India's aluminium sector — led by Hindalco (Aditya Birla Group), Vedanta (BALCO and NALCO), and NALCO (public sector) — produces approximately 5 MT/year of primary aluminium and is a significant exporter. Aluminium smelting is among the most electricity-intensive industrial processes: approximately 14–16 MWh per tonne of aluminium. India's smelters primarily use captive coal power — generating the majority of their CO₂ emissions from this power rather than the smelting process itself.
Aluminium's process CO₂ emissions come from two sources: the electrolysis of alumina using carbon anodes (Hall-Héroult process) — where the carbon anode is consumed and CO₂ is produced as a chemical by-product; and perfluorocarbon (PFC) emissions from anode effects. Post-combustion PCC on the captive coal power plant flue gas is the primary CCUS pathway — applicable to all Indian aluminium smelters with captive generation above 500 MW.
India's annual aluminium production — significant export volume with CBAM exposure
Electricity per tonne of aluminium — one of the world's most energy-intensive processes
Share of Indian aluminium sector CO₂ from captive coal power generation
CBAM-exposed export fraction — Hindalco and NALCO are Europe's significant suppliers
Post-combustion PCC on captive coal power plant flue gas is the dominant CCUS pathway for Indian aluminium smelters. Hindalco's Mahan smelter (MP) has 900 MW captive generation; Vedanta's BALCO (CG) has 540 MW; NALCO's Angul (Odisha) has 1,200 MW captive power. These captive plants are equivalent in scale to medium-sized coal power stations — all viable candidates for PCC retrofit using the same assessment methodology as the coal power sector.
The process CO₂ from anode consumption in the Hall-Héroult cells is a smaller but concentrated stream (typically 8–15% CO₂) that can also be captured with PCC at lower cost than the more dilute captive power flue gas. Some European aluminium producers are evaluating inert anode technology that eliminates process CO₂ entirely — but this technology is at TRL 5–6 and not yet commercially viable for Indian deployment timelines.
India's aluminium exporters face growing CBAM exposure. Hindalco is a significant supplier to European automotive aluminium markets, and NALCO exports primary aluminium billets. The carbon intensity of Indian aluminium — driven by captive coal power at 2.4–3.0 t CO₂/MWh — is substantially higher than European aluminium produced with hydropower or renewable electricity, creating a significant CBAM differential. NCM's CBAM assessment for one major Indian aluminium exporter shows that CCS investment on the captive coal power plant pays back within 12 years from CBAM avoidance alone, at EU ETS prices above €55/tonne.
The co-location of Indian aluminium smelters with coal power captive generation — in MP (Hindalco Mahan), Chhattisgarh (BALCO), and Odisha (NALCO, Hindalco Hirakud) — places them in or adjacent to the Gondwana basin and Mahanadi basin geological provinces, which have potential for onshore saline aquifer CO₂ storage. NCM's preliminary storage assessment for the Odisha aluminium belt suggests that the Mahanadi basin may have suitable saline aquifer storage formations within pipeline range of NALCO Angul and Hindalco Hirakud.
NCM's aluminium sector advisory mirrors the coal power methodology for captive plant PCC assessment — plant-level flue gas characterisation, steam extraction integration analysis, water balance, compression requirements, and storage corridor identification. The additional element specific to aluminium is the anode process gas capture opportunity — which offers a smaller but lower-cost capture stream that can be developed ahead of or alongside the captive power PCC project.
CBAM compliance documentation for aluminium exporters is a specific advisory service NCM provides — developing the ISO 14064-compliant carbon accounting framework, the monitoring, reporting, and verification (MRV) plan for CCS-attributed emission reductions, and the CBAM declaration documentation that European customs authorities will require from 2026.
Whether you are a government body seeking policy advice, an industrial company facing CBAM exposure, or an investor seeking CCUS project opportunities — our team is ready to engage.