Carbon capture, utilisation and storage projects are shifting from planning to execution, according to the latest update from the International Energy Agency (IEA), with a growing number of large-scale developments reaching final investment decision (FID) or breaking ground in new regions and sectors.
The IEA’s CCUS Projects Database update, covering developments between Q1 2024 and Q1 2025, shows that while overall capture capacity in operation remains modest at just over 50 million tonnes of CO2 per year, the share of projects at advanced stages or under construction has now risen to 60% of the global pipeline.
If all projects under construction are completed, operational capacity would almost double, marking a first since the IEA began tracking CCUS progress.
Several ‘first-of-a-kind’ projects moved forward in 2024. These include the UK’s first natural gas power plant with carbon capture, set to capture two million tonnes of CO2 annually, and the largest carbon dioxide removal (CDR) project to reach final investment: a combined heat and power facility in Sweden.
In China, a cement plant became the first globally to launch large-scale CO2 capture from cement production, while Australia brought online the first major storage project in a depleted gas field.
The report also revealed that the world’s largest CO2 transport and storage project, located in the UK, became the first CCUS project to secure limited-recourse project financing.
Despite a relatively flat rate of new announcements, rather than clear growth, momentum continues to build behind CDR projects such as bioenergy with CCS and direct air capture. In 2024, developers signed offtake agreements for nearly six million tonnes of CO2 removal credits – double the amount seen in 2023.
Looking ahead, the IEA expects further progress in 2025, with the world’s largest cement capture plant due to come online in Norway, along with the largest DAC facility in the US. However, 80% of potential 2030 capture capacity remains concentrated in North America and Europe, raising concerns about geographic imbalances despite growing commitments in China, the Middle East and parts of Southeast Asia.
Carbon capture should be “the centre of the battle” in fighting climate change and delivering Net Zero, according to a new paper from former UK Prime Minister Tony Blair.
