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Will PPPs in affordable housing succeed?

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Urbanisation is central to a country’s economy – and in India, the urbanisation rate corresponds to 60 per cent of the country’s GDP. For smoother transformation of a developing nation like India, the need of the hour is to manage the process of urbanisation. The rapid pace of urbanisation has given rise to many grave issues – one of them being housing shortage.
Urban land in India, constituting 3.1 per cent of the country’s land area, presents a complex situation where high urban densities co-exist with sub-optimal utilisation (India Habitat Report, 2016). The inward migration of massive chunks of population from rural areas and peri-urban areas to urban areas in search of livelihood and better living conditions is continually exacerbating the shortage of housing in our cities.
As a result, a new socio-economic category known as the ‘urban poor’ has emerged. The Center and States have taken up the challenge of providing ‘Housing for All’ in India’s cities and towns, and several housing policies and missions have been launched to provide shelter to this new category of citizens. Building bye laws and building codes have been modified, loan disbursals have been eased, and interest subsidies have been provided in the banking financial system to reach out to this class of the population.
Though the recent census data highlights that the housing shortage rate in India’s urban areas declined from 1.63 million to 0.39 million in 2011; nevertheless, the larger problem persists. In India, private sector players, which include developers and housing finance companies, tended to primarily target housing for the HIG (higher income group), resulting in sustained supply and competition in this segment.
While the government is, on the other hand, focused on providing shelter to the poor and EWS (economically weaker sections), the results of these efforts have been largely insufficient. Also, the housing requirements of the LIG (lower income groups) are being grossly neglected, and there is a serious dearth of affordable housing to cater to this segment of society. By combining the strengths of private players with those of the public sector, the challenges of providing affordable housing can be overcome. Superior outcomes are achievable via case-specific PPP structures with appropriate allocation of risks and value creation.Mammoth housing shortage
Thanks to incessant demand, the housing sector in India is one of the fastest-growing industries in the country. It is one of the biggest employers, and has direct or indirect impacts on all sectors of the economy. In fact, the real estate industry is the third-largest contributor to the Indian economy, and the housing sector contributes 85 per cent of the total real estate activity. As per JLL estimates, the urban housing shortage till 2022 stands at 15.97 million units. By government estimates, the shortage in 2012 stood at 18.78 million units, of which, 96.5 per cent (estimated by the end of 2017) is in the LIG and EWS combined.
A report by the Technical Group on Housing Shortage (TG-12) mentions that states like Uttar Pradesh, Maharashtra, West Bengal and Andhra Pradesh have higher housing shortage, accounting for to 7.61 million units. It is correctly inferred that though there is significant shortage of LIG and EWS category housing (17.96 million units in 2012), the supply in urban areas – which largely caters to MIG and HIG category buyers – represents a significant inventory overhang and is not selling well at all.
The government’s mission of ‘Housing for All by 2022′ seeks to provide a credible and viable answer to this pressing question, and focuses on single-window clearances, construction of 84,460 affordable houses in 5 states of India, and various other efforts to create low-cost housing. These initiatives have definitely had a positive impact on the housing sector. However, not much of a dent in the overall affordable housing shortage has so far been made. According to a report by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), urban housing stock has increased from 52.06 million to 78.48 million units in the past decade. Another review observes that the skyrocketing prices of housing stock and congestion of stock in limited areas have contributed significantly to keeping a majority of the urban poor homeless.
The Union Budget of India 2017-2018 has led impetus to affordable housing and the infrastructure segment, and the announced tax benefits and proposed changes in the long-term capital gains tax will boost players’ confidence in these projects. This is an important step to attracting private players to this segment and thereby improving the supply of low-cost houses in India. Drawing from global cues
The challenge of providing affordable or inclusive housing exists all across the world. A distinct ‘housing trap’ exists as even rental housing is becoming increasingly expensive, with house ownership becoming a distant dream, insufficient social housing creation and the number of wait-listed applications growing every year in many countries.
The housing crisis is certainly escalating. To resolve it, many developed countries have become proactive with subsidies and incentives for providing housing to the less economically privileged segment:
In Singapore, 82 per cent of the population resides in social housing. The country’s housing policy emphasises the ownership rather than the rental model, and provides consummate subsidies to first-time house buyers. Another notable practice can be observed in Seoul, the capital of South Korea, where older housing stock becomes available to low income households by redeveloping it in appropriate locations under the concept of inclusive planning. In Philippines, a penalty is imposed if land is kept idle for too long instead of making it available for housing development.
In Spain, FSI incentives have enabled developers to sell affordable units at a 1/3rd price compared to the prevailing market rates. PPP policy
To attract private developers to affordable housing, the Indian government recently drafted a new policy on ‘Public Private Partnerships for Affordable Housing’ in an attempt to overcome the challenges and maximise financial gains by tapping the potential of such projects. The new policy has devised various models of PPP to achieve these gains and moderate associated risks.
