Carbon capture and storage (CCS) is poised for rapid expansion, with global investment projected to hit $80 billion within the next five years, according to a new report from DNV titled Energy Transition Outlook: CCS to 2050.
The report, released by the global energy advisory and certification group, highlights that while CCS deployment has been modest so far — mostly limited to demonstration and pilot projects — a significant uptick is now underway.
By 2030, total capture and storage capacity is expected to increase fourfold, signaling a key moment in the technology’s evolution. This near-term growth is primarily being driven by developments in North America and Europe, with natural gas processing continuing to dominate as the main use case.
Over the longer term, CCS will become vital for curbing emissions from heavy industries like steel and cement, which are notoriously difficult to decarbonize.
These sectors are projected to account for 41% of the annual carbon captured by 2050. Shipping is also expected to adopt onboard carbon capture beginning in the 2040s.
Currently, around 41 million metric tons of CO2 are captured and stored each year. DNV forecasts that this figure will grow to 1.3 billion tons annually by 2050, equivalent to 6% of global emissions. However, reaching net-zero goals will require CCS deployment to reach six times this level.
Policy support remains essential for CCS to grow, but political instability and shifting fiscal priorities could threaten momentum. Despite this, Europe is on track to outpace North America in CCS deployment, thanks to stronger financial incentives.
Relevant: US EPA Moves To Undo Emissions Rules For Power Plants
Carbon dioxide removal (CDR) technologies will also play a critical role, capturing an estimated 330 million tonnes of CO2 annually by 2050. Among these, bioenergy with carbon capture and storage (BECCS) is expected to dominate due to its cost-effectiveness, particularly in biomass power and manufacturing.
Direct air capture (DAC), while significantly more expensive —costing about $350 per ton through 2050 — is still anticipated to contribute 84 million tons annually by that time, buoyed by both compliance and voluntary carbon markets.
With global emissions reductions lagging behind, DNV underscores the growing importance of CDR in offsetting the overshoot in the planet’s carbon budget.
Read more: UK Spending Review 2025 Sees Increased Investments In Carbon Capture
