Carbon Capture Technology: How It Works, Types & Companies

Carbon capture technology separates carbon dioxide (CO₂) from the exhaust of power plants and industrial sites, or directly from the air, so it can be stored underground or turned into products instead of entering the atmosphere. It is often called carbon capture, utilization and storage (CCUS). Last updated October 2026.

This guide explains how carbon capture works, the main types of technology, the companies and projects involved, what it costs, and where it fits alongside carbon removal.

Carbon Capture at a Glance

• What it is: technology that captures CO₂ from large emission sources, compresses it, and stores or reuses it.
• Who needs it: industries with hard-to-avoid process emissions, such as cement, steel, chemicals and hydrogen, plus some power plants.
• Status in 2025: the Global CCS Institute counted 77 operational projects, up 54% from 50 a year earlier, with 47 more in construction and 610 in development.
• Key distinction: point-source capture prevents new emissions; carbon removal takes CO₂ that is already in the atmosphere out of it.

What Is Carbon Capture Technology?

Carbon capture technology is a set of methods to capture CO₂ from large emission sources, such as power plants, cement kilns and refineries, before it reaches the atmosphere. Once captured, CO₂ can be:

• Stored underground in deep geological formations, such as saline aquifers or depleted oil and gas reservoirs, for permanent storage
• Reused or converted into products such as fuels, building materials or chemicals

Unlike Direct Air Capture (DAC), which removes CO₂ already in the atmosphere, point-source carbon capture prevents CO₂ from being emitted in the first place.

How Carbon Capture Works

Carbon capture generally has three stages:

1. Capture: CO₂ is separated from industrial exhaust using solvents, solid sorbents, membranes or other methods. Many systems are designed to capture around 90% of the CO₂ in the gas stream they treat.
2. Compression and transport: captured CO₂ is compressed and moved by pipeline, ship, rail or truck to a storage or utilization site.
3. Storage or utilization:
   • Storage: injecting CO₂ deep underground into suitable geological formations (Sirona Remove CO₂ projects).
   • Utilization: converting CO₂ into products such as synthetic fuels, concrete or polymers.

Is Carbon Capture the Same as Carbon Removal?

No. Carbon capture at a smokestack prevents new emissions, while carbon removal (such as carbon dioxide removal, DAC or reforestation) takes existing CO₂ out of the air. Capture limits future damage; removal helps clean up past emissions. Both are needed.

Types of Carbon Capture Technologies

By Where in the Process CO₂ Is Captured

1. Post-combustion capture: CO₂ is removed from exhaust gas after fuel is burned. Common at power plants and can be added to existing facilities.
2. Pre-combustion capture: CO₂ is removed before fuel is burned, mainly in hydrogen production and gasification.
3. Oxy-fuel combustion: fuel burns in nearly pure oxygen, producing a concentrated CO₂ stream that is easier to capture.
4. Industrial process capture: applied directly to cement, steel, chemicals and gas processing, where CO₂ comes from the process itself, not only from fuel.

By Separation Method

• Solvents (such as amines): chemical liquids that absorb CO₂ and release it when heated. This is the most widely deployed approach.
• Solid sorbents: solid materials that adsorb CO₂ and can be regenerated.
• Membranes: thin barriers that let CO₂ pass through more easily than other gases.
• Cryogenic separation: cooling gas until CO₂ condenses.

Carbon Capture Companies and Projects

Operators and Projects

• Shell: operates the Quest facility in Canada, which captures CO₂ from hydrogen production and stores it underground at around 1 million tonnes a year.
• Equinor, Shell and TotalEnergies (Northern Lights): the Norwegian transport and storage project started operations in August 2025. Its first phase can store 1.5 million tonnes of CO₂ a year in a reservoir about 2,600 metres under the seabed.
• Heidelberg Materials: its Brevik cement plant in Norway is capturing CO₂ that is shipped to Northern Lights for storage.
• Occidental / 1PointFive: combines point-source capture and Direct Air Capture in the United States.
• ExxonMobil: a long-standing operator of CO₂ capture at gas processing plants, with proposed Gulf Coast storage hubs.
• BP: a partner in the Net Zero Teesside Power project in the UK.