The models are prepared for two cases – the first being for instances where the Government leases the land, and the second for when a private developer has to identify the land. The second case is further bifurcated into two scenarios. In the first scenario, development is carried out in partnership (the Analytic Hierarchy Process or AHP system) and in the second, when development is carried out on the basis of the Credit Linked Subsidy Scheme (CLSS). The policy also talks about several other features like cross subsidy, fast approvals, etc. If both the market risks and sales are high, this policy will ensure a successful PPP model in the affordable housing segment.Success stories
Affordable housing refers to housing units that the section of society whose income is below the median household income can afford. While the term ‘Affordable Housing’ has been bandied about extensively and this segment is inherently very promising, the multiple associated concerns have in the past caused most developers to divest in this sector.
The biggest challenge in this sector is implementation against a backdrop of a very unclear policy framework. Other constraints are the lack of supply of developable land at reasonable prices, higher construction costs, unsupportive development control norms – and, not least of all, lack of easy access to home finance for the low income groups.
Though the Government is working hard towards addressing these issues by taking strategic steps, the policy framework must be strengthened further to stimulate growth and deliver sufficient relief to LIG home buyers. Implementation must be simplified and clarified if more investors and developers are to be attracted to this sector. At the end of the day, affordable housing provides a plethora of opportunities to all stakeholders, and the private sector can bridge the deficit by introducing innovative construction practices which can reduce costs and improve project financing, marketing and sales.
Even before the ‘PPP Policy on Affordable Housing’ was announced, many Indian states had policies which attempted to effectively implement affordable housing schemes. In the 2001-2006 policy period, states like Maharashtra, Uttar Pradesh, Gujarat and Andhra Pradesh made first attempts to formulate township policies which included provisions for affordable housing, as well.
Since then, there have been many changes and reforms in these policies. For instance, Andhra Pradesh’s latest affordable housing policy suggests four different models in which private developers are encouraged via fast-tracked clearances and approvals, FSI incentives, timely payments and the flexibility for developers to determine the sale price of the affordable houses (with approval from the authority). It also suggests a rental housing model wherein rent would be fixed by the Government.
Benefits such as exemptions in service tax, trade license fees, stamp duty etc. are provided for affordable rental housing units. Andhra Pradesh’s development control regulations also include an allocation of 10 per cent of total built-up area for LIG and EWS housing in all townships, group housing and gated community projects.
Alternately, the regulations call for allocation of proportionate land to the Government, to be used for public welfare in the form of housing or civic infrastructure, urban open spaces, etc.
In Maharashtra, a special Township Policy was formulated in 2004 to attract private players to cater to the demand for LIG and MIG housing. However, this resulted in only 17 projects in 11 years (2004-2015). After the state took a serious look at this shortfall in implementation, amendments were proposed in the policy. The new ‘Housing Policy and Affordable Housing Plan’ unveiled in 2015 targets 50,000-100,000 affordable houses to be constructed every township, each township must have an area of 40 hectares, and there can be as much as 100 per cent of permissible FSI if the area has a sufficient potential and can potentially achieve realistic targets.
Also, ‘in-situ’ slum redevelopment projects with private participation in the state provided 1,592 dwelling units for eligible slum dwellers by leveraging the locked potential of public land under slums and including them as formal urban settlements. The project was executed in eight packages consisting of eight locations in Ahmedabad city (Gujarat) and provided 1,592 dwelling units of about 27 sq. carpet area with basic civic infrastructure like water supply, sewerage system, internal road connectivity with street lights, etc. 83 eligible slum dwellers owning commercial spaces were each allotted shops of 15 sq m carpet area.
This project’s USP was that additional FSI and Transferable Development Rights (TDR) were generated and awarded to the private partner, which made the slum redevelopment project financially viable. The private partner provided the eligible slum dwellers rental transit accommodation for the entire construction period at Rs 6,000 per month.Take away
The success of affordable housing initiatives depends on the proactive involvement of various stakeholders, including private sector players, operating with a clear roadmap of roles and responsibilities. Innovative PPP models must be explored to yield win-win scenarios for all involved partners and encourage private developers to participate more in this competitive market.
As per the PPP policy, both ownership and rental models backed by an institutional structure should result in the right kind of housing supply to reach its designated end users effectively. States should have their own township policies earmarking dedicated zones for affordable housing. Incentives in the form of land lease, FSI, reduction in stamp duty and exemption from other associated taxes will significantly reduce project costs.
With the deployment of the Real Estate (Regulation and Development) Act [RERA] in 2016, which also focuses on timely completion of projects and adoption of innovative technologies like prefab and pre-cast housing, there is a hope for effectively covering the demand/supply gap. Unlocking older housing stock by redeveloping dilapidated structures and adding them to the overall supply of affordable housing will help in a big way. If the PPP policy is able to regularise, monitor and encompass the all-important principles of inclusiveness, equity, environmental sustainability and transparency, they will certainly succeed.Authors: – The article is authored by A Shankar, National Director and Head of Operations – Strategic Consulting, JLL India.

