CCUS continues to attract bulk of investments from energy sector

Carbon capture, utilisation and storage (CCUS) adoption remains uneven across sectors, with current capacity concentrated in industries where capture is technically easier or already commercially proven. However, the energy sector continues to make significant investments in CCUS projects, says GlobalData

GlobalData’s Strategic Intelligence report, Carbon Capture and Storage, finds that natural gas processing continues to dominate active capacity because of its relatively concentrated CO₂ streams, while the upcoming pipeline is shifting toward hard-to-abate sectors and the power generation sector, where CCUS is being positioned as a route to reduce emissions.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, comments: “CCUS technologies are designed to capture CO₂ from point sources, such as flue gas emissions, to prevent it from being released into the atmosphere. In the oil and gas industry, CCUS is primarily used to remove CO₂ from natural gas at gas processing plants and LNG liquefaction terminals. Notably, the Terrel/Val Verde gas processing plants in the US were among the first to implement it at a commercial scale.”

Power generation expected to become the leading sector for upcoming CCUS capacity with 73 million tonnes per annum (mtpa) capacity in the pipeline that is expected to come online by 2030. This reflects rising electricity demand, the continued use of dispatchable thermal generation, and the need to extend the operating life of existing assets while reducing emissions. The technology has also gained significant attention in lowering the emission footprint during hydrogen production, particularly in refineries, petrochemical facilities, and fertiliser plants.

Currently, most captured CO₂ is utilized for enhanced oil recovery (EOR) within the oil and gas sector. However, the long-term potential of CCUS technology lies in the permanent storage of CO₂ in deep geological formations. Companies such as Occidental Petroleum, ExxonMobil, Equinor, and Eni are actively identifying and developing storage sites for this purpose. Additionally, captured CO₂ can be repurposed for commercial applications, including synthetic fuel production, beverage carbonation, concrete curing, and controlled-environment agriculture.

Puranik concludes: “The next phase of CCUS deployment is therefore likely to be shaped by two parallel drivers: near-term decarbonisation of large industrial emitters and longer-term demand for carbon removals. This is expanding adoption beyond natural gas processing into power, hydrogen, refining, cement, bioenergy, and direct air capture (DAC), although project execution remains dependent on policy support, storage access, and commercial viability.”