Cement, Energy and Environment

44 CHALLENGES AND ROADMAP TO 2030 While there has been such progress, large- scale-up continues to be challenging. The major challenges are: • Economic and Technical Barriers: Most low- carbon technologies are still expensive. CCUS projects have significant capital and operating expenses, and there is not much commercial experience in cement. Electrified kilns and hydrogen systems are in their initial stages and demand enormous electricity (or H 2 inputs. Even blended cements and Alternative Fuel Replacement (AFR) may suffer supply-chain difficulties (e.g., consistent availability of waste fuel or SCMs) and need investment in new processing lines. Indian cement producers point out that alternative fuels and blended cement introduction has been “limited due to economic constraints.”. • Infrastructure and Regulation: There is currently no large-scale CO 2 transportation and storage infrastructure in India, and regulation over CO 2 pipes and reservoirs is in infancy. Although there is a market pull offered by the new CCTS, there is still required legal certainty (e.g., rules of liability for CO 2 storage). In the same manner, sound biomass or industrial waste supply chains to be used as fuels need to be established and would require alignment with agriculture and waste industries. • Market Demand: Demand for “green cement” is still just developing. Cement margins have historically been low, and end-users (builders, contractors) have been sensitive to price. Without incentives or mandates (e.g. government buying low-carbon concrete, or awarding “green points” for low-CO 2 material), firms might not be able to pass on the cost to consumers. • Energy Sources: India’s grid is greening, but cement factories will use more electricity if they electrify heat. Having access to clean power is essential. In addition, thermal coal itself is consumed in other industries; its future price and carbon tax prospects make fuel substitution strategies uncertain. • Organizational and Human Capacity: The shift involves retraining engineers, employing experts (in CO 2 technology, AI analytics, etc.), and dismantling organizational silos. Cement companies are already establishing in-house R&D or innovation cells, but mass up skilling is necessary. Roadmap to 2030: To meet its intermediate targets, India’s cement industry must rapidly deepen deployment of proven measures and bring emerging ones into play. Key actions include: