Cement, Energy and Environment

40 India is the second-largest cement producer in the world, with around 8% of the total installed capacity. In 2019–20, it manufactured cement amounting to approximately 334 million tonnes. Though critical to infrastructure, the cement industry is often called a “hard-to-abate” sector: it is responsible for approximately 5–7% of India’s CO 2 emissions (global cement accounts for ~7–8% of CO 2 ) and releases approximately 0.68 t CO 2 per tonne of cement[IEA, 2023]. Decreasing this footprint is essential if India is to achieve its 2030 climate goals (45% emissions intensity reduction by 2030 and net-zero by 2070). CURRENT EMISSIONS FOOTPRINT Cement production releases CO 2 both through CARBON CAPTURE, UTILIZATION AND STORAGE (CCUS) CCUS is crucial for cement: models indicate that even with maximum energy efficiency and fuel switching, cement cannot achieve net- zero without process CO 2 capture[Global CCS Institute, 2024]. India’s decarbonisation roadmap (NITI Aayog) lists CCUS as one of the “levers” and expects CCUS to contribute a significant share of the sector’s emissions reductions to net-zero. CCUS includes capturing CO 2 from kiln flue gases and either storing it permanently underground (geological sequestration) or utilizing it to produce products (CCU). Several Indian companies are spearheading CCUS solutions. To illustrate, Dalmia Cement has made proposals (through a 2019 MoU) for a the burning of fossil fuels and the calcination of limestone (releasing CO 2 ). In 2020 the industry’s emissions intensity was approximately 0.68 tCO 2 per tonne of cement. With increasing demand (per-capita consumption is increasing), overall emissions are expected to rise unless decarbonization picks up pace. The government- industry action plan aims for reducing intensity to 0.56 t CO 2 /t by 2030. India’s per-capita cement consumption (~280 kg per capita) is still below the world average (560 kg/ capita), suggesting additional potential for growth – but this only makes taking action sooner more necessary. BREAKTHROUGH TECHNOLOGIES FOR DECARBONIZATION 500,000 t/yr capture facility, and CCU projects by L&T/JSW. CCUS, however, is energy- and capital- intensive and India is as yet formulating regulatory frameworks to support it. Significantly, the revised Energy Conservation Act (2022) and the new Carbon Credit Trading Scheme (CCTS) offer economic incentives to CCUS (projects can accrue tradable carbon credits), but they also stress the importance of legal clarity regarding CO 2 storage. Strong governmental backing – i.e., carbon credit incentives, a carbon-capture finance company, will be necessary in order to rally the $30+ billion necessary for big CCUS in heavy industry. ALTERNATIVE FUELS & RAW MATERIALS (AFR) AND CLINKER SUBSTITUTION Substituting coal and petroleum-based fuels with alternative raw materials and fuels (AFR) can