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Concrete

Fornnax Unveils the World’s Largest NPD and Demo Centre to Accelerate Global Recycling Innovation

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A 12-acre innovation campus enables Fornnax to design, test and validate high-performance recycling solutions at global standards in record time.

Fornnax has launched one of the world’s largest New Product Development (NPD) centres and demo plants, spanning more than 12 acres, marking a major step toward its vision of becoming a global recycling technology leader by 2030. Designed to accelerate real-world innovation, the facility will enable faster product design cycles, large-scale performance validation, and more reliable equipment for high-demand recycling applications.

At the core of the new campus is a live demo plant engineered to support application-specific testing. Fornnax will use this facility to upgrade its entire line of shredders and granulators—enhancing capacity, improving energy efficiency, and reducing downtime. With controlled test environments, machines can be validated for 3,000 to 15,000 hours of operation, ensuring real-world durability and high availability of 18–20 hours per day. This approach gives customers proven performance data before deployment.

“Innovation in product development is the key to becoming a global leader,” said Jignesh Kundariya, Director and CEO of Fornnax. “With this facility, we can design, test and validate new technologies in 6–8 months, compared to 4–5 years in a customer’s plant. Every machine will undergo rigorous Engineering Build (EB) and Manufacturing Build (MB) testing in line with international standards.”

Engineering Excellence Powered by Gate Review Methodology

Fornnax’s NPD framework follows a structured Gate Review Process, ensuring precision and discipline at every step. Projects begin with market research and ideation led by Sales and Marketing, followed by strategic review from the Leadership Team. Detailed engineering is then developed by the Design Team and evaluated by Manufacturing, Service and Safety before approval. A functional prototype is built and tested for 6–8 months, after which the design is optimised for mass production and commercial rollout.

Open-Door Customer Demonstration and Material Testing

The facility features an open-door demonstration model, allowing customers to bring their actual materials and test multiple machines under varied operating conditions. Clients can evaluate performance parameters, compare configurations and make informed purchasing decisions without operational risk.

The centre will also advance research into emerging sectors including E-waste, cables, lithium-ion batteries and niche heterogeneous waste streams. Highly qualified engineering and R&D teams will conduct feasibility studies and performance analysis to develop customised solutions for unfamiliar or challenging materials. This capability reinforces Fornnax’s reputation as a solution-oriented technology provider capable of solving real recycling problems.

Developing Global Recycling Talent

Beyond technology, the facility also houses a comprehensive OEM training centre. It will prepare operators and maintenance technicians for real-world plant conditions. Trainees will gain hands-on experience in assembly, disassembly and grinding operations before deployment at customer sites. Post-training, they will serve as skilled support professionals for Fornnax installations. The company will also deliver corporate training programs for international and domestic clients to enable optimal operation, swift troubleshooting and high-availability performance.

