The scale of carbon capture, utilisation and storage (CCUS) continues to grow, but much more needs to be done if the technology can make its required impact on net zero targets.
Excess carbon dioxide (CO₂) in the atmosphere is one of the key drivers of climate change. CCUS works by either capturing CO₂ generated by industrial processes or by removing it directly from the atmosphere or the sea, in order to reduce the impact of greenhouse gas emissions on climate change. In particular CCUS is useful to mitigate the impact of hard-to-decarbonise industries.
The International Energy Authority’s (IEA) said that in recent years, the CCUS sector has seen renewed momentum, in part driven by new business models organised around large CCUS hubs and networks. However, progress remains slower than many would like.
The latest update of the IEA's CCUS Projects Database adds developments that have taken place between the first quarter of 2024 and the first quarter of 2025 but shows only modest changes across the project pipeline.
According to the IEA data, by the first quarter of 2025 there was 50 million tonnes (Mt) of CO₂ capture and storage capacity in operation, slightly up on the 47.4 Mt in operation in the first quarter of 2024.
By 2030, capture capacity is now expected to reach around 430 Mt CO₂ per year based on the current pipeline of projects – slightly down on the prediction made last year. In particular, in this year’s update, the capture capacity of projects in early stages of the planning process was down compared with previous estimates.
The total is still well below the 1 Gt of CO₂ which needs to be captured and stored in the Net Zero Emissions by 2050 scenario which sets a pathway for the global energy sector to achieve net zero CO₂ emissions by 2050.
“While current trends are insufficient to align with a pathway towards net zero emissions by mid-century, there are recent signs of important progress. Around the world, developers have taken strides to move projects forward, including by breaking ground on a number of first-of-a-kind facilities in their respective sectors or regions,” IEA’s analysts said.
If all projects currently under construction were completed, it would almost double existing capacity, they said.
According to the IEA, eight new CCUS projects began operating in 2024. But it notes that these were relatively small-scale, with capture or storage capacities as low as 5,000 tonnes of CO₂ per year. Over half of currently operational capture capacity is at natural gas processing facilities, and with more projects ahead including a CCUS implementation at a major liquefied natural gas plant in Indonesia, natural gas processing will continue to account for a large share of CCUS projects.
The IEA said CCUS industry is set to continue to develop in 2025 as major projects become operational, including one in Norway which will capture 400,000 tonnes of CO₂ per year.
However, the analysts noted that 80% of capture capacity that could become operational by 2030 is in North America or Europe. China and the Middle East account for a quarter of capacity that is either operational or under construction.
As more projects do come online, increasing demand for CO₂ capture equipment could put pressure on existing supply chains, which might allow some businesses to seize a new advantage, the IEA added.
“Currently, manufacturing for CCUS is bespoke: individual sites are fitted with their own capture equipment, and no mass manufacturing takes place. As the market grows, however, existing supply chains will need to adapt to demand from a greater number of facilities. This could present an economic opportunity for countries that step in and scale manufacturing efforts,” the IEA researchers said.
Carbon capture remains an evolving technology. Former UK Prime Minister Tony Blair recently highlighted the central role that carbon capture could play in the battle against climate change. “At present, carbon capture is not commercially viable despite being technologically feasible – but policy, finance and innovation would change this,” he said.
More on carbon capture utilisation and storage (CCUS)
- Advances in carbon capture and utilisation: A new SCI virtual collection
- Carbon capture: $100 million competition reveals winning projects
- Product Carbon Footprint Guideline aims at Scope 3 reporting
- Carbon capture: Major bio-CCS project gets the go ahead
- 27 hydrogen projects shortlisted for government funding
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