Carbon capture and clean hydrogen are more than climate buzzwords. They’re evolving into serious tools for decarbonization. But progress is still bumpy. Costs remain high, permitting is messy, and timelines are painfully slow. The upside? Policy changes and stronger funding signals are finally helping these sectors inch closer to real viability.
According to S&P Global Commodity Insights, CCS is now seen as scalable and necessary for heavy-emission industries like cement, steel, and power. But real scale is still out of reach. Only 34 large-scale CCS projects are running today, and most are still tied to enhanced oil recovery. Growing this 50-fold isn’t incremental growth. It’s a leap.
Sally Benson, energy expert and Stanford Professor, puts it plainly: “CCS is not a silver bullet, but for decarbonizing heavy industry, it’s essential.”
>> RELATED: BP's Indiana Exit Is Not the Endgame for Clean Hydrogen
The updated 45Q tax credit—$85 per ton for geologic storage and $180 per ton for DAC — is starting to change the game. What used to be theory is now entering the boardroom. Still, the floodgates haven’t opened yet.
Permitting delays, especially with Class VI wells, and the slow disbursement of DOE grants are creating bottlenecks. But with the right location, a buyer ready, and enough capital runway, the numbers are beginning to pencil out.
Clean hydrogen is making moves, especially through ammonia. Over 70 percent of announced green hydrogen in heavy industry is headed for ammonia production. It’s used in fertilizer and is now gaining traction as a shipping fuel.
Pairing ammonia with CCS creates export potential and big carbon savings. Companies like Air Products and CF Industries are doubling down on U.S.-based projects, and global interest is strong.
Fatih Birol, IEA chief, said it clearly: “Hydrogen can be the missing link in the clean energy transition.”
>> In Other News: Entropy Enters Definitive Agreement to Purchase Strategic Carbon Storage Assets
Capture can eat up 70 percent of total CCS project costs. Rising inflation and tight supply chains are pushing those numbers even higher—by an estimated 8 to 20 percent.
What makes a difference? Advanced solvents, smart site selection, and heat integration. These aren’t bonus features. They’re essential for making projects financially viable. For now, most successful projects are sticking close to easier sources like ethanol or ammonia facilities.
Voluntary carbon markets are opening up real opportunities, especially for BECCS. Carbon removal credits are drawing big corporate buyers. Microsoft alone has committed to over 6.7 million metric tons of CDR from a single project in Louisiana.
The demand is solid. The supply still isn’t there.
DAC was once a wild idea. Now it’s inching toward reality. Thanks to IRA incentives and private capital, U.S. companies like Heirloom and CarbonCapture Inc. are moving from theory to field deployment.
The costs are still steep—$400 to $600 per ton—but DAC is modular, permanent, and not tied to geography. Most importantly, it handles legacy emissions. No other solution offers that.
Shared infrastructure is becoming a smarter play. CCS hubs reduce risk and lower costs by pooling compression, transport, and storage systems.
The Harvestone Blue Flint project in North Dakota is a prime example. It raised $205 million in tax equity, used centralized infrastructure, had a tight CO₂ source, and followed IRA-aligned design principles. It’s a solid model worth replicating.
Region | Projects Announced | Advanced Stage | Capture Capacity (MMtCO₂) |
---|---|---|---|
North America | 126 | 32 | 21.5 |
Europe | 98 | 24 | 17.8 |
Asia Pacific | 76 | 15 | 13.2 |
Middle East | 34 | 5 | 5.9 |
The pace is still too slow. Permitting is stuck in a maze of federal and state red tape, public resistance, and overwhelmed agencies. Meanwhile, investment timelines are long and tech costs aren’t dropping fast enough.
Still, momentum is shifting. Over 42 active or pending CCS-supportive policies are on the table worldwide. Billions are being funneled into clean hydrogen infrastructure. The U.S. has a lead position—but only if it keeps pushing.
Jennifer Wilcox, Principal Deputy Assistant Secretary for Fossil Energy and Carbon Management at the U.S. Department of Energy: “To hit net-zero, we need to pull carbon from the air and the stack. CCS is a key part of that toolkit.”
Jurisdiction | Policy Tool | Description |
---|---|---|
United States | 45Q Tax Credit | Provides up to $85/ton for CO₂ storage and $180/ton for direct air capture. Includes direct pay and credit transferability options. |
Canada | Investment Tax Credit | Supports capital investment in CCS with up to 50% tax credit for eligible expenses. |
European Union | Carbon Contracts for Difference | Guarantees a fixed carbon price to reduce revenue uncertainty for CCS developers. |
United Kingdom | Cluster Sequencing Support | Government-backed funding to advance CCS infrastructure in industrial clusters. |
Japan | Green Innovation Fund | Financial support for large-scale CCS demonstration projects and R&D. |
Carbon capture and clean hydrogen aren’t simple, and they aren’t cheap. But they’re real. And they’re necessary.
They’re not perfect, but they’re what’s available. The way forward is clear—build smarter, scale faster, and stop dragging our feet. This isn’t a fad. This is infrastructure for climate action. And it needs to accelerate now.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🚀 Climeworks Raises USD 162M to Scale Up Technology 🛠️ DNV Advances Skylark to Enable Safe Scaling of CO2 Pipelines for Carbon Capture and Storage 🍁 Canada’s Rising Role in the G...
Inside This Issue 🏗️ Hyundai Unveils $6B Hydrogen-Powered Steel Mill in Louisiana, Aims to Position State as National Energy Leader 🤝 Deep Sky Inks Next DAC Deal in Germany with Greenlyte Carbon T...
Inside This Issue 🍁 Inside Canada’s Quiet Takeover of the Carbon Capture Industry ✈️ Phillips 66 to Supply SAF to British Airways in Calif 💧 HyVera Distributed Energy Launches Green Hydrogen-On-De...
Next-Gen Construction: 200 & 500kVA Hybrid Fuel-Cell Power USA - English
Elemental Energy launches its latest 200 & 500kVA hybrid hydrogen-BESS solution to optimise power supplies and eliminate combustion generators LONDON, July 3, 2025 /PRNewswire/ -- Elemental En...
Researchers in China have developed a groundbreaking technique that allows proton exchange membrane (PEM) electrolyzers to produce clean hydrogen from impure water, potentially reducing costs and e...
BILBAO, Spain--H2SITE has been awarded the EIC (European Innovation Council) Accelerator program for a project aimed at deploying a first-of-its-kind ammonia cracking unit capable of producing 1 to...
Trump's Budget Bill Boosts Fossil Fuels, Hits Renewable Energy
WASHINGTON - The budget bill the U.S. Senate passed on Tuesday and the House of Representatives is now debating for final approval would dampen development of wind and solar power, kill climate fun...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.