Global CCS capacity set to quintuple by 2030, driven by policy momentum

Commercial carbon capture facilities surge 54 per cent YoY as governments deploy tax credits, industrial hubs and cross-border storage agreements to accelerate decarbonisation of hard-to-abate sectors

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THE global carbon capture and storage industry has reached a pivotal inflection point, with 77 commercial facilities now operational worldwide, capturing 64 million tonnes of CO2 annually (mtpa); a 54 per cent increase in operating facilities and 25 per cent rise in capture capacity within just twelve months.

An additional 44 mtpa of capture capacity currently sits under construction, positioning the sector for a nearly 70 per cent expansion in operational capacity as these projects come online over the coming years.

According to the Global CCS Institute's Global Status of CCS 2025 report, the total development pipeline has expanded to 734 facilities from 628 the previous year, reflecting how “governments and companies are staying the course in progressing this critical technology despite geopolitical headwinds in some regions”.

The institute's analysis projects operating capacity could reach 337 mtpa by 2030, more than five times current levels, representing a compound annual growth rate approaching 40 per cent.

POLICY ARCHITECTURE DRIVES COMMERCIAL DEPLOYMENT

The direct correlation between supportive policy frameworks and project proliferation has become unmistakable across all major deployment regions.

In the US, the 45Q tax credit continues to anchor investment despite broader policy uncertainty, with the recent One Big Beautiful Bill Act establishing parity between dedicated geological storage and enhanced oil recovery at $85 per tonne for point-source capture and $180 per tonne for direct air capture.

Fifteen US states have enacted carbon management legislation, with Louisiana, North Dakota, West Virginia and Wyoming securing primacy for CO2 injection permitting from the Environmental Protection Agency, whilst Arizona and Texas await final approval.