### The Rising Significance of Carbon Capture, Utilisation, and Storage (CCUS)
Carbon capture, utilisation, and storage (CCUS) technologies are emerging as vital components of global efforts to achieve carbon neutrality. The urgency for these technologies is underscored in discussions at events like India Energy Week, where experts converge to assess the landscape of CCUS and the road ahead. It is clear that the effectiveness of CCUS hinges not only on the technologies themselves but also on economic viability, access to financing, and the overall bankability of projects.
### Progress in India: From Concept to Execution
Reflecting on the journey of CCUS in India, Om Prakash Sinha, Director (Exploration) at ONGC, noted a remarkable transformation over the past two years. “I recall that two years ago in India, I was part of a panel on CCUS. The topic then was how to initiate, design, and conceive pilot projects. Today, we are discussing pilots on a planetary scale.” This shift signifies a growing commitment and accelerated pace of progress, showcasing India’s readiness to tackle climate challenges head-on.
With India positioned as the third-largest CO₂ emitter, accounting for a staggering 2.65 gigatonnes annually, the urgency to expand CCUS implementation cannot be overstated. Sinha articulated a vision where CCUS serves as a “bridge” connecting today’s carbon-intensive reality with a sustainable future, emphasizing its crucial role in the nation’s decarbonisation journey leading towards net-zero emissions by 2070.
### The Essential Role of CCUS in Industrial Growth
Deepak Gupta, Director (Projects) at GAIL, reiterated the significance of CCUS for successful decarbonisation. He stated unambiguously, “Without CCUS, our decarbonisation journey will not be complete.” As industrial sectors such as steel, cement, oil, and gas continue to expand, emissions from these hard-to-abate sectors are projected to rise. Gupta highlighted that GAIL’s CO₂ emissions could escalate from about 3 million tonnes per annum to between 12 to 13 million tonnes as new projects commence. This stark increase illustrates the pressing necessity of scaling CCUS technologies to mitigate future emissions.
### Economic Viability: The Backbone of CCUS Initiatives
Economics plays a foundational role in the success of CCUS, as emphasized by Atanu Mukherjee, CEO of Dastur Energy. “You can have the best technology, but if the economics don’t work, it is difficult to implement and carry it through.” This statement encapsulates the reality that financial sustainability is pivotal for any CCUS project. Mukherjee pointed out the necessity of optimising costs across the entirety of the CCUS value chain. Without robust risk management strategies and accessible finance, the deployment of necessary infrastructure at an affordable cost of capital remains a formidable challenge.
### The Cost Factor: A Persistent Challenge
Alex Grant, Senior Vice President and UK Country Manager at Equinor, echoed the sentiments expressed about economic factors, reaffirming that cost remains a critical barrier to the widespread adoption of CCUS technologies. The financial aspect of CCUS will ultimately dictate how effectively projects can be scaled and how quickly they can adapt to the pressing timeline for achieving carbon neutrality.
### The Road Ahead: Securing Financing and Project Bankability
As the dialogue on CCUS continues to evolve, stakeholders must grapple with financial frameworks that support large-scale implementations. The convergence of governmental support, private investment, and technological innovation could forge pathways necessary for sustainable CCUS initiatives. Each player’s role and technological advancements will be crucial in bridging the gap between current practices and future needs.
This exploration highlights how CCUS is not merely a technological initiative but a complex interplay of economics, industry needs, and collaborative efforts. The progress witnessed in India serves as both an inspiration and a roadmap for other nations aiming for carbon neutrality through innovative solutions.