Can Turning CO2 into a Commodity Drive the Carbon Capture Boom?

Why utilization could be the missing link

The race to capture carbon is on. But with less than 5% of global carbon capture projects involving any form of utilization, there’s a huge untapped opportunity.

A few bold companies are stepping up to change that.

Meet the key players pushing utilization forward

Carbon capture, utilization, and storage (CCUS) is no longer just a buzzword. A handful of companies are exploring whether captured CO2 can be used as a resource, not just waste to be stored underground.

Terradot, for example, is turning heads with its Enhanced Rock Weathering (ERW) platform. In early 2025, it landed a major deal with Microsoft to remove 12,000 tonnes of CO2 between 2026 and 2029. This wasn’t just about credits — the deal funds the most comprehensive scientific monitoring ever deployed at a commercial ERW site.

James Kanoff, CEO of Terradot, put it clearly: "This agreement with Microsoft represents a critical step forward in our mission to transform Enhanced Rock Weathering into a cornerstone of global carbon removal efforts."

On the other end of the spectrum, Carbon Upcycling Technologies is finding ways to turn captured CO2 into construction materials. Their technology upcycles industrial waste and CO2 into cement alternatives — a win-win for both emissions and supply chains.

They recently appointed Markus Kritzler as Chief Revenue Officer to drive expansion. He brings experience from his days at Holcim Group and plans to help commercialize Carbon Upcycling’s first large-scale facility at a Canadian cement plant.

"With Markus at the helm of our business development efforts, Carbon Upcycling is well-positioned to forge critical partnerships," said Apoorv Sinha, CEO of Carbon Upcycling.

The bull case: turning carbon into cash

Supporters of CO2 utilization say the economics could flip if we start treating carbon as a raw material. Here's how they see it working:

1. Mineralization and co-feed

Captured CO2 can be turned into things like limestone or used in cement production. The tech is mature, and costs are already competitive.

2. E-hydrocarbon fuels

Aviation and shipping need drop-in fuel alternatives. Turning CO2 into hydrocarbons could help bridge the biofuel gap.

3. Commodity replacement

CO2 can replace carbon-intensive inputs in certain processes — reducing emissions while feeding industrial supply chains.

4. Partial co-feed in chemical production

Industries like methanol already use CO2 in small amounts. Scaling this up could provide quick wins with minimal upgrades.

Source: Wood Mackenzie

>> In Other News: Ocean Visions Releases Comprehensive Marine Carbon Dioxide Removal Ecosystem Database

But the skeptics aren't sold

Despite the buzz, the numbers tell a sobering story. Utilization still faces real headwinds.

1. Storage scale dwarfs utilization

The world has the potential to store over 15,000 billion tonnes of CO2 underground — far beyond what we could ever use.

2. Weak policy support

Storage incentives are stronger and more established. Utilization incentives are mostly missing, except in niche cases like the EU's aviation fuel mandate.

3. High costs

E-fuels sound promising but rely on expensive green hydrogen and renewable energy. They’re unlikely to beat fossil fuel prices until 2040.

4. Immature markets

There’s no guarantee people will pay more for "carbon-free" steel, cement, or fuels. Without price premiums, utilization might not scale.

5. Limits of co-feed

Feeding CO2 into existing systems can help, but only partially decarbonizes production. Full transitions will require expensive redesigns.

Why companies are still pushing ahead

Even with the hurdles, companies like Terradot and Carbon Upcycling are betting that policy, innovation, and demand will catch up.

Terradot is already spreading rock on farmland in Brazil, with its first carbon credits expected later this year. Its deal with Microsoft supports watershed-level monitoring to validate CO2 impact — building trust in the science.

Carbon Upcycling is focused on cement — one of the world's dirtiest industries. By making low-carbon alternatives locally using CO2 and steel waste, they’re cutting emissions and costs.

Can utilization be the catalyst?

There’s no doubt carbon capture needs a financial backbone to grow. Utilization could be that foundation — if markets, policies, and technologies align.

Deals like the one between Microsoft and Terradot show that leading players are willing to take risks. And companies like Carbon Upcycling are proving that captured carbon doesn’t have to sit underground to be useful.

If the economics pencil out, utilization could shift from a niche idea to a core feature of global climate strategy.

Bottom line: Turning CO2 into a valuable resource is still an uphill climb, but the path is becoming clearer.

We’re watching the early players lay the groundwork for what might just be the next carbon revolution.