Commodities
Carbon Capture Capacity Set to Grow Over Next Decades Despite Challenges, Wood Mackenzie Says
Global carbon capture capacity is expected to expand to about 3 billion tons per year in 2060 from the current 91 million tons per year, as industries address climate change despite challenges in costs and policy support, Wood Mackenzie said on Tuesday.The research firm still sees "strong" growth in the carbon capture, utilization, and storage sector in the coming decades as industries use the technology to reduce emissions, despite a recent slowdown in capacity additions following rapid development from 2019 to 2024.The total volume of CCUS capacity under construction worldwide grew 9% from Q4 2025 to Q1 2026, according to Wood Mackenzie, while that in advanced development rose 23%.However, the capacity in early-stage development dropped 7%, "suggesting the industry is in a phase of consolidation rather than rapid growth," the research firm said.Going forward, Wood Mackenzie believes that CCUS can still play a critical role in decarbonizing hard-to-abate industrial sectors, such as cement, steel and fertilizers, where there are only limited alternatives to carbon capture.In power generation, CCUS also provides a way to produce low-carbon electricity while using fossil fuels, such as gas and coal, as raw materials.The firm noted that "power from gas-fired plants with CCUS would cost more than enhanced geothermal generation, but less than new nuclear plants, including small modular reactors."Big technology companies that drive investments in the US, however, may still opt for other low-carbon electricity options aside from carbon capture, as CCUS buildout typically needs more time."Over time, however, fossil fuel power plants with CCUS could become part of the mix for supplying low-carbon electricity," Wood Mackenzie said.As CCUS becomes a part of global strategies to address global warming, the research firm remains optimistic about its growth despite the current low carbon prices hindering near-term expansion.