USA Carbon Capture and Storage Market Analysis

UK Carbon Capture and Storage Market Outlook from 2025 to 2035

The CCS market in the USA will experience exponential growth and reach approximately USD 7,916.3 million by 2035 with a CAGR of 16.9% during 2025 to 2035. Factors that have supported such growth are federal funding for regional CCS hubs, the strong investments that companies have made in this space, improvements in DAC technologies, and increased interest in decarbonizing hard-to-abate sectors, including steel, cement, and chemicals.

The USA government's emphasis on the development of innovation in CCS is reflected in the multi-billion dollar funding for research and deployment projects, including the USD 2.5 billion allocated to regional CCS hubs alone in 2023. Thus, the market is not only increasing in size but also in sophistication as innovative applications develop across industries.

Attribute	Details
Anticipated Forecast Value (2035)	USD 7916.3 Million
Value CAGR (2025 to 2035)	16.9%

Market Introduction

USA carbon capture and storage market is a pioneer in global decarbonization because of ambitious climate goals, robust government support, and technological innovation. The United States has committed to achieving net zero emissions by 2050 and is emerging as an important tool in bringing about reductions in energy, industrial, and agricultural sectors.

The Inflation Reduction Act (IRA) and Section 45Q tax credits significantly advance this momentum. More significantly, there are huge market opportunities opening up due to CCS-related technology investments and infrastructural advancements, considering direct air capture initiatives in the United States are on a lead. Coupled with strong industrial developments and public-private partnerships, the USA market is set to grow rapidly during the forecast period.

Key Trends

Growth in Power Sector Applications

• The power sector is one of the largest sources of greenhouse gas emissions in the USA, making it a critical area for CCS adoption. Retrofitting coal and natural gas-fired power plants with CCS technologies is becoming more common, driven by the need to comply with federal and state-level emissions regulations.
• For instance, the Petra Nova Project in Texas has successfully captured over 90% of CO₂ emissions from a coal-fired power plant ahead of its temporary shutdown owing to market conditions. Such projects are planned to reduce the carbon footprint of the USA energy sector.

Expansion of Enhanced Oil Recovery (EOR)

• The USA has been the world leader in enhanced oil recovery (EOR) for many decades, injecting CO₂ to extract more oil from depleted reservoirs. This increases oil production but also provides a reliable means of long-term carbon storage. The central states for EOR activities are Texas, Wyoming, and North Dakota, where companies such as ExxonMobil and Occidental Petroleum have heavily invested in integrating CCS with EOR.

Policy Support and Tax Incentives

• Increased financial support for the CCS projects can be achieved, in addition to the IRA with increased Section 45Q tax credits. These are some of the key provisions:
• Up to USD 85/ton of CO₂ captured and stored in saline formations.
• USD 60 per ton for CO₂ used in EOR or other applications.
• Additional state-level incentives, such as California’s Low Carbon Fuel Standard (LCFS), further enhance project economics.

Development of Regional CCS Hubs

• Regional hubs will be needed for the Gulf Coast, Midwest, and Rocky Mountain regions to scale CCS infrastructure. These hubs combine capture facilities, transportation networks, and storage sites to create economies of scale and reduce costs.
• The Houston CCS Hub, led by ExxonMobil, will capture and store CO₂ emissions from industrial facilities in the region.

Segment Analysis

By Technology

• Post-Combustion Capture 40% Share: Most widely used in industrial and power generation plants as retrofits. Advances from Mitsubishi Heavy Industries in solvent-based systems have enhanced efficiencies.
• Pre-Combustion grows with 8.5% CAGR: Notable appli- where it is applied, since most hydrogen production is also based on gasification. In IGCC projects, its large-scale appli- capac- is being investigated.

By Application

• Power Plant (35% Share): Focuses on emission reductions in coal and natural gas plants; major retrofit projects are in process.
• Industrial Processes (45% Share): Adoption in iron & steel, cement, and chemical processing industry is influenced by emissions mandates and sustainability commitments.

Industry Wise Growth and Trends

Industry	Power Plant
CAGR (2025 to 2035)	7.5%
Key Trends	Retrofitting coal and gas plants with CCS technology.

Industry	Industrial Processes
CAGR (2025 to 2035)	8.3%
Key Trends	Adoption in hard-to-abate sectors like steel and cement.

Industry	Enhanced Oil Recovery
CAGR (2025 to 2035)	6.9%
Key Trends	Expansion in CO₂-based oil extraction projects.

The industrial sector is the CCS adoption leader, while power generation and EOR are picking up steam with policy support.

Market Concentration

The USA CCS market is highly diversified with competition from global giants, innovative startups, and research-driven institutions.

Established Players

• The energy leaders, Chevron, ExxonMobil, and Shell, are the market leaders. They have expertise in large-scale storage projects and EOR.

Innovative Startups

• Companies including Carbon Engineering and Global Thermostat are emerging players that are focusing on DAC technologies, targeting negative emissions solutions.

Research and Academia

• MIT, Stanford, and national laboratories such as Lawrence Livermore are driving innovation in cost reduction and alternative storage methods.

Industry Updates

Date	Key Development
February 2025	Chevron announced a USD 1 billion investment in CCS for Gulf Coast operations.
May 2025	ExxonMobil launched a large-scale DAC facility in Wyoming in partnership with Climeworks.
August 2025	The Department of Energy allocated USD 2.5 billion for regional CCS hubs.
November 2025	Shell completed its largest CCS project for blue hydrogen production in Louisiana.

Future Outlook

The future of the CCS market in the US is going to transform with technological changes, policy initiatives, and gigantic projects. Key factors shaping the market include:

Regional CCS Hubs Expansion

• Hubs such as those found along the Gulf Coast and the Midwest will take on an increasingly central role in developing integrated networks for CCS.

Scaling Blue Hydrogen Production

• In producing blue hydrogen, CCS is vital for smoothing out the transition towards green hydrogen.

Accelerating DAC Deployment

• With federal funding to back private investment, innovation in DAC can drive the country forward in a significant manner regarding negative emissions technology.

Focus on Industrial Decarbonization

• Steel and cement sectors will integrate more CCS to meet federal and state-level mandates for emission reduction.

Collaboration Across Sectors

• Public-private partnerships will enhance technology transfer, accelerate project timelines, and reduce overall costs.

Table of Content

1. Introduction
2. Market Outlook
3. Key Trends
4. Segment Analysis
5. Industry-Wise Growth and Trends
6. Market Concentration
7. Industry Updates
8. Future Outlook
9. Frequently Asked Questions (FAQs)