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.

By
Pierre-Louis Christiane
Published:
Oct 10, 2025
Updated:
Dec 4, 2025
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Carbon Capture Technology (CCT) plays a vital role in global climate mitigation efforts. While transitioning to renewable energy is 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 cleaner solutions scale.

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

What is Carbon Capture Technology?

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

Once captured, 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

CCT generally involves three key stages:

  1. Capture:
  2. CO₂ is separated from industrial exhaust gases using solvents, membranes, or solid sorbents.
  3. Compression and Transport:
  4. 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 such as depleted oil and gas reservoirs or saline aquifers (Sirona Remove CO₂ projects).
    • Utilization: Converting CO₂ into useful products like 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 CDR or reforestation) remove existing CO₂ from the atmosphere. Both are essential: capture limits future damage, removal cleans up past emissions.

Benefits of Carbon Capture Technology

  • Immediate Impact: Deployable now to cut emissions from existing industrial infrastructure.
  • Industrial Compatibility: Enables hard-to-abate sectors (steel, cement, chemicals) to operate sustainably.
  • Enhanced Oil Recovery (EOR): Captured CO₂ can boost oil recovery, though this may prolong fossil fuel reliance.
  • Scalability: Leverages existing energy infrastructure, pipelines, and geological formations.
  • Economic Opportunity: Creates markets for carbon-based products and 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 exceed 1 gigaton of CO₂ per year by 2030—equivalent to the annual emissions of 200 million cars (IEA Carbon Capture Report).

Types of Carbon Capture Technologies

  1. Post-Combustion Capture: CO₂ captured from exhaust gases after fuel combustion (common in power plants).
  2. Pre-Combustion Capture: CO₂ removed before fuel is burned, mainly in hydrogen and gasification systems.
  3. Oxy-Fuel Combustion: Fuel burns in pure oxygen, producing a concentrated CO₂ stream.
  4. Industrial Process Capture: Applied directly within cement, steel, and chemical plants.

Current Carbon Capture Companies

  • Shell: Quest CCS facility in Canada, storing over 1 million tons of CO₂ annually.
  • ExxonMobil: Global carbon capture hubs, including Houston CCS project.
  • Occidental Petroleum / 1PointFive: Combining DAC and point-source capture.
  • Equinor: Northern Lights project in Norway.
  • Chevron: Expanding CCS across refineries and gas processing.
  • Linde: Industrial gas separation systems for heavy industry.

Companies Using Carbon Capture for Climate Goals

  • BP: Multiple CCS projects including Net Zero Teesside in the UK.
  • TotalEnergies: CCUS projects across Europe, decarbonizing refineries.
  • ArcelorMittal: Carbon capture systems at steel plants.
  • Heidelberg Materials: Carbon-neutral cement plant at Brevik, Norway.
  • Air Products: Largest blue hydrogen facility in Texas with CCT.
  • BASF: Integrating CCT in chemical production for carbon-neutral materials (Microsoft Climate Goals).

FAQ: How Much Does Carbon Capture Cost?

  • Industrial and power capture: $40–$120 per ton CO₂
  • Transportation and storage: $10–$20 per ton

Costs are expected to decline with standardized CO₂ transport networks and modular infrastructure.

Energy and Infrastructure Requirements

Carbon capture requires energy to separate and compress CO₂. Using low-carbon power reduces the footprint. Successful deployment also depends on:

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

Challenges and Limitations

  • High upfront infrastructure costs
  • Limited storage in certain regions
  • Public perception regarding CO₂ safety
  • Dependency on fossil fuel operations when used for EOR
  • Policy uncertainty affecting investments

The Future of Carbon Capture

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

With global support, CCT could significantly reduce industrial emissions and enable a smooth transition to net-zero.

Why Carbon Capture Matters for Corporate Climate Strategies

For companies with unavoidable emissions, carbon capture is a bridge technology, allowing credible progress toward sustainability while cleaner energy systems mature.

Supporting carbon capture enables businesses to:

  • Permanently reduce industrial emissions
  • Build low-carbon infrastructure
  • Demonstrate net-zero progress (Apple Climate Goals)

Small companies can participate through verified carbon capture credits or partnerships, scaling CCT adoption broadly.

Conclusion

Carbon Capture Technology is essential for net-zero transitions. While it cannot replace emission reductions, it complements them by tackling unavoidable emissions. Combining carbon capture with renewable energy, efficiency, and carbon removal technologies creates a viable path to climate stability.

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