How Federal Funding Is Mapping America’s CO₂ Pipelines

Targeted DOE funding is accelerating planning and early development of shared CO₂ pipelines, reducing risk and laying groundwork for large-scale carbon capture

17 Dec 2025

A modest but significant shift is taking place in the US energy sector as federal funding accelerates planning and early development of carbon dioxide transport infrastructure, laying the groundwork for large-scale carbon capture.

Rather than a wave of construction, the current phase is centred on project design, financing and early-stage engineering. The aim is to remove one of the main barriers to carbon capture: the lack of reliable and affordable pipelines to move CO₂ from industrial sites to storage locations.

The catalyst is targeted support from the Department of Energy, which has launched funding programmes totalling up to about $500mn to expand CO₂ transport infrastructure. The funding is intended to reduce investment risk and help developers move projects from concept towards execution.

For years, transport has been the weakest link in the carbon capture value chain. Capture projects have struggled to reach final investment decisions without certainty over how and where emissions would be moved and stored.

That dynamic is beginning to change. Developers are increasingly focused on shared, open-access pipeline networks that can serve multiple industrial users. Proponents say this model can lower per-ton transport costs, limit land disruption and produce assets that are more attractive to long-term investors. Analysts note that most projects remain at an early stage, but see the combination of funding and planning as a meaningful step.

Large energy groups are positioning themselves for a gradual build-out. ExxonMobil’s acquisition of Denbury, which owns an extensive CO₂ pipeline network, has given it immediate scale in carbon transport. Kinder Morgan, a long-standing operator of CO₂ pipelines for enhanced oil recovery, has said carbon capture, utilisation and storage could become a larger part of its strategy. Occidental, which already has CO₂ handling and storage operations, is also seen as well placed.

Beyond individual companies, state governments and industrial hubs are coordinating around proposed pipeline corridors to compete for federal funding and manufacturing investment. Supporters point to potential job creation and long-lived infrastructure tied to a lower-carbon economy.

Significant hurdles remain. Safety rules and permitting frameworks are still evolving, public acceptance is uncertain and many projects must prove they can stand without federal backing. Even so, most observers see the current phase as a foundation rather than a false start.

If policy support and corporate interest persist, early planning today could shape the backbone of future US carbon management infrastructure.