The journey to net zero emissions requires a portfolio of innovative solutions, and among the most critical is Carbon Capture, Utilisation, and Storage (CCUS). The period from 2023 to 2025 has seen an unprecedented transformation in the CCUS sector, marked by record levels of investment, significant technological breakthroughs, and a clearer understanding of the operational realities involved in scaling this essential technology.

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Explosive Growth Meets Ambitious Targets

By early 2025, global operational CCUS capacity had reached just over 50 million tonnes of CO₂ annually. This represents substantial growth, with the number of operational facilities expanding to 79 across nine industries, and 247 projects progressing to the Front-End Engineering and Design (FEED) stage, more than double the number in 2023. Investment in CCUS has tripled since 2022, reaching an impressive $6.4 billion in 2024, signalling strong market confidence.

Despite this rapid expansion and significant government commitments totalling $50 billion, current capacity still falls far short of the estimated 1,300 million tonnes required annually for net zero pathways. This underlines the immense scale of the challenge ahead and the urgent need to accelerate deployment.

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Accelerating Technological Innovation

The sector has also witnessed remarkable technological advances across capture, transport, and storage systems:

• Novel Capture Technologies: Innovative methods such as solid sorbents and advanced materials promise cost reductions and improved efficiency.
• Enhanced Amine Systems: Traditional amine-based capture processes have been substantially improved. Next-generation systems can achieve up to 99% CO₂ capture with minimal cost increases, while advanced solvents and automated monitoring systems further reduce energy demands and operational costs.
• Biogenic CO₂ Capture: Carbon dioxide can be captured during biomethane production from biogas, both removing CO₂ from the atmosphere and lowering the carbon intensity of biomethane, thereby adding value.

These innovations are particularly important as demand for electricity continues to grow, making effective carbon reduction technologies even more critical.

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The Rise of Regional Hubs

A decisive shift towards regional hub development has also emerged, as governments recognise the efficiencies of shared infrastructure over standalone projects. The European Union, for example, has designated 14 Projects of Common Interest (PCIs) for CCUS, creating an integrated network across nine countries.

One landmark initiative is Northern Lights, the world’s first cross-border CO₂ transport and storage facility, completed in 2024 and now fully operational. Located off the coast of Øygarden, Norway, the facility can handle up to 1.5 million tonnes of CO₂ per year in its first phase. CO₂ shipments, such as those from Heidelberg Materials’ cement plant in Brevik, are delivered by ship, offloaded, and piped 100 km offshore into the Aurora reservoir, located around 2,600 metres beneath the seabed. In August 2025, the project reached a major milestone with its first successful injection and permanent storage of CO₂, demonstrating the viability of CCS as a scalable commercial solution for hard-to-abate sectors across Europe. Looking ahead, a Phase 2 expansion, supported by NOK 7.5 billion in investment, will increase capacity to at least 5 million tonnes annually by around 2028, enabling wider participation by European industrial emitters.

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Challenges and the Path Forward

Despite impressive progress, the CCUS sector faces the daunting task of accelerating deployment by 67% per year to meet net zero objectives. This pace is challenging given current project attrition rates and technical hurdles. However, with ongoing policy support, continuous innovation, and growing international collaboration, the foundations exist for meaningful progress. The focus for 2025 and beyond must be on bridging the gap between current capacity and long-term climate ambitions.

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How AFS Energy Can Help

AFS Energy plays a vital role in guiding organisations towards robust climate solutions and navigating the complexities of environmental commodity markets. While we do not directly develop CCUS technology, our expertise supports businesses in integrating CCUS into broader sustainability strategies:

• Strategic Advisory for Climate Solutions: We help organisations understand how CCUS fits into their decarbonisation roadmaps, supporting informed investment decisions in cleaner technologies.
• Market Facilitation: We assist clients in understanding the market implications of CCUS, sourcing high-quality carbon credits, and optimising offset strategies.
• Compliance Integration: For sectors where CCUS becomes a key emissions reduction pathway, our all-inclusive Carbon Solution supports the integration of CCUS-related compliance and reporting within existing frameworks such as the EU ETS.

The progress made in CCUS marks a significant step forward in the global effort to tackle climate change. By leveraging expert guidance and market insights, businesses can explore and adopt CCUS solutions effectively, contributing to a decarbonised future while achieving both environmental and commercial objectives.