India offers large incentives for carbon capture as coal remains a major part of the energy mix

India is planning to launch a national initiative to capture carbon dioxide with significant government incentives as it tries to balance its rising energy demands with climate goals, while still relying heavily on coal.

Rajnath Ram said that the initiative, which aims to promote carbon capture, utilisation, and storage (CCUS), could provide funding support ranging between 50% and 100% for selected projects.

The CCUS technology captures CO2 at the point of emissions and stores it underground.

The official stated that "these incentives will help the industries adopt carbon-capture technologies and integrate with coal-based systems", at a summit on coal organised by the Indian Chamber of Commerce.

Ram stated that India's electricity demand is increasing and coal will remain an important part of India's energy mix in the next 20 years.

We cannot be subjective when it comes to coal. "The question is how sustainable we can use coal."

He added that the commercialisation of this technology remains a challenge.

India aims to increase its non-fossil energy capacity to 500 GW in 2030. However, coal is still a key component of its energy security. The government intends to increase the coal-based power capacity by 97GW by 2035. This will bring it to 307GW, ensuring round-the-clock electricity.

Carbon capture and gasification are also being explored by the government to reduce emissions.

Globally, several nations have begun projects in CCUS Technology and the International Energy Agency states that the technology can be a crucial role in achieving the global climate goals. Sethuraman N.R. (Reporting) (Editing by Jane Merriman).

(source: Reuters)