India Unveils Carbon Capture Incentives Amid Coal Use

• India to launch a nationwide carbon capture, utilisation, and storage (CCUS) programme
• Despite aiming for 500 GW of non-fossil fuel capacity by 2030
• Authorities are exploring CCUS integration with coal gasification and synthetic natural gas production

India is ready to release a nationwide carbon capture programme with sizeable government backing as the country seeks to balance its increasing energy demands with its climate obligations, while still relying heavily on coal. According to Rajnath Ram, Adviser for Energy at NITI Aayog.

The programme will support carbon capture, utilisation and storage (CCUS), and could offer financial support in the range of 50% to 100% for successful projects.

CCUS is the capture of the carbon dioxide emissions from source emissions produced in industrial processes, or from the atmosphere, and then storing that carbon underground so that it isn't vented into the atmosphere.

At a coal summit organised by the Indian Chamber of Commerce, the official stated, "These incentives will help industries adopt carbon capture technologies and integrate them with coal-based energy systems".

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This new programme comes as India's electricity continues to create new demand and coal is forecasted to remain predominant in the energy mix for at least the next two decades. "We cannot be subjective about coal. The question is how sustainably we can use it", said Ram.

He stated that transforming coal into synthetic natural gas could reduce India's economys imports of natural gas nearly by half—although commercialising this development is an uphill battle.

While India's target is ambitious—adding 500 GW of non-fossil fuel capacity by 2030—coal will always ensure security of supply. Authorities expect to add 97 GW of coal-based generation by 2035, increasing total production to around 307 GW.

Authorities are also considering carbon capture in conjunction with coal gasification projects to mitigate emissions. Worldwide, CCUS is being adopted faster than IEA experts would have guessed, and is vital in helping governments drive climate-change goals.

natural gas, non-fossil fuel capacity, IEA experts, coal summit, carbon dioxide emissions, carbon capture