbon market mechanisms, and risk sharing frameworks.
In the near term, 1–2 tonne per day CCU testbeds are expected to come online with support from the Department of Science & Technology (DST). A proactive, mission mode approach from the government will be essential to accelerate deployment and move the sector toward large scale commercial readiness.

What are the biggest technical challenges of integrating carbon capture into existing Indian kiln systems without disrupting productivity?
One of the major challenges in deploying CCUS at cement plants is the significant space requirement. Most brownfield expansion sites—and even many greenfield facilities—are already tightly configured. With capacity expected to grow over the next 30–40 years, finding adequate space for capture trains, blowers, pre treatment units, compression systems, and intermediate CO2 storage becomes extremely difficult.
A second constraint is input gas quality. Cement flue gas carries high dust loads along with SOx, NOx, and other trace elements, all of which accelerate solvent or membrane degradation. This necessitates complex and costly pre treatment before capture can begin. Utilities present a third major challenge. Current carbon capture technologies demand substantial heat and power, yet cement plants typically operate without surplus steam or electricity. Since CCUS would significantly increase total energy demand—most of which would need to come from renewable sources—ensuring a stable and adequate energy supply becomes a major hurdle. Finally, once CO2 is captured, large scale transport, storage, or utilisation remains a technically and logistically demanding challenge.

How does the high cost of CCUS impact cement pricing, and who ultimately bears this cost—the producer, policymaker, or consumer?
CCUS significantly shifts the cost curve for cement production. Beyond carbon capture itself, the added requirements for compression, purification, transport, and storage introduce substantial capital and operating costs. Depending on the technology pathway and site conditions, the fully loaded cost of CCUS can more than double the price of low carbon cement compared with conventional production. For a commodity sector with thin margins, absorbing or passing through such costs is extremely challenging without external financial support. Experiences from advanced markets explain how large scale CCUS deployment has been possible there. In Europe, cement producers benefit from free EU ETS allowances, access to the EU Innovation Fund for large scale projects, low cost renewable power, and policy mechanisms that support price premiums for green or low carbon materials. These instruments collectively bridge upfront capital needs and early stage learning costs. Yet even with this extensive support, CCUS projects remain uncommon—illustrating the scale of the challenge for India, where enabling frameworks are still evolving and markets are highly price sensitive.
That said, there are pockets where cost pass through is feasible. In premium housing, using low carbon or net zero materials typically raises overall project costs by only 2 per cent to 3 per cent. This suggests that the luxury and high value real estate segment could serve as an early adopter—creating the first demand signal needed to scale CCUS enabled cement and build broader market acceptance.

What role do carbon utilisation pathways (such as concrete curing, fuels, or chemicals) realistically play versus long-term geological storage in India?
Utilisation is attractive because it converts a liability into a long term business opportunity. CO2 cured concrete products, synthetic fuels, methanol, and carbonates are among the promising utilisation pathways. In India, industrial symbiosis with refineries, fertiliser plants, and chemical industries can absorb part of the captured CO2, and these avenues should be prioritised to drive early commercial viability. Precast curing also offers a practical near term option, as carbon can be mineralised within controlled logistics and at relatively low cost. However, scale remains a challenge: a single large cement plant emits 1.5–2 million tonnes of CO2 annually—far beyond what current utilisation markets can absorb. Meanwhile, fuels and chemical pathways are energy intensive and require inputs such as green hydrogen, which remain uncompetitive without fiscal support. For these reasons, utilisation alone cannot deliver
Net Zero; CO2 storage will need to serve as the backbone, with utilisation playing an important but supporting role.
On the storage side, India has credible geological options. Offshore saline aquifers, mature oil and gas fields, and basalt formations such as the Deccan Traps offer significant CO2 storage potential. Strategically mapping cement clusters to nearby storage basins can reduce logistics complexity and make CCUS deployment more feasible. The pragmatic approach is clear: utilise where it is easy and economical, store where it is necessary.

How important is government policy support—carbon markets, incentives, or mandates—in making CCUS commercially viable for Indian cement plants?
Policy is the central fulcrum for CCUS success globally, and India is no exception. CCUS requires investment well beyond what market demand alone can support, making grants, fiscal incentives, and robust carbon market mechanisms essential to transition projects from strong environmental concepts to financially bankable solutions. Clear standards are equally critical—covering storage regulations, permitting processes, transport frameworks, CCU product specifications, removal of market barriers, and supportive tax structures. Together, these elements form the foundational prerequisites for CCUS project realisation and scale up. India has begun this journey from a promising starting point. The country’s lead policy think tank, NITI Aayog, has already convened national level workshops, developed detailed policy recommendations, and is progressing toward a dedicated CCUS Mission. Such coordinated policy action will be pivotal in accelerating India’s CCUS ecosystem and enabling commercial deployment at scale.

Can CCUS be scaled across mid-sized and older plants, or will it remain viable only for large, new-generation integrated facilities?
In our view, early CCUS projects will logically cluster around large, modern cement plants, where space constraints are minimal and process as well as energy integration can be optimised. These facilities offer lower incremental costs for integration and better energy efficiency, while their scale naturally improves the economics of carbon capture—positioning them as ideal anchor points for shared CO2 transport and storage infrastructure.
Mid sized and older plants can be considered in later phases, once the value chain is established and sufficient local experience has been built.
However, if older facilities are planning major refurbishment, that window provides an opportunity to incorporate CCUS friendly design choices from the outset, improving long term readiness and reducing retrofit complexity.

Over the next decade, do you see CCUS becoming a competitive advantage or a regulatory necessity for Indian cement manufacturers?
The trajectory of CCUS adoption will depend heavily on policy direction, market sentiment, and the pace of technological maturity. Early movers stand to benefit if green procurement strengthens and embodied carbon performance begins to attract measurable and rewarded premiums. As India progresses toward its Net Zero 2070 target, CCUS will gradually shift from an optional initiative to a necessary compliance requirement. Companies
that invest early—through pilots, supply chain partnerships, and capability building—will be better positioned to optimise cost, execution timelines, and regulatory alignment when mandates and incentives eventually converge.
CCUS should be viewed as both a shield and a sword. It acts as a shield by future proofing assets against long term climate and regulatory risks, and a sword in markets where compliance remains mandatory but enabling support systems are limited. India likely has a 15–20 year window before such pressures fully materialise—time that the cement industry must use to build technical readiness, operational know how, and strategic preparedness for the moment when CCUS becomes unavoidable.

Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

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Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

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Concrete

WCA Welcomes SiloConnect as associate corporate member

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

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Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

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TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

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