Why CO₂ Storage, Not Capture, Is the New Battleground

New DOE funding shifts carbon capture from theory to infrastructure, accelerating competition to secure CO₂ storage and pipeline access nationwide

26 Jan 2026

The US government is accelerating efforts to build a national carbon dioxide storage network, signalling a shift in climate policy from carbon capture ambitions to the infrastructure needed to make them viable.

The Department of Energy has selected 23 carbon storage projects across 19 states for funding under the Bipartisan Infrastructure Law, through its CarbonSAFE programme. Together, the projects outline more than 3.3bn metric tonnes of potential CO₂ storage capacity over 30 years, according to the agency.

The scale of the programme is intended to address a critical constraint facing the carbon capture industry, namely the lack of reliable, permitted sites to permanently store captured emissions. Without such sites, many capture projects have struggled to progress beyond planning stages.

By expanding storage capacity, the DOE aims to underpin investment in CO₂ pipelines and transport networks that can move emissions from power plants and industrial facilities to underground reservoirs. Supporters argue this infrastructure is essential if carbon capture is to play a material role in cutting emissions from heavy industry and power generation.

Federal officials have framed the initiative as both a climate and industrial strategy. Large, shared storage hubs could allow multiple emitters to connect to common transport routes, lowering costs and reducing risks for individual projects. This model mirrors the development of other networked energy systems, such as natural gas pipelines.

Developers and investors are already responding. As storage sites advance through permitting and appraisal, competition is expected to intensify among companies seeking early access. Projects tied to confirmed storage and transport options are likely to move more quickly, attract private capital more easily and secure long term customers.

However, significant obstacles remain. CO₂ pipelines face complex permitting processes, land access negotiations and local opposition in some regions. Storage projects themselves require extensive geological assessment and regulatory approval, and delays can arise if capture facilities are built faster than storage sites come online.

Even so, the direction of policy is clear. By prioritising storage alongside capture, federal funding is addressing what many in the industry see as the missing link in the carbon management chain.

For companies following US energy infrastructure, the implications are increasingly commercial rather than theoretical. CO₂ transport and storage is moving from concept to construction, and early control of key assets could shape how the next phase of American industrial development unfolds.