Trump's Energy 'Emergency' Sets Up Carbon Capture as a Solution

Green technology has a decade-long history of bipartisan support.

President Donald Trump’s executive orders and energy “emergency” declaration signal that the U.S. is going to expand carbon capture and sequestration (CCS) policies from his first administration.

Carbon capture refers to the process of removing carbon dioxide from fuel production, fuel combustion processes, and ambient air streams. The captured carbon can either be compressed into liquid and injected for permanent geologic sequestration in deep sub-surface formations or used for enhanced oil recovery and product manufacturing.

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The Bipartisan Budget Act of 2018, which Trump signed, expanded Section 45Q tax credits, allowing credits per metric ton of qualified carbon oxide captured and sequestered, rather than exclusively for CO₂. The Department of Energy in 2020 also supported clean fossil power generation technologies such as natural gas and blue ammonia in combination with carbon capture processes.

Trump’s latest executive orders promote energy supply solutions that integrate with and are supported by carbon capture, creating optimism that those technologies will receive renewed support. By declaring a national energy emergency, Trump directed executive agencies to use lawful authorities to “facilitate the identification, leasing, siting, production, transportation, refining, and generation of domestic energy resources.”

The executive order defines energy as “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals.” Many of these energy sources align with carbon capture.

Meanwhile, Rep. Troy Balderson (R-Ohio) reintroduced legislation to promote fossil fuel and nuclear energy development, signaling a push for energy supply that integrates with carbon capture technologies.

Bipartisan support for carbon capture has continued since the Obama administration’s Environmental Protection Agency (EPA) adopted the Class VI CO₂ injection well permitting program in 2010. The 2024 Carbon Dioxide Removal Investment Act established a new production tax credit for carbon removal technology, and there is a general expectation that tax credits for carbon capture under the Inflation Reduction Act will remain intact despite the administration change.

Another factor contributing to optimism for broader deployment is permitting, an often costly and time-consuming process, which may be streamlined. Trump directed federal agencies to eliminate delays and expedite processing of federal permits for projects deemed essential to national economic and energy security.

As a result, the EPA is expected to prioritize permits supporting fossil fuel energy sources, as well as technologies that integrate with such sources, such as Class VI CO₂ injection well permits. The agency may delegate authority, known as primacy, to additional states beyond the current four (West Virginia, North Dakota, Wyoming, and Louisiana) to issue permits, further expediting the process.

However, challenges remain for widespread carbon capture deployment. While technologies such as amine CO₂ stripping and CO₂ injection for enhanced oil recovery are well-established with mature permitting processes, deep CO₂ injection for permanent sequestration is a more recent development facing technical, supply chain, and regulatory hurdles.

Beyond these challenges, some stakeholders view carbon capture as controversial because it supports continued fossil fuel use and raises concerns about the safety of deep CO₂ injection, despite the regulatory safeguards under Class VI permitting regulations.

Despite uncertainties, progress in carbon capture technology has been notable, driven by policy support and industry interest. In 2022, GE Gas Power received $5.7 million in federal funding to study retrofitting Alabama Power’s James M. Barry Electric Generating Plant to capture up to 95% of its CO₂ emissions.

New carbon capture opportunities are also emerging from the growing energy demand of data centers supporting artificial intelligence. Engine No. 1 and Chevron U.S.A. Inc. recently announced a partnership to develop natural gas power plants for data centers, incorporating lower-carbon solutions such as carbon capture.

The trend of promoting carbon capture projects is expected to continue. McKinsey & Co. projects annual investment in carbon capture, utilization, and storage (CCUS) could reach $175 billion by 2035. A ResearchAndMarkets.com report forecasts a 16% compound annual growth rate in the carbon capture market from 2024 to 2031, with North America and Europe leading the growth.

Although the new administration’s energy policy is evolving, its focus on affordable and reliable energy supply—especially through fossil fuels—suggests that integrating carbon capture technology into both new and existing projects will become more commercially and technically viable.