Carbon Capture in India: A Deep Patent Base and a Wide-Open Startup Field

What it is

Carbon capture and storage (CCS) is a set of technologies that trap CO₂ from large emission sources — power plants, cement kilns, steel mills — before it reaches the atmosphere. The captured CO₂ is compressed, transported, and injected deep underground into geological formations like saline aquifers or depleted oil reservoirs for permanent storage.

Carbon capture and utilization (CCU) takes a different route: the captured CO₂ is converted into products such as synthetic fuels, chemicals, plastics, or building materials. Direct air capture (DAC) pulls CO₂ straight from ambient air, not just from smokestacks. Together, these pathways are considered essential for decarbonising hard-to-abate industries and for achieving net-zero targets.

• Post-combustion capture: scrubs CO₂ from flue gas after fuel is burned, using chemical solvents, membranes, or solid sorbents.
• Pre-combustion capture: removes CO₂ before combustion, typically in gasification processes, leaving hydrogen-rich fuel.
• Direct air capture: uses chemical agents or mineralization to extract CO₂ from ambient air, independent of a point source.
• Utilization pathways: convert captured CO₂ into methanol, urea, polymers, carbonates for construction, or even food-grade products.

The value chain

The carbon capture value chain spans four stages, each with distinct economics and defensibility. Capture technology is the most IP-intensive segment, while transport and storage are infrastructure-heavy and often dominated by consortia or state-backed entities. Utilization offers the highest margin potential by turning waste CO₂ into revenue-generating products.

• Capture: Separation of CO₂ from industrial off-gases using solvents, sorbents, membranes, or cryogenics. High R&D intensity; defensibility lies in proprietary materials and process know-how. Global players include Graphyte, Captura, Heirloom.
• Transport: Movement of compressed CO₂ via pipelines, ships, or trucks. Capital-intensive network business; value accrues to operators with right-of-way and scale. Key projects: Northern Lights (Norway), Aramis (Netherlands), Denbury (US).
• Storage: Injection into deep saline aquifers or depleted reservoirs. Requires geological characterization and long-term monitoring. Often paired with transport; Northern Lights and East Coast Cluster are notable.
• Utilization: Conversion of CO₂ into fuels, chemicals, or building materials. High value-add and product differentiation. Startups like Neustark (mineralization into concrete) and Living Carbon (enhanced photosynthesis) are active.

Where it's heading

Globally, the CCUS market is projected at $5.82 billion in 2025 and could reach $17.75 billion by 2030, growing at 25% CAGR (MarketsandMarkets). The broader CCS market is estimated at $3.9 billion with a 7% CAGR (Grand View Research). The difference reflects the rapid expansion of utilization pathways.

India has moved from policy intent to budget commitment. The Union Budget 2026 allocated ₹20,000 crore (~$2.2 billion) over five years for CCUS across power, steel, cement, refineries, and chemicals (Forbes). NITI Aayog rolled out incentives covering 50–100% of project costs, and a national R&D roadmap was launched in late 2025 to scale lab technologies to industrial pilots (Reuters, Dastur Energy).

• Decarbonisation mandates are pushing CCS deployment in power and heavy industry globally (Grand View Research).
• Business models are shifting from full-chain mega-projects to modular, partial-chain and capture-as-a-service plays (Oxford Institute for Energy Studies).
• CCU could unlock a $4.4 trillion cumulative opportunity by 2050 if up to 27 Gt of CO₂ is utilized (World Economic Forum).
• India’s coal reliance — expected to persist for two decades — makes CCUS a strategic necessity, not just a climate option (Reuters).
• The US targets 50–52% emission cuts by 2030 with CCS as a pillar; similar regulatory tailwinds are emerging in Europe and Asia.

The opportunity in India

India’s carbon capture patent activity is rising — a strong signal given the 18-month publication lag that understates recent filings. Yet our data shows a thin layer of patent-holding startups: only 14 ventures hold patents mapped to carbon capture, while 62 deep-tech companies in our dataset reference the technology in their profiles. This gap between broad commercial interest and concentrated IP ownership points to a wide-open field for innovation-led entrants.

The government’s $2.2 billion CCUS scheme targets five hard-to-abate sectors where India has massive installed capacity — steel, cement, power, refining, and chemicals. Each of these verticals needs India-specific capture solutions that work with high-ash coal, high-temperature processes, and cost constraints that differ from Western markets. Direct air capture and CO₂-to-value utilization pathways remain especially nascent, with few Indian startups building proprietary technology.

Funding in the broader energy sector is robust — our data tracks 365 funded companies that have raised $2.7 billion in total — but carbon capture pure-plays are still rare. The notable exception is Carbon Clean, which raised $150 million and operates globally with an India footprint. The combination of policy push, rising patent filings, and a sparse startup landscape creates a first-mover window for founders who can bridge lab-scale IP to industrial deployment.

India signal: patents, startups, capital

Our dataset maps 52 patents to carbon capture technologies, with momentum rising — published filings are already up even before the last two years fully publish, indicating accelerating inventive activity. The dominant sector is energy.

We track 62 deep-tech companies in India whose profiles reference carbon capture. Among them, 14 startups hold at least one patent in the space. PI Green Innovations (Pune) leads with two patents; others like BATX Energies, Caliche, and Novonanmek Material Sciences hold one each. This suggests a landscape where many firms are active but few have built defensible IP moats.

In the broader energy sector, which encompasses carbon capture, our funding data shows 365 companies have raised a combined $2.7 billion, with a median round of $1.0 million. Notable raises include Carbon Clean ($150M, series D+), Hygenco ($105M, series C), and HLC Green Energy ($500M). While these are not all pure carbon capture plays, they signal investor appetite for decarbonisation technologies that carbon capture startups can tap.

In our data

Sources

• Carbon Capture | MIT Climate Portal ↗
• Understanding carbon capture and storage ↗
• Carbon Capture - an overview ↗
• Carbon Capture Supply Chain Report ↗
• Business models ↗
• Capture Carbon, Capture Value: An Overview of CCS Business Models ↗
• Carbon Capture & Storage Market Size to Reach USD 6.7 Billion by ... ↗
• Global Carbon Capture And Storage Market Size & Outlook ↗