Despite federal policy volatility under recent administrations, carbon capture and storage (CCS) initiatives in the U.S. have seen significant growth, with new projects advancing across multiple states and attracting over $1.8 billion in private and public funding since 2023. The sector is proving resilient amid political headwinds.
- 23 large-scale carbon capture projects are now active or in development in the U.S.
- Annual CO2 capture capacity exceeds 45 million metric tons across new projects.
- Private investment in CCS rose 37% from 2023 to 2025.
- The 45Q tax credit offers $85 per metric ton for captured and stored CO2.
- The Gulf Coast CCS hub project will capture 12 million tons annually starting 2026.
- Over 20 power plants are integrating carbon capture retrofits into their operations.
Carbon capture projects are defying expectations, expanding rapidly even as federal climate policy fluctuates. At least 23 new large-scale CCS facilities are now in active development or operation, up from just 8 in 2022. These projects, concentrated in Texas, Louisiana, and Wyoming, are designed to capture more than 45 million metric tons of CO2 annually—equivalent to removing over 9 million passenger vehicles from the road each year. The resilience comes as federal support for clean energy has faced repeated reversals. Despite the rollback of key environmental regulations and reduced incentives during the previous administration, private investment in CCS has increased by 37% since 2023. Major energy firms including ExxonMobil, Chevron, and Occidental Petroleum have committed $1.2 billion to new capture infrastructure, citing long-term regulatory stability and the potential for tax credits under the 45Q program, which offers $85 per metric ton for CO2 stored underground. Market analysts note that the growth of CCS is less about political consensus and more about economic pragmatism. Industrial emitters, particularly in cement, steel, and power generation, face tightening emissions standards but lack viable alternatives. CCS has become a critical tool for meeting compliance thresholds. The U.S. Department of Energy has approved $600 million in grants for four new regional CCS hubs, with the first phase of the Gulf Coast Carbon Transport and Storage project expected to begin operations in 2026, capturing 12 million tons of CO2 annually. The sector's momentum is reshaping energy investment patterns. While renewable deployment remains strong, carbon capture is now viewed as a bridge technology capable of reducing emissions in hard-to-abate industries. Investors and utilities alike are adjusting strategies, with over 20 major power plants now incorporating CCS retrofits into long-term plans. This shift signals a pragmatic pivot toward hybrid decarbonization, blending renewables with technological solutions as climate goals intensify.