A Roadmap to Capture Global Demand

Fornnax plans to scale its offerings in response to high-growth verticals including Tyre recycling, Municipal Solid Waste (MSW), E-waste, Cable and Aluminium recycling. The company is also preparing solutions for new opportunities such as Auto Shredder Residue (ASR) and Lithium-Ion Battery recovery. With research, training, validation and customer engagement housed under one roof, Fornnax is laying the foundation for the next generation of recycling technologies.

“Our goal is to empower customers with clarity and confidence before they invest,” added Kundariya. “This facility allows them to test their own materials, compare equipment and see real performance. It’s not just about selling machines—it’s about building trust through transparency and delivering solutions that work.”

With this milestone, Fornnax reinforces its long-term commitment to enabling industries worldwide with proven, future-ready recycling solutions rooted in innovation, engineering discipline and customer collaboration.

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Concrete

Balancing Rapid Economic Growth and Climate Action

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Dr Yogendra Kanitkar, VP R&D, and Dr Shirish Kumar Sharma, Assistant Manager R&D, Pi Green Innovations, look at India’s cement industry as it stands at the crossroads of infrastructure expansion and urgent decarbonisation.

The cement industry plays an indispensable role in India’s infrastructure development and economic growth. As the world’s second-largest cement producer after China, India accounts for more than 8 per cent of global cement production, with an output of around 418 million tonnes in 2023–24. It contributes roughly 11 per cent to the input costs of the construction sector, sustains over one million direct jobs, and generates an estimated 20,000 additional downstream jobs for every million tonnes produced. This scale makes cement a critical backbone of the nation’s development. Yet, this vitality comes with a steep environmental price, as cement production contributes nearly 7 per cent of India’s total carbon dioxide (CO2) emissions.
On a global scale, the sector accounts for 8 per cent of anthropogenic CO2 emissions, a figure that underscores the urgency of balancing rapid growth with climate responsibility. A unique challenge lies in the dual nature of cement-related emissions: about 60 per cent stem from calcination of limestone in kilns, while the remaining 40 per cent arise from the combustion of fossil fuels to generate the extreme heat of 1,450°C required for clinker production (TERI 2023; GCCA).
This dilemma is compounded by India’s relatively low per capita consumption of cement at about 300kg per year, compared to the global average of 540kg. The data reveals substantial growth potential as India continues to urbanise and industrialise, yet this projected rise in consumption will inevitably add to greenhouse gas emissions unless urgent measures are taken. The sector is also uniquely constrained by being a high-volume, low-margin business with high capital intensity, leaving limited room to absorb additional costs for decarbonisation technologies.
India has nonetheless made notable progress in improving the carbon efficiency of its cement industry. Between 1996 and 2010, the sector reduced its emissions intensity from 1.12 tonnes of CO2 per ton of cement to 0.719 tonnes—making it one of the most energy-efficient globally. Today, Indian cement plants reach thermal efficiency levels of around 725 kcal/kg of clinker and electrical consumption near 75 kWh per tonne of cement, broadly in line with best global practice (World Cement 2025). However, absolute emissions continue to rise with increasing demand, with the sector emitting around 177 MtCO2 in 2023, about 6 per cent of India’s total fossil fuel and industrial emissions. Without decisive interventions, projections suggest that cement manufacturing emissions in India could rise by 250–500 per cent by mid-century, depending on demand growth (Statista; CEEW).
Recognising this threat, the Government of India has brought the sector under compliance obligations of the Carbon Credit Trading Scheme (CCTS). Cement is one of the designated obligated entities, tasked with meeting aggressive reduction targets over the next two financial years, effectively binding companies to measurable progress toward decarbonisation and creating compliance-driven demand for carbon reduction and trading credits (NITI 2025).
The industry has responded by deploying incremental decarbonisation measures focused on energy efficiency, alternative fuels, and material substitutions. Process optimisation using AI-driven controls and waste heat recovery systems has made many plants among the most efficient worldwide, typically reducing fuel use by 3–8 per cent and cutting emissions by up to 9 per cent. Trials are exploring kiln firing with greener fuels such as hydrogen and natural gas. Limited blends of hydrogen up to 20 per cent are technically feasible, though economics remain unfavourable at present.
Efforts to electrify kilns are gaining international attention. For instance, proprietary technologies have demonstrated the potential of electrified kilns that can reach 1,700°C using renewable electricity, a transformative technology still at the pilot stage. Meanwhile, given that cement manufacturing is also a highly power-intensive industry, several firms are shifting electric grinding operations to renewable energy.
