Role of Carbon Capture, Utilization, and Storage in Decarbonizing India’s Steel Sector

The report evaluates CCUS as a primary decarbonization lever for India's steel sector, specifically targeting the emission-intensive BF-BOF route. It identifies single-point pre-combustion capture with gas conditioning as the most cost-effective technical approach, with a net CO2 abatement cost of USD 5560/tCO2. The study maps seven steel clusters in Eastern India and finds significant geological storage potential, primarily in deep saline aquifers (estimated at 62 Gt). To overcome high capital costs, the report proposes novel financing instruments like Partial Deep Discount Carbon STRIPS (PDDCS) bonds and the establishment of a Carbon Capture Finance Corporation (CCFC). It concludes that a breakeven carbon price of approximately INR 2,099 (USD 25)/tCO2 is necessary for project financial viability in a mature market.

• Single-point pre-combustion capture using gas conditioning (water gas shift and CO2 pressure swing adsorption) is more efficient and economical than multi-point post-combustion capture, potentially reducing Scope 1 emissions in the BF-BOF route by 50% and lowering emissions from 1.95 to 1.0 tCO2 per tonne of hot-rolled coil.
• The net CO2 abatement cost for single-point pre-combustion capture is estimated between USD 5560/tCO2, whereas multi-point post-combustion capture is significantly more expensive at USD 100110/tCO2.

APA

Mukherjee, A., Chatterjee, S., Kumar, P., Maity, A., & Chakraborty, D. (2025). Role of Carbon Capture, Utilization, and Storage in Decarbonizing India’s Steel Sector. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CCUS-in-Indian-Steel-Sector_Final.pdf

Chicago

Mukherjee, Atanu, Saurav Chatterjee, Pratyush Kumar, Arunava Maity, and Debarka Chakraborty. Role of Carbon Capture, Utilization, and Storage in Decarbonizing India’s Steel Sector. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CCUS-in-Indian-Steel-Sector_Final.pdf.

Wikipedia

{{cite report |last1=Mukherjee |first1=Atanu |last2=Chatterjee |first2=Saurav |last3=Kumar |first3=Pratyush |last4=Maity |first4=Arunava |last5=Chakraborty |first5=Debarka |title=Role of Carbon Capture, Utilization, and Storage in Decarbonizing India’s Steel Sector |publisher=Climate Policy Initiative |date=December 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CCUS-in-Indian-Steel-Sector_Final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mukherjee2025role, author = {Mukherjee, Atanu and Chatterjee, Saurav and Kumar, Pratyush and Maity, Arunava and Chakraborty, Debarka}, title = {{Role of Carbon Capture, Utilization, and Storage in Decarbonizing India’s Steel Sector}}, institution = {Climate Policy Initiative}, year = {2025}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/CCUS-in-Indian-Steel-Sector_Final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }