Is CCUS Helping or Hindering the Global Energy Transition?

Carbon capture, utilisation and storage (CCUS) has become a central talking point in the energy sector’s decarbonisation journey.

But how much of its momentum stems from genuine energy transformation, and how much from industries seeking a licence to continue business as usual?

CCUS refers to a suite of technologies that separate carbon dioxide from industrial processes or the atmosphere, then either reuse it in manufacturing or lock it away underground.

For energy producers, it’s a potential pathway to low‑carbon operations, particularly in instances where electrification falls short.

Uneven progress on global deployment

Despite growing interest and investment, CCUS capacity still trails far behind its potential. 

Global operational capacity stood at roughly 50 million tonnes of CO₂ in early 2025 – barely scratching the surface of what’s needed to support large‑scale energy decarbonisation.

Developers hope capacity could increase to around 430 Mt CO₂ per year by 2030, but actual delivery depends on projects reaching financial close and regulatory approval. The majority of projects are concentrated in a handful of nations:

• The US leads, forecasting 244.8 Mtpa of capacity across 266 projects by 2030

• The UK follows, targeting 107.9 Mtpa across 75 projects by 2030

• Canada, Norway and China also maintain robust pipelines

Global CCUS deployment remains geographically uneven and technologically fragmented, underscoring how difficult it is to scale emissions‑removal infrastructure for the energy sector.

Policy tensions and power politics

Government backing for CCUS has increased as countries link energy security and industrial competitiveness with climate ambitions.

The UK, for example, has pledged substantial public funding for carbon hubs and regional clusters, positioning them as anchors for cleaner energy systems.

Nevertheless, the idea remains divisive. Critics of CCUS argue that it allows fossil fuel producers to maintain existing operations under a green banner.

Greg Jackson, CEO of Octopus Energy, has been especially vocal on the issue.

“The technology has been a gift to the oil and gas industry to carry on what they’re doing and carry on the fiction that somehow enormous amounts of public money should enable them to keep doing it," he says.

Northern Lights: Europe’s carbon storage testbed

A collaborative venture between Shell, Equinor and TotalEnergies, Northern Lights is pioneering cross‑border CO₂ storage in the Norwegian North Sea.

The first volumes were injected into the Aurora reservoir in 2025 through a 100‑kilometre offshore pipeline.

The facility’s first phase handles 1.5 Mt of CO₂ annually, already fully booked by emitters such as Heidelberg Materials, Yara and Hafslund Celsio.

Phase two, due in late 2028, will lift capacity to 5 Mt per year and introduce expanded pumping, shipping and storage infrastructure.

Italy’s move into subsea storage

Italy entered the CCUS race in 2024 with Ravenna CCS, a partnership between Eni and Snam.

The project’s first phase captures 0.25 Mt of CO₂ annually from Eni’s Casalborsetti gas treatment plant, storing it permanently in the disused Porto Corsini Mare Ovest reservoir in the Adriatic Sea.

Eni says: “The initiative is already cutting the plant’s CO₂ emissions by up to 96% during peaks.”

A second phase, targeted for 2030, will scale up to 4 Mt annually and support heavy emitters such as cement and steel plants in the local industrial corridor.

“CCUS is a mature and safe technological process and is one of the key levers for the energy transition, being an efficient and effective tool to support hard-to-abate industries in reducing their emissions," says Eni's CEO, Claudio Descalzi.

Capturing carbon in the American heartland

Occidental’s STRATOS facility in Texas is expected to start commercial operation this year, marking one of the most significant direct air capture (DAC) projects in the US.

Once fully operational in mid‑2026, STRATOS aims to remove about 0.5 Mt of atmospheric CO₂ annually, with storage in saline formations.

Microsoft, Amazon and Airbus are among the companies purchasing CO₂ removal credits from the project. Occidental claims this integration of carbon capture with crude production could create “a carbon neutral barrel of oil.”

Occidental is also advancing its South Texas DAC Hub, which could eventually store up to three billion tonnes of CO₂ – material evidence of how energy players are pivoting CCUS from theory to infrastructure.