Material substitution represents another key decarbonisation pathway. Blended cements using industrial by-products like fly ash and ground granulated blast furnace slag (GGBS) can significantly reduce the clinker factor, which currently constitutes about 65 per cent in India. GGBS can replace up to 85 per cent of clinker in specific cement grades, though its future availability may fall as steel plants decarbonise and reduce slag generation. Fly ash from coal-fired power stations remains widely used as a low-carbon substitute, but its supply too will shrink as India expands renewable power. Alternative fuels—ranging from biomass to solid waste—further allow reductions in fossil energy dependency, abating up to 24 per cent of emissions according to pilot projects (TERI; CEEW).
Beyond these, Carbon Capture, Utilisation, and Storage (CCUS) technologies are emerging as a critical lever for achieving deep emission cuts, particularly since process emissions are chemically unavoidable. Post-combustion amine scrubbing using solvents like monoethanolamine (MEA) remains the most mature option, with capture efficiencies between 90–99 per cent demonstrated at pilot scale. However, drawbacks include energy penalties that require 15–30 per cent of plant output for solvent regeneration, as well as costs for retrofitting and long-term corrosion management (Heidelberg Materials 2025). Oxyfuel combustion has been tested internationally, producing concentrated CO2-laden flue gas, though the high cost of pure oxygen production impedes deployment in India.
Calcium looping offers another promising pathway, where calcium oxide sorbents absorb CO2 and can be regenerated, but challenges of sorbent degradation and high calcination energy requirements remain barriers (DNV 2024). Experimental approaches like membrane separation and mineral carbonation are advancing in India, with startups piloting systems to mineralise flue gas streams at captive power plants. Besides point-source capture, innovations such as CO2 curing of concrete blocks already show promise, enhancing strength and reducing lifecycle emissions.
Despite progress, several systemic obstacles hinder the mass deployment of CCUS in India’s cement industry. Technology readiness remains a fundamental issue: apart from MEA-based capture, most technologies are not commercially mature in high-volume cement plants. Furthermore, CCUS is costly. Studies by CEEW estimate that achieving net-zero cement in India would require around US$ 334 billion in capital investments and US$ 3 billion annually in operating costs by 2050, potentially raising cement prices between 19–107 per cent. This is particularly problematic for an industry where companies frequently operate at capacity utilisations of only 65–70 per cent and remain locked in fierce price competition (SOIC; CEEW).
Building out transport and storage infrastructure compounds the difficulty, since many cement plants lie far from suitable geological CO2 storage sites. Moreover, retrofitting capture plants onto operational cement production lines adds technical integration struggles, as capture systems must function reliably under the high-particulate and high-temperature environment of cement kilns.
Overcoming these hurdles requires a multi-pronged approach rooted in policy, finance, and global cooperation. Policy support is vital to bridge the cost gap through instruments like production-linked incentives, preferential green cement procurement, tax credits, and carbon pricing mechanisms. Strategic planning to develop shared CO2 transport and storage infrastructure, ideally in industrial clusters, would significantly lower costs and risks. International coordination can also accelerate adoption.
The Global Cement and Concrete Association’s net-zero roadmap provides a collaborative template, while North–South technology transfer offers developing countries access to proven technologies. Financing mechanisms such as blended finance, green bonds tailored for cement decarbonisation and multilateral risk guarantees will reduce capital barriers.
An integrated value-chain approach will be critical. Coordinated development of industrial clusters allows multiple emitters—cement, steel, and chemicals—to share common CO2 infrastructure, enabling economies of scale and lowering unit capture costs. Public–private partnerships can further pool resources to build this ecosystem. Ultimately, decarbonisation is neither optional nor niche for Indian cement. It is an imperative driven by India’s growth trajectory, environmental sustainability commitments, and changing global markets where carbon intensity will define trade competitiveness.
With compliance obligations already mandated under CCTS, the cement industry must accelerate decarbonisation rapidly over the next two years to meet binding reduction targets. The challenge is to balance industrial development with ambitious climate goals, securing both economic resilience and ecological sustainability. The pathway forward depends on decisive governmental support, cross-sectoral innovation, global solidarity, and forward-looking corporate action. The industry’s future lies in reframing decarbonisation not as a burden but as an investment in competitiveness, climate alignment and social responsibility.

