ACR's Updated CCS Rules Open Carbon Credit Market to DAC and BECCS

The American Carbon Registry has officially released Version 2.0 of its carbon capture and storage methodology, expanding eligibility to direct air capture, bioenergy with carbon capture and storage, and biomass carbon removal systems. The update also allows CO2 storage in saline reservoirs and depleted oil and gas fields, opening credit access to a much wider range of projects across North America and beyond.

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What Changed in ACR's CCS Methodology Version 2.0?

ACR's updated methodology marks a clear shift from point-source industrial capture to a broader framework that includes technologies actively removing carbon from the atmosphere.

Version 1.0 of the methodology limited eligible storage to oil and gas reservoirs and only covered CO2 from industrial point sources. Version 2.0 breaks that boundary. Developers can now store captured carbon in saline formations and depleted oil and gas reservoirs, significantly expanding the geographic footprint for eligible projects across the United States and Canada.

The revised methodology also extends eligibility to biogenic carbon sources. That means facilities burning biomass, ethanol distilleries, and biopower plants can now qualify for carbon credits alongside traditional industrial emitters like cement plants, steel mills, and petroleum refineries.

For enhanced oil recovery projects, Version 2.0 introduces a sunset on credit eligibility, along with expanded accounting requirements that cover emissions from transportation, refining, and end use of produced oil. The methodology was updated following an extended stakeholder consultation period that drew substantial industry interest.

Who Is the American Carbon Registry?

The American Carbon Registry (ACR), a nonprofit enterprise of Winrock International, is a leading carbon crediting program operating in both global compliance and voluntary carbon markets. ACR aims to create confidence in the scientific integrity of carbon markets to accelerate transformational emission reduction and removal actions.

The registry is approved for multiple compliance markets, including California's Cap-and-Trade Program, the Washington State Cap-and-Invest Program, and the International Civil Aviation Organization's CORSIA compliance periods through 2029. It is also recognized by the Integrity Council for the Voluntary Carbon Market (ICVCM), which has granted CCP-approved status to several ACR methodologies.

ACR's methodology outlines the full requirements for CCS project developers, including eligibility, ownership, regulatory compliance, and rigorous monitoring, reporting, and verification during active operation. Post-project verification requirements ensure that stored carbon remains permanently sequestered.

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How Does This Affect DAC Developers and BECCS Projects?

For direct air capture developers, the updated methodology changes the economics of project financing in a meaningful way. DAC facilities can now generate carbon credits under a framework that aligns with EPA Class VI geologic sequestration standards, giving buyers and investors a more credible verification pathway.

One structural advantage for DAC developers is the flexibility in where they site their facilities. Because DAC captures CO2 directly from the atmosphere rather than from a fixed industrial source, developers can co-locate their facilities with storage reservoirs. The new saline formation eligibility makes that even more practical. Access to low-cost renewable energy and proximity to storage geology can now be optimized simultaneously.

For BECCS projects, the update removes a barrier that previously made carbon credit monetization difficult. Under Version 1.0, biogenic carbon sources were excluded. Version 2.0 explicitly recognizes BECCS, BiCRS, and biomass-derived CO2 streams as eligible credit-generating sources, meaning projects like ethanol fermentation capture or biomass power with CCS can now access revenue from carbon markets.

Technology Type	Eligible Under v1.0?	Eligible Under v2.0?	Approved Storage
Industrial Point Source CCS	Yes	Yes	Oil/gas reservoirs, saline formations
Direct Air Capture (DAC)	No	Yes	Saline formations, depleted reservoirs
BECCS	No	Yes	Saline formations, depleted reservoirs
BiCRS	No	Yes	Saline formations, depleted reservoirs
Enhanced Oil Recovery (EOR)	Yes	Yes (with sunset)	Oil reservoirs (expanded accounting)

What Does Expanded Storage Eligibility Mean for Project Scale?

The inclusion of saline formations is a particularly significant development. These underground formations are geologically widespread and offer substantially more storage capacity than oil and gas reservoirs alone.

In 2020, 26 global CCS facilities supported the capture of 40 million metric tonnes of carbon dioxide, according to ACR data. Reaching the storage volumes required to meet UN climate targets, an increase to over 5,600 million metric tonnes per annum by 2050, will require opening every viable geologic formation. Saline aquifers distributed across North America represent one of the largest untapped storage opportunities in the world.

For developers in regions without active oil and gas infrastructure, saline formation eligibility removes a previous structural exclusion. Projects can now pursue credit certification under ACR even in areas where depleted hydrocarbon reservoirs are unavailable or unsuitable.

That 5,600 Mtpa target will require between $655 billion and $1.3 trillion in capital investment, according to ACR's estimates. Carbon credit revenue is a critical piece of that financial picture, particularly for projects in the DAC and BECCS sectors where operating costs remain high.

Why the Timing Matters for the Voluntary Carbon Market

The ACR update arrives at a moment when voluntary carbon markets are actively seeking higher-quality, durable removal credits. Advanced offtake agreements for close to 6 million metric tonnes of CO2 removal were signed in 2024 alone, with BECCS and DAC projects making up 75 percent of total CDR credit purchases that year, according to IEA data. That figure was nearly twice the volume recorded in 2023.

Credit buyers, including major technology companies and industrial firms, have increasingly committed to durable removal over avoidance credits. The BECCS sector in particular saw surging interest in 2024 and 2025, with buyers seeking long-duration removal backed by geological permanence. ACR's updated methodology provides the verification infrastructure that connects that demand to a growing pipeline of eligible projects.

The methodology also positions ACR-certified credits for potential use in future compliance markets. The Integrity Council for the Voluntary Carbon Market has already granted CCP-approved status to several ACR methodologies, meaning credits issued under ACR's standards meet the bar for the most rigorous market frameworks currently in use globally.

Looking Ahead: What the Industry Can Expect Next

ACR has indicated that future updates to the methodology will include CO2 utilization and mineralization pathways. Those additions would further expand the range of project types that can access carbon credit markets under the ACR framework.

For developers working in the direct air capture space, the publication of Version 2.0 is an actionable development. Projects that were previously ineligible for ACR credits because of biogenic carbon sources or non-hydrocarbon storage geology can now begin the eligibility assessment process. The same applies to BECCS and BiCRS developers who previously lacked a verification pathway for the biogenic portion of their removals.

Global CCS capacity must grow from 40 million metric tonnes annually in 2020 to more than 5,600 million metric tonnes per annum by 2050. Reaching that scale will require every eligible technology on the table. ACR's expanded methodology gives DAC, BECCS, and BiCRS developers access to the carbon credit revenue that makes those projects financially viable, and it does so within a framework already recognized by major compliance markets.

The policy infrastructure is catching up to the technology. For developers ready to move, the crediting pathway now exists.