From ambition to action: carbon capture at a turning point

As governments tighten climate rules and investors demand cleaner energy, carbon capture, utilisation and storage (CCUS) is increasingly seen as essential to meeting net-zero targets.

Stricter emissions regulations, mandatory methane reporting, and growing attention to climate finance ahead of COP29 have created favourable conditions for the market to expand.

Yet despite momentum, the sector continues to face steep barriers. Chief among them are the high upfront costs of installing capture systems and developing the pipelines and storage sites required to handle CO₂. The capture process itself is also energy-intensive, often relying on fossil fuels, which can dilute some of the climate benefits.

“We need CCUS more than ever,” said Matthew Harwood, Managing Director at Climate Investment. “Everything we’re hearing about the resurgence of demand and the re-accelerated role of gas means we really need to step up CCUS to manage this new scenario with emissions under control”.

According to Wood Mackenzie’s CCUS Outlook, 2025 could prove decisive, with around 200 projects expected to move towards final investment decisions. If realised, these could add more than 500 million tonnes per year of capture capacity - an important step towards 2030 targets.

Building confidence

For companies in the sector, the challenge now is to turn ambition into bankable projects. “Our role has changed in terms of how we deliver confidence and certainty,” explained John Platt, GM - New Energies, Chemicals & Fuels, Bechtel Cooperation. “There’s a greater demand for cost certainty and for real data. At the same time, engagement with governments has increased, and that legislative support is vital”.

Still, the financial gap is daunting. “There is a clear difference between the cost of emitting CO2 and the cost of CCUS,” said Grete Tveit Senior Vice President for Low Carbon Solutions at Equinor. “To close it, we must collaborate across the entire value chain. The reason our Longship project is up and running is because the Norwegian government coordinated and sponsored the chain from capture to storage”.

The power of partnerships 

Partnerships are emerging as a cornerstone of success. At Net Zero Teesside project, the world’s first gas-fired power station with carbon capture, collaboration proved decisive. “We generate 750 megawatts of low-carbon electricity - enough for one million homes in the UK - while capturing two million tonnes of CO2,”explained Marco Villa, Chief Business Officer of Technip Energies.

“This was only possible thanks to the cooperation of all parties: government, local community, sponsors, contractors, supply chain, and technology providers. The key message is that no one can have a solution alone to make carbon capture fine. Cooperation is key. I am surrounded by friends, partners, sponsors, collaborators here”.

bp, a partner in Technip’s UK project, focuses on safety and execution delivery. “We are aligned with what the world needs,” said Kathy Wu, Asia and Pacific Regional President for Gas and Low Carbon Energy of bp. “To build an industry that is inherently high-cost, governments must provide clear regulations, liability frameworks and financial incentives. Partnerships between companies—and between governments—are essential.”

Cutting costs, scaling up

Cost reduction is a priority. Wu pointed to opportunities for vertical integration—such as in pipe and steel fabrication—that can help manage costs and schedules. “We are building a new industry,” she said. “Delivering an integrated, phased approach is key.”

Harwood noted the need to accelerate learning curves. “Since 2000, solar capacity has risen 2000 times and wind 70 times globally, but CCUS has only grown five times. We need to ramp up, not only for climate reasons but also to give the supply chain more practice in delivering projects and cutting costs. Demand from data centres may even support paying a premium for green power.”

Platt agreed that scale is critical: “It is not a matter of if, but when. We’ve invested over 10 million USD to develop scalable templates so we’re ready as the market matures. Integration helps us retain skills and resources across projects, which will be essential as the industry expands.” 

Winning public trust 

Technology and finance are not the only hurdles. Public scepticism remains high, particularly around CO2 storage. “I read the transcript of a town hall meeting in the US, and it was sobering,” said Matthew Harwood: “The lack of understanding about CCUS was clear, and people were very anxious about the risks. There is a lot of educational work to do.”

Norway offers an example of how to build trust. “Projects must be explained to be believed,” said Tveit. “We’ve done this for 30 years, publishing all our data, and there have been no incidents or leakages. In Norway, no one questions CCUS anymore. On the continent, where it hasn’t been explained, people fear it. But CO2 is not explosive or flammable like natural gas. It is important to repeat it.”

With the right mix of regulation, investment and collaboration, 2025 could mark the moment the industry proves it can scale. Success will hinge not only on technology, but on persuading governments, investors, and citizens that carbon storage is safe, affordable, and essential.