India is preparing to launch a nationwide program to accelerate carbon capture, utilisation and storage (CCUS) technologies, with government support covering as much as 50% to 100% of the costs for selected projects. The initiative is designed to help the country meet its growing power needs while staying on track with its climate commitments, despite its continued dependence on coal.
Rajnath Ram, energy adviser at NITI Aayog, announced the plan at a coal summit hosted by the Indian Chamber of Commerce, stressing that carbon capture must be integrated with coal-based power generation. “These incentives will help industries adopt CCUS solutions and use coal more sustainably,” he said.
CCUS technologies capture carbon dioxide either at the source of emission or directly from the atmosphere, storing it underground to prevent its release. Globally, many nations have already begun similar projects, and the International Energy Agency considers CCUS a key tool for achieving net-zero targets.
Coal will remain a central part of India’s power sector for at least the next 20 years, Ram added. The government expects to raise coal-fired capacity by 97 GW by 2035, reaching about 307 GW overall, to ensure continuous power supply. At the same time, India is working to expand its non-fossil fuel capacity to 500 GW by 2030.
Ram also noted that turning coal into synthetic natural gas could cut the country’s gas imports by almost half, though scaling up this technology commercially is still a challenge. Authorities are exploring ways to pair carbon capture with gasification projects to further reduce emissions.
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News sourced from: https://www.reuters.com/sustainability/boards-policy-regulation/india-offer-large-carbon-capture-incentives-coal-remains-major-part-energy-mix-2025-09-11/
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