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CCUS

IEA Report Highlights: A New Era of Carbon Capture Momentum

Published by Todd Bush on May 1, 2025

A growing commitment to capture carbon

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Carbon capture, utilization, and storage (CCUS) projects are entering a new phase. Developers across the globe are doubling down on execution, moving from the drawing board to real-world impact. According to the latest data from the IEA CCUS Projects Database, over 50 million tonnes of CO₂ capture and storage capacity is now in operation—and that number is only going up.

From advanced engineering to construction, momentum is shifting toward delivery. Projects at more mature stages now make up 60% of the pipeline, showing a clear preference for tangible progress over speculative planning.

The industry is betting big: by 2030, announced projects could deliver around 430 MtCO₂ of capture and 670 MtCO₂ of storage capacity, marking a major leap in global decarbonization potential.

North America is leading the way

In the United States and Canada, the CCUS market is maturing quickly thanks to robust government incentives and major corporate investments. The U.S. Department of Energy has announced billions in funding for regional hydrogen hubs and carbon storage projects, aiming to scale clean hydrogen production and permanent CO₂ sequestration.

Projects like the Dakota Carbon Center and CarbonSAFE initiative are targeting geological storage in the Midwest. Meanwhile, Canada's Pathways Alliance is advancing a large-scale carbon storage network across Alberta’s oil sands region.

The U.S. also leads in direct air capture innovation, with companies like Climeworks and CarbonCapture Inc. building new DAC plants in Texas and Wyoming.

>> RELATED: CCUS Projects Around the World Are Reaching New Milestones

large-scale carbon storage network across Alberta’s oil sands region

Natural gas leads—but new sectors are catching up

Historically, CCUS activity has been concentrated in natural gas processing facilities, where the economics are more favorable and infrastructure is already in place. But things are changing.

More than half of new projects expected to become operational by 2030 are now in hydrogen production, carbon dioxide removal (CDR), and hard-to-abate industrial sectors. That shift reflects growing demand for clean hydrogen and durable carbon removal credits.

As Mathilde Fajardy, Energy Analyst at the IEA, explains: "We’re seeing CCUS begin to move into sectors that hadn’t previously considered it viable. That’s a sign of confidence in the technology and the business models supporting it."

2024: A year of ‘firsts’ for the industry

Last year was a turning point. CCUS projects moved into new sectors and geographies at record pace. The Net Zero Teesside Power project in the UK became the first natural gas power plant with carbon capture to reach final investment decision (FID).

In Sweden, a Stockholm Exergi facility reached FID as one of the largest CDR projects in the world. Meanwhile, China celebrated its first cement plant CCUS deployment, and Australia’s Moomba CCS project kicked off large-scale storage in a depleted gas field.

This wave of activity isn't limited to traditional players. Indonesia’s Tangguh LNG plant reached FID, and Kenya’s Project Hummingbird started construction as the Global South’s first DAC plant, backed by pre-purchase agreements.

North America's hydrogen and removal boom

In the U.S., the DOE’s Regional Clean Hydrogen Hubs program is funding up to $7 billion across seven regions to advance hydrogen infrastructure. Projects include blue hydrogen production using CCUS and green hydrogen from renewables.

Canada is also scaling rapidly. The Air Products hydrogen facility in Alberta is designed to capture over 3 million tonnes of CO₂ annually, supporting hydrogen exports to global markets. On the removal side, CarbonCure Technologies continues to expand its CO₂ mineralization in concrete across North America.

These developments make North America a global proving ground for carbon removal and hydrogen deployment.

Air Products hydrogen facility

>> In Other News: CICE Invests $2.46 Million in Five Women-Led Climate Tech Ventures

Financing is catching up

Access to funding is no longer a bottleneck. The East Coast Cluster project in the UK became the first CCUS venture to secure project finance—a massive milestone proving the bankability of CCUS when backed by solid government support.

The voluntary carbon market is also maturing. In 2024, companies signed offtake agreements for nearly 6 million tonnes of CO₂ removal, mostly through BECCS and DAC. That’s double the volume from the year before.

“For carbon removal developers, these deals bring the revenue certainty needed to move from pilot to plant,” said Josephine Tweneboah Koduah, another IEA analyst.

What to expect in 2025 and beyond

This year is shaping up to be even bigger. Norway’s Brevik CCS project is on track to become the largest cement capture facility in the world. In the U.S., Occidental Petroleum is set to open the world’s largest direct air capture plant.

That progress is echoed in regions like China and the Middle East, where over 15 MtCO₂/year of capacity is under construction. In fact, these two regions now represent 25% of global CCUS capacity either operational or in progress.

The next frontier? Regulatory reforms in Brazil, Indonesia, and Japan are laying the groundwork for more international deployment.

Rising demand, rising pressure

As more projects become reality, supply chains will be tested. Unlike solar or wind, CCUS technologies are still built one plant at a time. There’s no mass manufacturing yet, which could limit how fast the industry can scale.

This presents a major economic opportunity for countries that step up to build out the manufacturing base. The race is on to supply everything from capture modules to pipeline components.

At the same time, data centers are emerging as a surprise ally. As global electricity use from AI and cloud services grows, companies are looking for low-emissions power solutions—and natural gas plants paired with CCUS are on the list.

CCUS is no longer a ‘maybe’—it’s happening

The IEA’s latest update may show that we’re not yet fully aligned with a net-zero pathway, but the shift is undeniable. CCUS is crossing the threshold from concept to infrastructure.

With governments backing new regulations, venture capital fueling innovation, and major corporations securing future carbon credits, the stage is set for a rapid scale-up.

Carl Greenfield, IEA analyst, puts it best: “CCUS isn’t just a tool for oil and gas anymore. It’s a pillar of climate strategy across sectors and geographies.”

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