CCUS Momentum Grows Despite Uncertainty: How Companies Are Still Powering Forward

Investment resilience in U.S. carbon capture shows industry strength

Despite inflation and policy turbulence, carbon capture, utilization and storage (CCUS) continues to gain traction across the United States. From first-mover cement producers to energy-tech innovators, companies are pushing ahead with commercial-scale CCUS developments. Their efforts reflect a shared belief: carbon capture isn’t just a compliance tool—it’s an economic and climate opportunity.

Corporate vision meets carbon capture commitment

While many CCUS projects are still in the pilot or design stage, big names are stepping up to scale. FuelCell Energy, Baker Hughes, and Heidelberg Materials are among those betting big on CCUS. Each is applying CCUS to power generation or hard-to-abate sectors like cement production, demonstrating sector-wide faith in the tech’s potential.

"By integrating gas-fired energy with the potential for permanent carbon storage, we are creating a direct, reliable power solution tailored to evolving industrial needs," said Robby Rockey, CEO of Frontier Infrastructure, who is partnering with Baker Hughes.

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Federal incentives fuel early momentum

The Biden administration's 45Q tax credit, offering up to $85 per ton of CO2 sequestered, was a key spark. It catalyzed over 270 new CCUS projects, according to the Carbon Capture Coalition, pushing innovation across power, manufacturing, and fuel sectors. The Infrastructure Investments and Jobs Act also channeled $1.7 billion in public-private CCUS funding.

However, that momentum faces potential slowdown under the Trump administration's current spending review. While the 45Q credit may stay (as many projects are in Republican-leaning states), DOE grants and pilot funds are under threat. Even so, developers aren't backing down.

Cement, a surprising CCUS frontrunner

Of all sectors, cement is fast becoming a proving ground for carbon capture. Global giant Heidelberg Materials is taking bold steps, with projects underway in both Indiana and Norway. Its Mitchell cement plant in Indiana is expected to capture 2 million tonnes of CO2 per year by 2030, while its Brevik facility in Norway opens this year as Europe’s first commercial-scale cement CCUS plant.

"CCUS could account for 36% of the industry’s carbon reductions by 2050," said a Heidelberg spokesperson, citing projections from the Global Cement and Concrete Association. With strong policy support and DOE funding through the CarbonSAFE program, these initiatives show what’s possible with public-private collaboration.

Strategic partnerships make the model

Tech providers and infrastructure firms are pooling strengths to fast-track projects. Baker Hughes recently partnered with Frontier Infrastructure to co-develop CCUS hubs integrated with gas-fired power and data center facilities. These projects cater directly to the soaring energy needs of AI and cloud storage industries.

At the same time, Calpine Corporation is negotiating with the DOE for support in scaling CCUS at its Baytown, Texas combined heat and power facility. If approved, it will sequester 2 million tonnes annually, another leap toward durable deployment.

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A financing shift is underway

Yes, CCUS is capital-intensive. Developers are navigating inflation-driven cost hikes and a cautious investment climate. According to Howard Herzog, senior engineer at the MIT Energy Initiative, inflation and permitting challenges have raised capital costs by roughly 30% since the pandemic.

But the sector is adapting. Companies like Baker Hughes and FuelCell Energy are funding initial projects internally, while exploring new models that blend energy generation and carbon storage in one revenue-generating system. Investors are warming to the idea of CCUS as a multi-use infrastructure asset.

Data centers could be CCUS's unlikely hero

The rise of energy-hungry data centers presents an unexpected boost for carbon capture. Operators need reliable, grid-independent power that also meets sustainability targets. That’s where hybrid systems—gas-fired power with CCUS, or hydrogen-ready plants —can shine.

Jason Few, CEO of FuelCell Energy, noted the rising demand: "We are excited to support Mike Hill’s agenda to drive top-line growth for the company," he said after announcing a leadership transition aimed at scaling commercial outreach.

FuelCell recently partnered with TESIAC and Diversified Energy Co. to deliver up to 360 megawatts of clean power to data centers in Virginia, West Virginia, and Kentucky.

What lies ahead

Even with near-term policy uncertainty, the long-term trajectory for CCUS is increasingly clear. More than a stopgap, CCUS is now seen as essential infrastructure for decarbonizing energy and industry. The U.S. may well double its CCUS capacity to 104 million tonnes annually by 2034, per forecasts from Wood Mackenzie.

As Peter Findlay, Director of CCUS Economics at Wood Mackenzie, noted: "Increased and more certain incentives to decarbonize would spur this number higher." And with growing pressure from investors, regulators, and the public, the message is being heard.

The CCUS sector is stepping up—from first-of-their-kind cement projects to hybrid data center hubs. What’s clear is that the companies leading the charge aren’t just adapting to climate reality. They’re shaping the infrastructure of a cleaner, more resilient future.