According to the International Energy Agency, 14 percent of cumulative emissions reduction needs to come from carbon capture and storage to limit global temperature increase to under 2 degrees Celsius – the goal set under the Paris Agreement. This equates to about 4 billion tonnes per annum of CO2 that would need to be captured via CCS before 2040.
Since the average capacity of a CCS is 1.5 million tonnes per year, that means the world needs approximately 2,500 more CCS facilities by 2040. Capacity also needs to increase 70-fold. CCS reached a global capacity of 55 million tonnes CO2 captured per annum in 2024, spanning 53 CCS projects in 15 countries.
That’s a tall order, and the industry is currently facing headwinds in many regions. Rystad Energy estimates there are some 600 CCS projects worldwide, with a total re-injection capacity of 625 million tonnes of carbon dioxide by 2033. However, as many as half the projects are facing delays. Let’s zoom in on CCS potential by region.
CCS in North America
The United States leads the world in operating CCS projects: It has 22 projects with a combined capacity of 19.1 million tonnes CO2 captured. America also has 15 projects under construction with a combined capacity of 18.0 million tonnes per annum of CO2 captured. There are more than 270 CCS projects planned, with a total capacity close to 500 million tonnes of CO2 captured per annum.
Canada adds another eight CCS projects to the North American region, with a combined capacity of 9 million tonnes of CO2 captured. These projects are mostly for enhanced oil recovery. Seven more projects are under construction, with a combined capacity of 13.5 million tonnes of CO2 captured. Finally, Canada has 56 CCS projects planned, with a combined capacity of 154.3 million tonnes of CO2 captured per annum. Ten Canadian CCS projects have been cancelled, three of which were planned to take final investment decision in 2025.
There are currently no CCS projects planned or operating in Mexico.
CCS in Europe
Europe has nine projects in operation, with a combined capacity of 3.3 million tonnes of CO2 captured per annum. There are 19 CCS projects under construction, with a total capacity of roughly 20 million tonnes of CO2 captured capacity. More than 300 CCS projects are in the planning phase with a total capacity over 430 million tonnes per annum CO2 captured.
Specifically, the United Kingdom has seen recent CCS Progress. The U.K. government committed $29 billion to CCS during a 25-year period. This helped two hub projects take FID recently, including the ENI-operated Liverpool Bay CCS project for the HyNet Hub. The project will inject some 4.5 million tonnes of CO2 into its depleted gas fields. It has the potential to increase capacity to 10 million tonnes per year.
The other major U.K. project, the East Coast Cluster, took FID in December 2024. Led by BP, Equinor and TotalEnergies, the project will inject CO2 into an offshore saline aquifer in the North Sea. The East Coast Cluster project will have a capacity of 23 million tonnes per year by the mid-2030s.
CCS in the Middle East
Saudi Arabia, the United Arab Emirates and Qatar have CCS facilities for EOR and gas storage, with a total capture capacity of 3.7 million tonnes of CO2 per year – approximately 8 percent of the global total. There are 14 more CCS projects planned or under construction in the region with an additional capacity of 39.5 million tonnes. Oman and Bahrain will join the three Middle Eastern countries currently involved in CCS.
CCS in China
Thus far, Chinese projects tend to be relatively small, with an average of 0.27 million tonnes per annum of captured capacity. China’s first CCS project is an EOR project that became operational in 2015 in the Karamay oil field, with a capacity 0.1 million tonnes per annum. By 2024, China had 15 projects operating with a total capacity of 4 million tonnes per annum CO2 captured.
There are 25 CCS projects planned or under construction, with an additional capacity of 39.7 million tonnes of CO2. The average size of a new Chinese CCS facility will hold 1.6 million tonnes per annum, led by the CNOOC-Shell-ExxonMobil Daya Bay CCS project in the south with a planned total capacity of 10 million tonnes per annum.
CCS in Latin America
Brazil leads Latin America with the Petrobras-operated Santos Basin pre-salt CCS project that has been in operation since 2013. The project has 10.6 million tonnes of CO2 capture capacity. Five other projects are planned: three in Brazil, one in Chile and one in Uruguay. The pipeline of CCS project in Latin America is relatively short with a combined capacity of less than one million tonnes of CO2 captured.
CCS in Australia
Australia has two operational CCS projects with a combined capacity of 3.3 million tonnes of CO2 captured per year. The country has an ambitious 34 projects planned, adding 70 million tonnes of capacity. Japanese companies will join three Australian CCS projects.
CCS in Africa
There are no active CCS projects in Africa, but many are in the pipeline. ENI and Libya’s National Oil Corp. will operate a planned project with a capacity of 1.6 million tonnes. It is scheduled to come onstream in 2030. There are also five direct air capture projects proposed in Kenya. The largest, the Great Carbon Valley direct air capture project, aims to capture one million tonnes of CO2 emitted from the East African Rift volcanic system and turn it into green industry, including green hydrogen, ammonia and methanol. It is projected to come on stream in 2028.
Challenges Remain
A key challenge for many CCS projects is cost. Eighty percent of CCS costs accumulate during the capture stage. Capture costs range from $50 per tonne of CO2 for high-concentration streams, to $200 per tonne for low-concentration streams. Direct air capture could cost as much as $600 per tonne. Financial incentives are therefore critical to help spur CCS projects.
Policy clarity in the United States also remains an issue. The Biden Administration boosted carbon capture tax credits under code 45Q in the Inflation Reduction Act. Credits differ based on how CO2 is stored. IThe latest bill passed by the House of Representatives appears to have retained most of the 45Q incentives, but if the current administration makes changes, it could impact the economic viability of some U.S. CCS projects. The rest of the world will keep a close eye on U.S. policy changes.