Carbon Capture and Storage (CCS) involves capturing \(\text{CO}_2\) emissions from large industrial sources, such as power plants and factories, before the gas is released. The captured \(\text{CO}_2\) is then compressed, transported, and injected deep underground into suitable geological formations for permanent storage. The United States is actively pursuing CCS development and deployment as a tool for climate mitigation.
Operational Status: Key Projects and Capacity
The current scale of operational CCS deployment in the US is relatively modest but is concentrated in specific industrial sectors. Approximately 15 facilities are actively using CCS technology, primarily in the natural gas processing, ethanol production, and ammonia manufacturing industries. These industries are favored because they produce a highly concentrated stream of \(\text{CO}_2\), which makes the capture process less energy-intensive and less expensive.
Operating facilities currently capture around 22 million metric tons of \(\text{CO}_2\) per year. This represents about 0.4 percent of the nation’s total annual \(\text{CO}_2\) emissions. The outlook for expansion is significant, with over 120 additional projects currently in development or under construction. If completed, these planned projects could increase the total national capture capacity sevenfold, reaching approximately 156 million metric tons per year.
Deployment activity is clustered in regions with high industrial emissions and suitable subsurface geology for storage. The Gulf Coast, particularly Louisiana and Texas, is emerging as a primary hub due to its dense industrial base and deep saline aquifers for sequestration. The Midwest also has projects, largely linked to ethanol plants that capture emissions from their fermentation processes.
Policy Drivers: Federal Incentives and Legislation
The surge in interest and investment in US CCS projects results from federal policy mechanisms. The most significant financial driver is the Section 45Q tax credit, which provides a performance-based incentive for each metric ton of qualified carbon oxide captured and securely stored. The Inflation Reduction Act (IRA) of 2022 increased the value of this credit, making many previously uneconomical projects financially viable.
For \(\text{CO}_2\) captured from industrial sources and permanently stored, the maximum credit value is up to \$85 per metric ton, provided prevailing wage and apprenticeship requirements are met. The incentive is higher for Direct Air Capture (DAC) facilities, which pull \(\text{CO}_2\) directly from the atmosphere, offering up to \$180 per metric ton for permanent storage. These increased values have broadened the range of industries, such as cement and steel manufacturing, that can now consider CCS.
The IRA also lowered the minimum capture thresholds required for eligibility, allowing smaller projects to participate. The legislation introduced an elective payment provision, known as “direct pay,” which allows tax-exempt entities and certain other taxpayers to receive the full credit value as a cash payment from the federal government. This mechanism significantly reduces financial complexity and risk for developers, accelerating capital investment.
Infrastructure and Permitting Challenges
Despite strong financial incentives, CCS infrastructure deployment faces hurdles. A major bottleneck is securing permits for permanent underground storage, regulated by the Environmental Protection Agency (EPA) through the Class VI Underground Injection Control (UIC) program. These wells must meet stringent requirements for site characterization, construction, and long-term monitoring to ensure the \(\text{CO}_2\) does not migrate and contaminate drinking water sources.
The EPA’s review process for a Class VI permit is designed to take approximately 24 months, but the timeline is often longer due to project complexity. To accelerate permitting, the EPA can grant “primacy” to states that demonstrate regulatory programs as protective as federal standards. North Dakota, Wyoming, and Louisiana have been granted primacy, allowing them to issue permits more rapidly than the federal agency.
Another significant challenge is building \(\text{CO}_2\) pipelines to transport the captured gas from industrial sources to storage sites. The existing 5,300 miles of \(\text{CO}_2\) pipelines are insufficient to support the planned expansion of CCS. Developers struggle to secure the necessary rights-of-way from private landowners, especially for interstate projects.
Siting new pipelines is complicated by safety risks, as a rupture can release high concentrations of \(\text{CO}_2\) that displace oxygen and pose a suffocation hazard. Pipeline developers often seek to use eminent domain to acquire land involuntarily, generating significant public opposition and leading to project cancellations in the Midwest. State laws governing eminent domain for \(\text{CO}_2\) pipelines vary widely, creating an unpredictable regulatory environment for developers.
Siting and Public Acceptance
Local community engagement and acceptance represent a barrier to CCS deployment. Many proposed sites and pipeline routes are located near communities already overburdened by industrial pollution, raising Environmental Justice (EJ) concerns. Community groups view CCS skeptically, fearing its implementation will prolong the life of polluting fossil fuel facilities rather than lead to a transition away from them.
The capture process itself can sometimes increase the life-cycle air emissions of other toxic pollutants, contributing to the health burden on nearby residents. This potential for a “double injustice”—continued local pollution and new infrastructure risks—fuels local opposition. A significant portion of the \(\text{CO}_2\) currently captured is used for enhanced oil recovery, which critics see as counterproductive to climate goals.
Skepticism is also driven by the lack of community involvement in the initial planning stages. Ensuring public safety, especially regarding the long-term integrity of underground storage and pipeline transport risks, is paramount to building local trust. Without meaningful community consultation and clear benefits to the host population, public resistance will continue to slow deployment.