Technology Providers

Companies that supply capture technology include Shell Cansolv, Mitsubishi Heavy Industries, SLB Capturi (formerly Aker Carbon Capture), Fluor, Carbon Clean and Svante. They offer solvent and solid-sorbent systems for power and industrial customers.

Companies Using Carbon Capture for Climate Goals

Cement, steel, chemicals, hydrogen and energy companies are the main users, because their process emissions are hardest to avoid. Many other companies pair emissions cuts with carbon removal purchases, as seen in Microsoft's climate goals and Apple's climate goals.

How Much Does Carbon Capture Cost?

Costs vary widely by source. Capturing CO₂ from concentrated streams, such as gas processing, is much cheaper than from dilute streams like cement kiln or power plant exhaust. Commonly cited estimates range from roughly under $30 per tonne for concentrated sources to well over $100 per tonne for dilute ones, before transport and storage, which depend on distance and geology. Costs tend to fall as shared pipelines, shipping and storage hubs are built.

Benefits of Carbon Capture Technology

• Works with existing industry: can be added to current plants.
• Tackles hard-to-abate emissions: cement and chemicals release CO₂ from the process itself, not just from fuel.
• Builds shared infrastructure: hubs can serve many emitters.
• Creates markets: for stored CO₂, low-carbon products and skilled jobs.

Enhanced Oil Recovery (EOR)

Some captured CO₂ is used to boost oil production. This can improve project economics but is controversial, since it can extend fossil fuel production.

Energy and Infrastructure Requirements

Capturing and compressing CO₂ takes energy, so the energy source matters. Successful deployment also depends on:

• Pipeline or shipping infrastructure for transport
• Suitable geological storage near emitters
• Policy support and carbon pricing

Challenges and Limitations

• High up-front infrastructure costs
• Limited storage in some regions
• Energy use for capture and compression
• Public concern about CO₂ transport and storage
• Policy uncertainty affecting investment decisions
• Capture rates below 100%, so residual emissions remain

The Future of Carbon Capture

• Regional hubs with shared transport and storage, such as Northern Europe and the US Gulf Coast
• Links with low-carbon hydrogen and industrial clusters
• CO₂ reuse in materials, chemicals and fuels
• Falling costs through standardization and modular design

The growth in operational projects shows the technology is moving from pilots to deployment, though 77 operating projects is still small compared with the scale needed for net zero.

Why Carbon Capture Matters for Corporate Climate Strategies

For companies with unavoidable emissions, carbon capture is a bridge technology while cleaner systems mature. Businesses can:

• Permanently reduce industrial emissions at the source
• Support low-carbon infrastructure
• Combine capture with carbon removal to address what remains

Smaller companies can take part by buying verified carbon removal or joining partnerships.

Frequently Asked Questions About Carbon Capture Technology

What is carbon capture technology?

Technology that captures CO₂ from industrial sources or the air and stores it permanently or reuses it, instead of letting it enter the atmosphere.

Does carbon capture work?

Yes, at scale in several sectors. There are 77 operational projects worldwide, according to the Global CCS Institute's 2025 report. Performance varies by source, and capture rates are below 100%.

What are the main types of carbon capture?

Post-combustion, pre-combustion, oxy-fuel and industrial process capture, using solvents, solid sorbents, membranes or cryogenic separation.

What is the difference between carbon capture and direct air capture?

Point-source carbon capture treats exhaust at the emission site. Direct Air Capture pulls CO₂ from ambient air, which removes it from the atmosphere.

Which companies are leaders in carbon capture?

Operators and partners include Shell, Equinor, TotalEnergies, Heidelberg Materials, Occidental and ExxonMobil. Technology providers include Shell Cansolv, Mitsubishi Heavy Industries, SLB Capturi, Carbon Clean and Svante.

Is carbon capture enough to reach net zero?

No. It complements cutting emissions with efficiency and clean energy, and carbon removal for what remains.

Conclusion

Carbon capture technology is a key tool for cutting hard-to-avoid emissions. It cannot replace emission reductions, but combined with renewables, efficiency and carbon removal it creates a credible path to climate stability.

Explore related resources:

• Direct Air Capture (DAC) Guide
• Carbon Dioxide Removal (CDR) Guide
• Sirona Remove CO₂ Projects
• IEA: Carbon capture, utilisation and storage

Sources

Global CCS Institute: Global Status of CCS 2025 and Baird Maritime: Northern Lights starts operations.