A $500M Push to Unclog America’s CO₂ Pipelines

A $500M DOE funding opportunity is easing risk for CO₂ pipelines, while corporate moves reflect rising confidence in carbon transport infrastructure

15 Dec 2025

For years, carbon capture has had a quiet problem. Capturing emissions is one thing. Moving them to safe storage is another. That missing link may finally be getting attention.

The US Department of Energy has reopened a funding opportunity worth up to $500 million for CO₂ transportation projects. The move signals a shift in federal priorities, placing new weight on pipelines that carry captured emissions to underground storage. Awards have not yet been announced, but the message is clear. Transport is no longer an afterthought.

Carbon capture technology has advanced faster than the pipes needed to support it. Without transport, even proven capture projects struggle to move beyond planning. The latest DOE program aims to narrow that gap by offering loans and credit support that reduce upfront risk for developers and investors.

A major focus is shared pipeline systems. Rather than one-off lines serving a single plant, the government is encouraging regional networks that connect multiple industrial sites. The approach spreads cost, lowers risk, and fits better with long-term decarbonization plans.

Private industry has already been moving in this direction. Exxon’s purchase of Denbury’s CO₂ pipeline network last year was an early signal that carbon transport assets could carry strategic value. Analysts saw the deal as a vote of confidence, shaped by climate policy incentives and expectations of future demand.

Transport capacity is increasingly viewed as the bottleneck. With pipelines in place, capture projects gain certainty on cost and timing. Industries like cement, steel, and refining are paying close attention. Shared pipelines could offer a realistic path to cutting emissions without rebuilding entire facilities.

Obstacles remain. CO₂ pipelines face questions around safety, land use, and environmental impact. Permitting can take years, and local resistance has slowed projects in several states. Developers say clearer rules and early engagement will be essential.

Even so, the market tone is shifting. Federal funding, paired with high-profile acquisitions, is changing how companies think about carbon infrastructure. What once looked like a niche bet is starting to resemble a core investment.