India's cement sector is the world's second-largest, producing approximately 380 MT/year and growing at 5–7% annually to support the National Infrastructure Pipeline. The sector emits approximately 300 MT of CO₂ per year — roughly 12% of India's total. Cement is led by UltraTech (120 MT capacity), Shree Cement, ACC/Holcim India, Ambuja, Dalmia Bharat, and JK Cement — all of which have made voluntary Net Zero commitments and face growing CBAM and investor ESG pressure.
Cement's CO₂ challenge is unique: 60% comes from limestone calcination (CaCO₃ → CaO + CO₂) — a chemical reaction that cannot be eliminated by any efficiency or fuel-switching measure. The remaining 40% comes from fuel combustion in the kiln — which can be partially decarbonised by fuel switching to biomass or hydrogen. But for the 60% calcination fraction, carbon capture is the only option.
Annual cement production — world's 2nd largest, growing 5–7%/yr
Sector CO₂/year — 12% of India's total emissions
Share from unavoidable limestone calcination — requires capture to eliminate
Major cement clusters in Rajasthan, AP, Karnataka, MP, and Maharashtra
Post-combustion amine capture (PCC) applied to cement kiln exhaust (14–33% CO₂) is the most mature capture route. Higher CO₂ concentration than coal power flue gas improves PCC economics. Water availability and ambient temperature are critical site-specific constraints in Indian cement regions — particularly Rajasthan and AP.
Oxy-fuel combustion — converting the kiln burner to operate on pure oxygen — produces a concentrated CO₂ stream without chemical separation. Heidelberg Materials Brevik (Norway) is the world's first full-scale cement carbon capture installation and the primary reference design for Indian cement oxy-fuel feasibility. Partial oxy-fuel (calciner only) captures the 60% calcination CO₂ at 35–45% lower capital cost than full kiln conversion.
NCM has completed preliminary capture screening assessments for 12 major Indian cement plants across 6 states — ranking each on CO₂ volume, kiln technology, water availability, storage proximity, and CBAM/ESG exposure. Three plants in Rajasthan have been identified as Tier 1 priority candidates for immediate bankable feasibility studies — with dry-process kilns above 2 MT/year capacity, proximity to Deccan Traps basalt storage, and ownership by companies with active Net Zero commitments.
India's cement exporters face growing CBAM exposure as the EU expands covered product categories. The EU's current CBAM focus on bulk cement (clinker) will progressively extend to processed cement and concrete products — directly affecting India's export-oriented cement companies. NCM's CBAM modelling for India's top 5 cement exporters indicates that CCUS investment becomes commercially justified without subsidy when CBAM price exposure is fully accounted for at EU ETS prices above €55/tonne.
NCM is developing India's first bankable cement CCUS project — a pre-FEED study for a 2.5 MT/year kiln in Rajasthan with post-combustion capture and Deccan Traps basalt mineralisation storage. The project incorporates a water-minimised PCC design, integrated CO₂ utilisation in Rajasthan construction concrete, and a CBAM compliance documentation system. DFI co-financing from ADB's Industry Decarbonisation Programme is being sought.
NCM is also engaged with the Cement Manufacturers' Association of India (CMA) on a sector-level CCUS roadmap — targeting 15% of India's cement capacity with CCUS by 2030 and 50% by 2040. This roadmap will serve as the primary technical input to the Ministry of Industry's cement decarbonisation strategy.
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.