7 Trends Shaping the U.S. Carbon Capture Market

Seven major trends are driving growth in the U.S. carbon capture market: increased investment, supportive policies such as the 45Q tax credit, expanding oil & gas involvement, growing storage capacity, new CO₂ transportation networks, advances in capture technology, and increasing demand for specialist talent. With more CCUS projects progressing, there’s a heightened need for experienced professionals across engineering, geoscience, wells, construction, operations, and regulatory roles, creating career opportunities across the energy sector.


Main Insights:

  • Investment in carbon capture utilization and storage (CCUS) projects is strong across North America.
  • Federal incentives, particularly the 45Q tax credit, are a major factor influencing project economics and investment decisions.
  • Existing oil & gas infrastructure and expertise provide a solid foundation for new CCUS projects.
  • New forms of carbon capture technology, including Direct Air Capture (DAC), are attracting substantial public and private investment.
  • Growing project activity creates demand for specialist talent spanning engineering, subsurface, construction, operations, and project delivery fields.

Carbon capture and storage, once viewed as a future technology, has become an increasingly important part of long-term energy and industrial planning in the United States. Energy majors are investing in new facilities, governments are introducing mechanisms to support deployment, and developers are progressing a variety of projects.

According to the International Energy Agency (IEA), global operational carbon capture capacity exceeded 50 million tonnes (Mt) of CO₂ per year during the first quarter of 2025. The current project pipeline could deliver approx. 430Mt of annual capture capacity by 2030, while announced storage projects could provide around 670Mt of annual storage capacity over the same period.

The U.S. is one of the most active markets within the global picture. Strong policy support, extensive energy infrastructure, suitable geological formations, and an experienced workforce have helped position the country at the center of many of the most noteworthy developments.

Here are the top 7 trends influencing the industry:

1. Why carbon capture is receiving more investment

Few indicators demonstrate industry confidence more clearly than the growing number of projects reaching advanced stages of development. While carbon management has been discussed for decades, projects have often struggled to progress past feasibility studies and pilot facilities. The current market looks very different.

The Global CCS Institute reported 734 CCS projects in development worldwide during 2025, alongside a 54% increase in operational facilities from 2024. This represents one of the largest project pipelines ever recorded by the organization and reflects growing confidence that carbon capture and storage will be incredibly important for future energy systems.

Refineries, petrochemical facilities, ethanol producers, LNG operators, power generators, hydrogen projects, and heavy manufacturing sites are all examining where carbon capture solutions can support long-term operational objectives. Another new driver is the increase in data centers. The Global CCS Institute notes growing interest in natural gas power generation paired with carbon capture, especially in North America, where operators want low-carbon electricity to meet round-the-clock power requirements.

2. Policy support is a key market driver

Although technology attracts much attention, policy is one of the main motivates on project development in the U.S.

The Section 45Q tax credit has become a cornerstone of the CCUS market by providing financial incentives for facilities that capture carbon dioxide and either store it permanently through geological sequestration or utilize it in qualifying applications. Recent enhancements for certain CO₂ utilization and geologic storage pathways have strengthened project economics and expanded access to support across a range of industries.

Carbon Capture Coalition data indicates that more than 270 announced and operational projects have been linked to the 45Q framework, demonstrating the extent of its influence. Policy support has helped draw additional private investment into areas such as storage infrastructure, transport networks, direct air capture (DAC), and industrial decarbonization.

This combination of government support and private sector investment has helped the U.S. maintain a leading position within the CCUS sector and continues to encourage developers to move projects toward final investment decisions.

3. Existing oil & gas infrastructure advances deployment

Natural gas processing represents a highly active area for carbon capture deployment and is expected to contribute significantly to future capacity growth. Because CO₂ is already separated as part of many gas processing operations, these facilities provide commercially attractive opportunities for large-scale capture and storage projects.

Many of the technical capabilities required to deliver successful CCUS projects already exist within the oil and gas industry. Reservoir characterization, drilling operations, well integrity, pipeline design, compression systems, process engineering, facilities management, project controls, and health and safety management all have direct relevance.

This overlap is creating a natural pathway for experienced energy professionals to transition into carbon management projects. It also explains why some of the most active development regions in the U.S. are areas with well-established oil and gas industries.

The Gulf Coast is a primary example. The region benefits from extensive pipeline networks, significant industrial emissions sources, decades of subsurface expertise, and favorable geology for carbon storage. These advantages make it an ideal location for capture facilities and shared transportation infrastructure.

4. Carbon storage capacity is a priority

Capturing CO₂ is only one part of the process, long-term storage is equally important. The U.S. Environmental Protection Agency regulates Class VI wells, which are specifically designed for geological sequestration projects. These wells allow capture CO₂ to be injected into deep underground formations for permanent storage while maintaining protections for underground drinking water resources.

State-level regulatory authority is becoming increasingly important as project volumes grow. Louisiana, North Dakota, West Virginia and Wyoming have now been granted Class VI primacy for CO₂ injection wells, allowing them to administer permitting programs directly rather than relying solely on federal oversight. Arizona and Texas are also progressing through approval processes, which could help streamline permitting and support future project deployment (The Global CCS Institute).

The availability of suitable geological formations can influence project location, transportation requirements, permitting timelines, and long-term operating costs. Companies assessing new investments increasingly have to consider the complete carbon value chain.

