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Carbon Capture Technology: How It Works & Why It Matters

Discover how Carbon Capture Technology traps CO₂ from industry, its benefits, costs, and leading companies driving global decarbonization.

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Carbon Capture Technology (CCT) plays a vital role in global efforts to mitigate climate change. While transitioning to renewable energy remains essential, industries like cement, steel, and chemicals still produce unavoidable emissions. Carbon capture provides a practical way to prevent these emissions from reaching the atmosphere—buying time as we scale cleaner solutions.

In this guide, we’ll explore how carbon capture works, its types, benefits, challenges, leading companies, and the future of this crucial climate technology.

What is Carbon Capture Technology?

Carbon Capture Technology (CCT), often referred to as Carbon Capture, Utilization, and Storage (CCUS), is a suite of methods used to capture carbon dioxide (CO₂) from large emission sources—such as power plants, cement kilns, and refineries—before it enters the atmosphere.

Once captured, the CO₂ can be:

  • Stored underground in deep geological formations for permanent sequestration
  • Reused or converted into products like fuels, building materials, or chemicals

Unlike Direct Air Capture (DAC), which removes CO₂ already in the atmosphere, CCT prevents CO₂ from being emitted in the first place.

How Carbon Capture Works

The carbon capture process generally involves three key stages:

  1. Capture:
  2. CO₂ is separated from other gases in industrial exhaust streams using solvents, membranes, or solid sorbents.
  3. Compression and Transport:
  4. The captured CO₂ is compressed into a liquid-like state and transported—typically by pipeline—to a storage or utilization site.
  5. Storage or Utilization:
    • Storage: Injecting CO₂ deep underground into geological formations like depleted oil and gas reservoirs or saline aquifers, where it can mineralize over time.
    • Utilization: Converting CO₂ into useful products, such as synthetic fuels, concrete, or polymers.

FAQ: Is Carbon Capture the Same as Carbon Removal?

Not exactly. Carbon capture prevents new emissions, while carbon removal technologies (like DAC or reforestation) remove existing CO₂ from the atmosphere. Both are essential to reach net-zero targets—capture limits future damage, while removal cleans up the past.

Benefits of Carbon Capture Technology

1. Immediate Impact:

Carbon capture can be deployed now to cut emissions from existing industrial infrastructure.

2. Industrial Compatibility:

It enables hard-to-abate industries (steel, cement, chemicals) to operate sustainably while low-carbon alternatives mature.

3. Enhanced Oil Recovery (EOR):

Captured CO₂ can be used in oil recovery operations, though this remains controversial as it prolongs fossil fuel use.

4. Scalability:

Leverages existing energy infrastructure, pipelines, and geological formations to scale faster than new clean technologies.

5. Economic Opportunity:

Creates new markets for carbon-based products and generates skilled jobs in engineering, construction, and energy.

FAQ: How Much CO₂ Can Carbon Capture Prevent?

According to the International Energy Agency (IEA), global carbon capture capacity could reach over 1 gigaton of CO₂ per year by 2030 if current projects proceed—equivalent to removing the annual emissions of 200 million cars.

Types of Carbon Capture Technologies

Carbon capture technologies vary depending on where and how CO₂ is captured:

  • Post-Combustion Capture:
  • Captures CO₂ from exhaust gases after fuel combustion (common in power plants).
  • Pre-Combustion Capture:
  • Removes CO₂ before fuel is burned—used mainly in hydrogen and gasification systems.
  • Oxy-Fuel Combustion:
  • Burns fuel in pure oxygen, producing a concentrated CO₂ stream that’s easier to capture.
  • Industrial Process Capture:
  • Applied directly within cement, steel, and chemical plants to intercept CO₂ emissions at their source.

