WoodMac: CCUS Growth Continues Despite Project Delays, Policy Challenges

Wood Mackenzie expects global CCUS capacity to grow significantly through 2060 despite project delays, permitting challenges and policy uncertainty, with carbon capture remaining critical for hard-to-abate industries.

(P&GJ) — Carbon capture, utilization and storage (CCUS) projects continue to advance despite policy uncertainty, infrastructure constraints and local opposition, with global carbon capture capacity projected to grow from about 91 million metric tons per year today to approximately 3 billion metric tons annually by 2060, according to a new analysis from Wood Mackenzie.

While the pace of new project announcements has slowed, Wood Mackenzie said existing projects continue to move forward. Global CCUS capacity under construction increased 9% between the fourth quarter of 2025 and the first quarter of 2026, while projects in advanced development rose 23%. Early-stage development, however, declined 7%, suggesting the industry is shifting from rapid expansion toward project execution.

The report notes that CCUS continues to face economic and political challenges, including permitting delays, community opposition and the need for government incentives to support project economics. Recent political debate in Louisiana illustrates growing public scrutiny of carbon capture infrastructure, even in regions with deep oil and gas industry roots.

Despite those headwinds, Wood Mackenzie said CCUS remains one of the few commercially viable decarbonization pathways for hard-to-abate industries such as cement, steel and fertilizer production.

The firm also expects carbon capture to play an increasing role in power generation, particularly as natural gas-fired plants equipped with CCUS compete with other dispatchable low-carbon generation technologies.

Large technology companies have so far taken a cautious approach to direct CCUS investments, according to the report, although firms including Google, Microsoft, Stripe, Salesforce and Anthropic continue supporting carbon removal primarily through carbon credit purchases.

Wood Mackenzie said broader adoption of CCUS will likely depend on stronger policy support and higher carbon prices, but the technology is expected to remain an important component of long-term decarbonization strategies.

"CCUS cannot be a complete solution to the challenge of global warming. But in some sectors, especially where few alternatives exist, it can play a vital role."