Carbon capture and sequestration (CCS) covers a range of technologies: capturing CO2 from large point sources (power plants, refineries, cement and steel facilities) before it is emitted, and direct air capture (DAC) of CO2 already in the atmosphere. Captured CO2 is typically injected into deep underground formations for long-term storage, or used for enhanced oil recovery.
The 45Q federal tax credit, significantly expanded by the Inflation Reduction Act, pays operators per ton of CO2 captured and stored, with higher rates for direct air capture. The Bipartisan Infrastructure Law funded large DAC and CCS hub projects. Several major industrial facilities and pipelines for CO2 transport are now under development.
Supporters argue CCS is essential for hard-to-decarbonize sectors and for net-negative emissions. Critics question commercial viability, point to a record of failed projects, and worry CCS extends fossil-fuel lifelines rather than displacing them.