References

  • Infomerics, “Indian Cement Industry Outlook 2024,” Nov 2024.
  • TERI & GCCA India, “Decarbonisation Roadmap for the Indian Cement Industry,” 2023.
  • UN Press Release, GA/EF/3516, “Global Resource Efficiency and Cement.”
  • World Cement, “India in Focus: Energy Efficiency Gains,” 2025.
  • Statista, “CO2 Emissions from Cement Manufacturing 2023.”
  • Heidelberg Materials, Press Release, June 18, 2025.
  • CaptureMap, “Cement Carbon Capture Technologies,” 2024.
  • DNV, “Emerging Carbon Capture Techniques in Cement Plants,” 2024.
  • LEILAC Project, News Releases, 2024–25.
  • PMC (NCBI), “Membrane-Based CO2 Capture in Cement Plants,” 2024.
  • Nature, “Carbon Capture Utilization in Cement and Concrete,” 2024.
  • ACS Industrial Engineering & Chemistry Research, “CCUS Integration in Cement Plants,” 2024.
  • CEEW, “How Can India Decarbonise for a Net-Zero Cement Industry?” (2025).
  • SOIC, “India’s Cement Industry Growth Story,” 2025.
  • MDPI, “Processes: Challenges for CCUS Deployment in Cement,” 2024.
  • NITI Aayog, “CCUS in Indian Cement Sector: Policy Gaps & Way Forward,” 2025.

ABOUT THE AUTHOR:
Dr Yogendra Kanitkar, Vice President R&D, Pi Green Innovations, drives sustainable change through advanced CCUS technologies and its pioneering NetZero Machine, delivering real decarbonisation solutions for hard-to-abate sectors.

Dr Shirish Kumar Sharma, Assitant Manager R&D, Pi Green Innovations, specialises in carbon capture, clean energy, and sustainable technologies to advance impactful CO2 reduction solutions.

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Concrete

Carbon Capture Systems

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Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, explores the challenges and strategic considerations for cement industry as it strides towards Net Zero goals.

The cement industry does not need a reminder that it is among the most carbon-intensive sectors in the world. Roughly 7–8 per cent of global carbon dioxide (CO2) emissions are tied to cement production. And unlike many other heavy industries, a large share of these emissions come not from fuel but from the process itself: the calcination of limestone. Efficiency gains, fuel switching, and renewable energy integration can reduce part of the footprint. But they cannot eliminate process emissions.
This is why carbon capture and storage (CCS) has become central to every serious discussion
about cement’s pathway to Net Zero. The industry already understands and accepts this challenge.
The debate is no longer whether CCS will be required—it is about how fast, affordable, and seamlessly it can be integrated into facilities that were never designed for it.

In many ways, CCS represents the ‘last mile’of cement decarbonisation. Once the sector achieves effective capture at scale, the most difficult part of its emissions profile will have been addressed. But getting there requires navigating a complex mix of technical, operational, financial and regulatory considerations.

A unique challenge for cement
Cement plants are built for durability and efficiency, not for future retrofits. Most were not designed with spare land for absorbers, ducting or compression units. Nor with the energy integration needs of capture systems in mind. Retrofitting CCS into these existing layouts presents a series of non-trivial challenges.
Reliability also weighs heavily in the discussion. Cement production runs continuously, and any disruption has significant economic consequences. A CCS retrofit typically requires tie-ins to stacks and gas flows that can only be completed during planned shutdowns. Even once operational, the capture system must demonstrate high availability. Otherwise, producers may face the dual cost of capture downtime and exposure to carbon taxes or penalties, depending on jurisdiction.
Despite these hurdles, cement may actually be better positioned than some other sectors. Flue gas from cement kilns typically has higher CO2 concentrations than gas-fired power plants, which improves capture efficiency. Plants also generate significant waste heat, which can be harnessed to offset the energy requirements of capture units. These advantages give the industry reason to be optimistic, provided integration strategies are carefully planned.

