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A joint study by Climate Policy Initiative and Dastur Energy indicates that carbon capture, utilization, and storage (CCUS) could be the least expensive solution for decarbonizing the steel industry in India. The estimated investment for enabling integrated steel plants to adopt CCUS is between $12-14 billion over the next 25 years, which is more economically viable than hydrogen or natural gas-based direct reduced iron methods.

India's heavy reliance on the coal-based blast furnace process contributes to nearly 370 million tonnes of CO2 emissions annually. The study anticipates an initial investment of $200 million for demonstration projects within five years, followed by $2.5-3.0 billion over the next decade.

Although producing crude steel costs will increase by $72-80 per tonne, this remains lower than the projected costs from hydrogen routes. The Indian government supports these efforts through initiatives like the National Mission on Green Steel.