CCUS Projects Around the World Are Reaching New Milestones

Carbon capture, utilisation and storage (CCUS) is an important suite of technologies that can help deliver a low-emissions, secure and affordable energy system. In recent years, the sector has seen renewed momentum, in part driven by new business models organised around large CCUS hubs and networks.

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The latest update to our CCUS Projects Database, which incorporates developments between the first quarter of 2024 and the first quarter of 2025, shows modest changes across the project pipeline. As of the first quarter of 2025, there was just over 50 million tonnes (Mt) of carbon dioxide (CO₂) capture and storage capacity in operation, slightly higher than one year earlier. By 2030, capture capacity is now set to reach around 430 Mt CO₂ per year based on the current pipeline of projects. Meanwhile, storage capacity could reach around 670 Mt CO₂ by 2030, a 10% increase compared with the previous Database update.

While current trends are insufficient to align with a pathway towards net zero emissions by mid-century, there are recent signs of important progress. Around the world, developers have taken strides to move projects forward, including by breaking ground on a number of first-of-a-kind facilities in their respective sectors or regions.

Breaking down the project pipeline to 2030 reveals a greater emphasis by the industry on moving existing projects ahead rather than announcing or planning for new ones. In this year’s update, the capture capacity of projects in early stages of the planning process decreased compared with the previous edition. However, the capture capacity of projects at advanced stages (e.g. those that are undergoing front-end engineering and design) and under construction continued to grow and now account for 60% of the overall pipeline. In fact, if all projects currently under construction were completed, it would almost double existing capacity today – a first since the IEA CCUS Projects Database was launched.

Meanwhile, the rate at which projects were commissioned to become operational was similar to what we saw in the previous edition. Eight new CCUS projects began operating in 2024. However, these were relatively small-scale, with capture or storage capacities as low as 5,000 tonnes of CO₂ per year. As a result, the increase in operational capture capacity was marginal. The project pipeline for point-source capture – or carbon captured from industrial and power facilities – grew at a similar rate as in past years.

The majority (more than 60%) of operational capture capacity remains at natural gas processing facilities, mirroring historical trends. Due to large capture capacities, low costs and a final investment decision (FID) last year for CCUS implementation at a major liquefied natural gas plant in Indonesia, natural gas processing is likely to maintain a large share of total capacity in the near-term. However, this could shift as new projects in other sectors come online; projects in hydrogen production, carbon dioxide removal and industry make up over half of the pipeline of projects that could be operational by 2030.

2024 was a year of ‘firsts’ for CCUS

Last year, several first-of-a-kind projects moved into the construction phase or started operations in sectors that had not utilised CCUS before. The first natural gas power plant with carbon capture and storage reached FID in 2024 in the United Kingdom, targeting a capture capacity of 2 million tonnes of CO₂ per year. A combined heat and power plant in Sweden also reached FID, making it the largest CO₂ removal project to cross that milestone. Meanwhile, a plant in China that started operations last year became the world’s first to capture CO₂ emissions from cement production, and the world’s first large-scale storage project in a depleted gas field began operation in Australia.

Regions also saw their first-ever CCUS projects move to the construction stage. The large-scale CCUS project at the Tangguh natural gas processing plant in Indonesia received a final investment decision, and a direct air capture (DAC) pilot started construction in Kenya after securing venture capital investment and pre-purchase agreements for carbon removal credits.

A milestone was also reached in CCUS financing. The largest CO₂ transport and storage project to date became the world's first project-financed CCUS effort, signalling the increasing bankability of initiatives where there is strong government support.

Strong demand signals from voluntary carbon markets helped advance major carbon dioxide removal projects. Advanced offtake agreements were signed for close to 6 million tonnes of CO₂ removal with developers of bioenergy with carbon capture and storage (BECCS) and direct air capture (DAC) projects, making up 75% of total carbon dioxide removal credits purchases in 2024. This is almost twice as high as in 2023, and it provided the necessary revenue certainty for projects to reach FID.

Understanding the outlook for 2025 and beyond

The CCUS industry is set to continue to develop in 2025 as major projects become operational, including the world’s largest capture project at a cement plant in Norway and the world’s largest DAC plant in the United States.

Analysis of the IEA CCUS Projects Database suggests that even as the technology reaches new sectors, geographic concentration could remain a risk; 80% of capture capacity that could become operational by 2030 is in North America or Europe, compared with just below 60% of operational capacity today.

Trends are not set in stone, however. The medium- and longer-term outlook for CCUS could be affected by new players entering the market, emerging supply chain pressures, and potential demand from fast-growing sectors like data centres.

China and the Middle East are strengthening their CCUS commitments. With capture capacity of over 15 million tonnes of CO₂ per year currently under construction, China and the Middle East account for a quarter of capacity that is either operational or under construction – which is higher than the share in Europe. This year, China could commission a unit with the capacity to capture 1.5 million tonnes of CO₂ per year on a coal power plant, which would be the largest CCUS deployment of its kind in the world. Progress on CCUS is also expected in Brazil, Indonesia, and Japan following major regulatory developments.

As more projects come online, increasing demand for CO₂ capture equipment could put pressure on existing supply chains. Currently, manufacturing for CCUS is bespoke: individual sites are fitted with their own capture equipment, and no mass manufacturing takes place. As the market grows, however, existing supply chains will need to adapt to demand from a greater number of facilities. This could present an economic opportunity for countries that step in and scale manufacturing efforts.

Data centre demand for low-emissions electricity could contribute to increased interest in CCUS projects. Data centres are projected to be key drivers of electricity consumption in some regions over the coming decade; globally, they are set to consume slightly more electricity by 2030 than Japan does today. In many instances, data centre owners are opting for low-emissions sources of electricity to meet company climate goals – and in some cases, they are considering natural gas power plants with CCUS to provide behind-the-meter power to facilities.