Enhanced Oil Recovery (EOR) also remains part of the broader market. In these projects, captured carbon dioxide can be injected into mature reservoirs to improve hydrocarbon recovery while supporting sequestration activities under established regulatory frameworks.

5. Carbon transportation networks are expanding

Early carbon management projects were often developed as standalone facilities, but many of today's projects are being designed as larger regional systems.

Multiple emitters connect to shared carbon transportation and storage infrastructure, creating economies that would be difficult to achieve through individual project development. This model has become particularly attractive in industrial regions where large volumes of CO₂ are produced across multiple facilities.

Along the Gulf Coast, companies including ExxonMobil, Occidental, Chevron, and other major operators are involved in developing storage and transportation infrastructure intended to support large-scale industrial carbon management programs. These developments are helping establish the foundations for future growth across multiple sectors.

Latest Carbon Capture Projects in the U.S.

Stratos DAC – Texas

Currently under construction in the Permian Basin, Stratos is the first DAC facility by 1PointFive, and partners including Occidental, BlackRock, and NYK. The project is expected to capture up to 500,000Mt of CO₂, with plans to scale up to one million, using liquid sorbent technology and geological sequestration.

Project Cypress – Louisiana

Backed by the DOE’s Regional DAC Hubs Program, Project Cypress is an ambitious DAC project planned in the U.S. Partners include Heirloom, Climeworks, and Battelle, developing two facilities aimed at removing more than one million metric tons of CO₂ annually. The project is eligible for up to $600 million in federal funding through the Bipartisan Infrastructure Law.

Midwest Carbon Express

Developed by Summit Carbon Solutions, Midwest Carbon Express is one of the largest carbon transportation and storage networks in the world. The project is designed to capture CO₂ from more than 50 ethanol facilities across the Midwest before transporting emissions for permanent geological sequestration.

Bayou Bend CCS – Texas Gulf Coast

In partnership with Chevron, Equinor, and TotalEnergies, Bayou Bend is expected to be one of the largest dedicated carbon storage projects in North America. Located along the Texas Gulf Coast, the project includes approximately 140,000 acres of onshore and offshore storage capacity and is targeting operations later this decade.

ExxonMobil Baytown CCS – Texas

Part of ExxonMobil's wider Houston carbon management strategy, the Baytown project combines low-carbon hydrogen production with one of the world's largest planned carbon capture and storage developments. Partners include Honeywell, Technip Energies, and JERA. The broader Houston CCS Hub is targeting storage capacity of around 50 million metric tons of CO₂ annually by 2030, with ambitions to double that capacity by 2040.

 

6. New developments in carbon capture technology

Traditional post-combustion capture systems remain widely used, but new approaches are receiving substantial investment.

Development activity includes:

  • Direct Air Capture (DAC) systems
  • Advanced solvent technologies
  • Novel sorbent materials
  • Membrane systems
  • Calcium looping processes
  • Digital monitoring solutions
  • AI-assisted reservoir characterization and performance analysis

Perhaps the most prominent area of innovation is Direct Air Capture (DAC), which removes carbon dioxide directly from the atmosphere. The U.S. Department of Energy's Regional DAC Hubs Program is supporting the development of commercial-scale facilities, each designed with the potential to capture at least one million metric tons of CO₂ annually.

Among the most closely watched projects are Project Cypress in Louisiana and the South Texas DAC Hub. These facilities bring together technology providers, infrastructure partners, government support, and workforce development initiatives in an effort to demonstrate large-scale carbon removal capabilities.

7. Growing project activity is creating demand for specialist talent

As CCUS projects move through milestone phases, organizations are seeking expertise across:

  • Carbon management
  • Process engineering
  • Subsurface and reservoir engineering
  • Geoscience
  • Drilling and wells
  • Project controls
  • Regulatory affairs
  • Environmental science
  • Construction leadership

But this demand is emerging at a time when many areas of the wider energy industry are already experiencing skills shortages, including traditional oil and gas, LNG, renewables, power generation, and infrastructure.

It’s suggested that large-scale carbon capture deployment could create an estimated 200,000-300,000 direct job-years in the near term, rising to a cumulative total of around 3 million direct job-years by 2050, with much of the demand expected to come from the capture segment itself.

Fortunately, a notable characteristic of the sector is the transferability of oil and gas experience. Professionals with backgrounds in upstream, midstream, LNG, offshore, and infrastructure projects often possess skills that align closely with emerging carbon management developments.

While organizations naturally look for professionals with direct carbon management experience, the market is still relatively young, so many companies are focusing on candidates who have developed their skills within other industrial and energy environments.

How Bedrock Can Support Your CCUS Hiring Needs

With more than a decade of experience supplying to the U.S. oil & gas sector, our specialist recruiters help clients secure the technical talent needed to deliver complex carbon management and energy infrastructure projects. We have dedicated teams that possess specialized expertise in identifying and sourcing professionals for , covering key locations across the U.S.

Contact Bedrock today to learn how we can support your carbon capture and energy transition hiring needs.


People also ask:

How does CCUS support global decarbonization efforts?

CCUS reduces emissions from hard-to-abate sectors such as oil & gas, heavy industry and manufacturing. By capturing and storing CO₂ that would otherwise enter the atmosphere, CCUS helps companies progress towards net-zero targets while support the transition to lower-carbon energy solutions. Learn more in our blog: The Role of CCUS in Decarbonizing the Upstream Oil & Gas Industry