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New incentives aim to boost carbon capture as India balances coal and energy transition

15 Sep 2025 15:46 reported by Margaret Yeh

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India will launch a national carbon capture plan with government incentives. According to Rajnath Ram, the Adviser (Energy) at NITI Aayog, the plan will offer 50% to 100% financial support to promote CCUS technologies (carbon capture, utilisation and storage). Rajnath Ram said the incentive plan will increase industries' willingness to use CCUS and combine with coal-based energy systems.

The need for electricity in India is rising and coal is still a majority part of the energy for the following 20 years. He also mentioned that the way to convert coal to gas could cut around 50% imported gas, while although the coal-to-gas commercialisation still takes time to develop. 

The government also seeks some ways to integrate carbon capture with gasification to offset carbon emissions, trying to balance, under the fact that it relies on coal, between increasing power demand and achieve its energy transition goals.

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