Current Carbon Capture Technologies and Companies

Several pioneering companies are developing and deploying large-scale carbon capture systems:

  • Shell – Operates Quest, one of the world’s largest CCS facilities in Canada, storing over a million tons of CO₂ annually.
  • ExxonMobil – Investing billions in global carbon capture hubs, including the Houston CCS project.
  • Occidental Petroleum (Oxy) – Through 1PointFive, combining DAC and point-source capture for large-scale removal and storage.
  • Equinor – Partnering in Norway’s Northern Lights project to store captured CO₂ beneath the North Sea.
  • Chevron – Expanding CCS efforts across refineries and natural gas processing plants.
  • Linde – Supplying industrial gas separation systems for carbon capture in heavy industry.

What Companies Are Using Carbon Capture for Their Climate Goals?

An increasing number of corporations are integrating carbon capture into their decarbonization strategies, especially in high-emission sectors.

BP – Investing in multiple CCS projects, including Net Zero Teesside in the UK, designed to capture up to 10 million tons of CO₂ annually.

TotalEnergies – Developing CCUS projects across Europe, including the Northern Lights joint venture, to decarbonize its refineries and partners’ industrial sites.

ArcelorMittal – Implementing carbon capture systems at steel plants to produce low-carbon steel and exploring CO₂ utilization for fuels and chemicals.

Heidelberg Materials – Operating full-scale carbon capture at its Brevik cement plant in Norway—the world’s first carbon-neutral cement facility.

Air Products – Building the world’s largest blue hydrogen facility in Texas with carbon capture to reduce industrial emissions.

BASF – Integrating carbon capture and utilization within its chemical production processes to produce carbon-neutral materials.

FAQ: How Much Does Carbon Capture Cost?

Costs vary widely depending on the source and technology.

  • Industrial and power capture: $40–$120 per ton of CO₂
  • Transportation and storage: $10–$20 per ton
  • Costs are expected to decline as more infrastructure and standardized CO₂ transport networks are developed.

Energy and Infrastructure Requirements

Carbon capture requires energy to separate and compress CO₂, but modern systems are becoming more efficient. Integration with renewable or low-carbon power sources helps minimize the technology’s footprint.

Large-scale deployment also depends on:

  • Pipeline infrastructure for CO₂ transport
  • Proximity to suitable geological storage sites
  • Supportive government policies and carbon pricing mechanisms

Challenges and Limitations

Despite its promise, carbon capture faces several hurdles:

  • High upfront costs for infrastructure and operation
  • Limited storage capacity in some regions
  • Public perception issues related to CO₂ storage safety
  • Dependency on fossil fuel operations when used for EOR
  • Policy uncertainty in many markets affecting investment confidence

The Future of Carbon Capture

The next decade will be pivotal for scaling CCT. Key trends include:

  • Development of regional carbon capture hubs (e.g., US Gulf Coast, Northern Europe)
  • Integration with hydrogen production and carbon-neutral fuels
  • Smarter CO₂ reuse for building materials, chemicals, and synthetic fuels
  • Falling costs through standardization and modular design

With global support, carbon capture could play a crucial role in cutting industrial emissions and enabling a smooth transition to a net-zero economy.

Why Carbon Capture Matters for Corporate Climate Strategies

For companies with unavoidable emissions, carbon capture represents a bridge technology—allowing them to meet sustainability commitments while transitioning to cleaner energy systems.

By adopting or supporting carbon capture, corporations can:

  • Permanently reduce industrial emissions
  • Support the buildout of low-carbon infrastructure
  • Demonstrate credible progress toward net-zero goals

FAQ: Can Small Companies Support Carbon Capture?

Yes. Businesses of all sizes can purchase verified carbon capture credits or partner with carbon capture projects through climate initiatives and marketplaces, enabling broader participation in scaling the technology.

Conclusion

Carbon Capture Technology is a cornerstone of the world’s net-zero transition. While it cannot replace emission reductions, it complements them by tackling emissions that are otherwise unavoidable.

By combining carbon capture with renewable energy, efficiency improvements, and carbon removal technologies, the path to a stable climate becomes achievable.

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