The Carbon Capture, Utilization, and Storage (CCUS) is at a pivotal moment in 2025, with global momentum, regulatory pressure, and technological innovation converging to make it a strategic priority for CEOs across heavy industry, energy, and beyond. Here’s what leaders need to know to make informed decisions:

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1. Market Growth and Investment Climate

• The global CCUS market is experiencing rapid expansion, with carbon capture capacity forecast to grow at a CAGR of 18.5% from 2025 to 2045, aiming for 2.5 gigatonnes per annum by 2045.

The carbon capture and storage (CCS) segment alone was valued at USD 3.1 billion in 2023 and is projected to USD 12.9 billion in 2030 grow at 24.0% CAGR through 2030, driven by regulatory mandates and decarbonization investments.

2025 is anticipated to be a turning point, with a record number of final investment decisions and large-scale projects coming online, signaling a shift from pilot to commercial-scale deployment.

2. Regulatory and Policy Drivers

• Stringent emissions regulations are a primary catalyst. For instance, the US EPA now requires gas and coal plants to incorporate CCS to cut emissions by 90% by 2032–2035, with compliance starting in June 2025.

International climate agreements (e.g., Paris Agreement) and national net-zero commitments are compelling companies in hard-to-abate sectors – cement, steel, oil & gas, chemicals – to adopt CCUS without overhauling core production processes.

Government incentives, such as tax credits (e.g., US 45Q), subsidies, and carbon pricing, are making CCUS projects more financially viable and attractive for private investment.

3. Sectoral and Geographic Trends

• CCUS is expanding beyond traditional oil & gas to power generation, cement, steel, and even data centers, reflecting its role in decarbonizing hard-to-abate sectors.

North America and Europe currently dominate operational and planned capacity, but China and the Middle East are rapidly scaling up, now accounting for a quarter of global capacity under construction.

Major projects set to become operational in 2025 include the world’s largest capture facility at a cement plant in Norway and the largest direct air capture (DAC) plant in the US, underscoring the technology’s growing reach and ambition.

4. Technology and Value Chain Considerations

• CCUS encompasses a range of technologies: point-source capture (from industrial plants), direct air capture, CO₂ utilization (e.g., fuels, building materials), and permanent storage.

Most current deployments are bespoke, with site-specific capture equipment, but supply chains will need to scale rapidly to meet rising demand and reduce costs.

Technology readiness varies: solvent-based and solid sorbent systems are mature for high-concentration sources, while DAC and advanced utilization pathways are advancing quickly and attracting investment.

Building out the full value chain – from capture to transport, storage, and utilization—is essential for project success and market growth.

5. Business Models and Strategic Opportunities

• CCUS business models are evolving: from full-chain (capture, transport, storage/utilization) to hub-and-cluster approaches that aggregate emissions from multiple sources for shared infrastructure.

Enhanced oil recovery (EOR) remains a key application, but new utilization pathways (e.g., CO₂-derived chemicals, fuels, and materials) are emerging and could unlock additional revenue streams.

Companies with early-mover advantage in CCUS can position themselves as leaders in sustainability, secure regulatory compliance, and potentially monetize carbon credits or low-carbon products.

6. Key Challenges and Risks

• Supply chain constraints, especially for capture equipment, could bottleneck deployment as demand surges.

Geographic concentration of projects (mainly in North America and Europe) poses risks; diversification into Asia, the Middle East, and Latin America is underway but uneven.

Regulatory uncertainty, project financing, and technology integration remain hurdles, especially for cross-border CO₂ transport and storage.

CEO Takeaways for 2025

• Act Now: 2025 is a critical inflection point—delays could mean missed opportunities as the market consolidates around leaders with proven CCUS capabilities.

Integrate CCUS into Net-Zero Strategy: CCUS is increasingly essential for meeting regulatory requirements and corporate climate commitments, especially in hard-to-abate sectors.

Leverage Incentives: Take advantage of government support, tax credits, and emerging carbon markets to de-risk investments and improve project economics.

Build Partnerships: Collaborate across the value chain – capture technology providers, transport operators, storage site owners, and end-users – to ensure project success and scalability.

Monitor Technology and Policy Trends: Stay agile as new technologies mature, supply chains evolve, and regulations shift, especially in emerging markets and sectors like data centers.

In summary, CEOs in 2025 must recognize CCUS as a fast-evolving, strategically vital market—both a compliance necessity and a business opportunity in the global race to net zero.