Aaron Foyer
Director, Research
Aaron Foyer
Director, Research
The US has a decades-long head start in carbon capture, thanks to its large industrial base, an extensive carbon pipeline network and long experience injecting carbon dioxide underground for enhanced oil recovery.
More recently, the 45Q tax credit has helped strengthen the economics of CCUS, helping to turn that existing infrastructure and expertise into the world’s largest concentration of operating projects.
The surprising role of Brazil: Brazil, not China or Europe, is the world’s second-largest sequesterer of carbon dioxide.
Where is the industry momentum?
Following years of excitement, carbon capture is facing an uncertain future. However, the industry is increasingly shifting from individual capture projects toward shared transport and storage networks, with North America and Europe leading much of the current buildout.
That being said, China and the Middle East are increasingly important growth markets, with CCS expanding beyond traditional natural gas processing into industries which are tougher to decarbonize, including cement, chemicals and low-carbon fuels.
Future growth estimates: The Global CCS Institute counted 77 operating facilities and another 47 under construction in 2025, with total capture capacity across operating and development projects reaching 513 million tonnes per annum. That represents a dramatic increase from today's roughly 64 Mtpa of operating capacity.
Although the International Energy Agency cautions that permitting, construction delays and policy uncertainty have pushed some planned CCS projects further toward 2035.
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