From acceptance to implementation
The cement sector has already acknowledged the inevitability of CCS. The next step is to turn acceptance into a roadmap for action. This involves a shift from general alignment around ‘the need’ toward project-level decisions about technology, layout, partnerships and financing.
The critical questions are no longer about chemistry or capture efficiency. They are about the following:

  • Space and footprint: Where can capture units be located? And how can ducting be routed in crowded plants?
  • Energy balance: How can capture loads be integrated without eroding plant efficiency?
  • Downtime and risk: How will retrofits be staged to avoid prolonged shutdowns?
  • Financing and incentives: How will capital-intensive projects be funded in a sector with
    tight margins?
  • Policy certainty: Will governments provide the clarity and support needed for long-term investment
  • Technology advancement: What are the latest developments?
  • All of these considerations are now shaping the global CCS conversation in cement.

Economics: The central barrier
No discussion of CCS in the cement industry is complete without addressing cost. Capture systems are capital-intensive, with absorbers, regenerators, compressors, and associated balance-of-plant representing a significant investment. Operational costs are dominated by energy consumption, which adds further pressure in competitive markets.
For many producers, the economics may seem prohibitive. But the financial landscape is changing rapidly. Carbon pricing is becoming more widespread and will surely only increase in the future. This makes ‘doing nothing’ an increasingly expensive option. Government incentives—ranging from investment tax credits in North America to direct funding in Europe—are accelerating project viability. Some producers are exploring CO2 utilisation, whether in building materials, synthetic fuels, or industrial applications, as a way to offset costs. This is an area we will see significantly more work in the future.
Perhaps most importantly, the cost of CCS itself is coming down. Advances in novel technologies, solvents, modular system design, and integration strategies are reducing both capital requirements
and operating expenditures. What was once prohibitively expensive is now moving into the range of strategic possibility.
The regulatory and social dimension
CCS is not just a technical or financial challenge. It is also a regulatory and social one. Permitting requirements for capture units, pipelines, and storage sites are complex and vary by jurisdiction. Long-term monitoring obligations also add additional layers of responsibility.
Public trust also matters. Communities near storage sites or pipelines must be confident in the safety and environmental integrity of the system. The cement industry has the advantage of being widely recognised as a provider of essential infrastructure. If producers take a proactive role in transparent engagement and communication, they can help build public acceptance for CCS
more broadly.

Why now is different
The cement industry has seen waves of technology enthusiasm before. Some have matured, while others have faded. What makes CCS different today? The convergence of three forces:
1. Policy pressure: Net Zero commitments and tightening regulations are making CCS less of an option and more of an imperative.
2. Technology maturity: First-generation projects in power and chemicals have provided valuable lessons, reducing risks for new entrants.
3. Cost trajectory: Capture units are becoming smaller, smarter, and more affordable, while infrastructure investment is beginning to scale.
This convergence means CCS is shifting from concept to execution. Globally, projects are moving from pilot to commercial scale, and cement is poised to be among the beneficiaries of this momentum.

A global perspective
Our teams at Stantec recently completed a global scan of CCS technologies, and the findings are encouraging. Across solvents, membranes, and
hybrid systems, innovation pipelines are robust. Modular systems with reduced footprints are
emerging, specifically designed to make retrofits more practical.
Equally important, CCS hubs—where multiple emitters can share transport and storage infrastructure—are beginning to take shape in key regions. These hubs reduce costs, de-risk storage, and provide cement producers with practical pathways to integration.

The path forward
The cement industry has already accepted the challenge of carbon capture. What remains is charting a clear path to implementation. The barriers—space, cost, downtime, policy—are real. But they are not insurmountable. With costs trending downward, technology footprints shrinking, and policy support expanding, CCS is no longer a distant aspiration.
For cement producers, the decision is increasingly about timing and positioning. Those who move early can potentially secure advantages in incentives, stakeholder confidence, and long-term competitiveness. Those who delay may face higher costs and tighter compliance pressures.
Ultimately, the message is clear: CCS is coming to cement. The question is not if but how soon. And once it is integrated, the industry’s biggest challenge—process emissions—will finally have a solution.

ABOUT THE AUTHOR:
Nathan Ashcroft, Director, Strategic Growth, Business Development, and Low Carbon Solutions – Stantec, holds expertise in project management, strategy, energy transition, and extensive international leadership experience.

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