Coal gasification and carbon management in India: Can CCUS offset rising emissions from the energy transition?
businesstoday.inIndia is turning to coal gasification as a bridge fuel after the West Asia conflict disrupted LNG supplies. The government has announced a Rs 37,500 crore incentive scheme for coal gasification projects to cut import dependence. But coal gasification produces more CO2 than conventional coal plants, according to the Centre for Science and Environment. Without carbon capture and storage, this strategy could lock in high-carbon infrastructure for decades. Corporates like Jindal Steel are already switching to syngas from domestic coal for steelmaking, while Mahindra and UltraTech are shifting their energy mix. The article examines whether carbon management solutions like CCUS can reduce the impact of rising emissions as India pursues energy security alongside its 2035 climate targets. It raises a key question for the carbon markets community: will policy support for CCUS keep pace with the coal gasification push?