Carbon Capture, Utilization & Storage and the Path to Carbon-Free Electricity in the United States
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The United States faces a defining challenge in achieving 100% carbon-free electricity by 2035. Carbon Capture, Utilization, and Storage (CCUS) has emerged as a potential tool, capable of preventing carbon dioxide emissions from fossil fuel combustion or removing CO₂ directly from the atmosphere (National Energy Technology Laboratory [NETL], 2023). However, due to significant technological, economic, and political barriers, the United States should prioritize renewable energy development while deploying CCUS in a targeted, supplementary role.
CCUS includes two primary approaches: combustion capture (CC), which captures emissions at fossil fuel facilities, and direct air capture (DAC), which removes CO₂ from ambient air (NETL, 2023). While promising, both face practical limitations. CC systems can capture up to 90% of emissions but require significantly more water and reduce plant efficiency by 10–40% (Eldardiry & Habib, 2018). DAC remains even more resource-intensive and is currently limited in scale (Lebling et al., 2022). Despite substantial federal investment, including billions in recent funding announcements, large-scale deployment remains limited (NETL, 2022). As of 2020, only 13 CCUS projects operated in the United States, capturing less than 0.4% of national emissions (Clean Air Task Force [CATF], 2022; Environmental Protection Agency [EPA], 2023).
The economic outlook for CCUS is similarly constrained. Projects involve high capital and operating costs with limited revenue potential, making them heavily dependent on subsidies such as federal tax credits (National Regulatory Research Institute [NRRI], 2022; Gonzales et al., 2020). This reliance raises concerns about long-term scalability and cost-effectiveness, particularly when compared to renewable energy technologies that have rapidly declined in cost.
Renewable energy presents a more viable pathway. Wind, solar, and battery storage have achieved significant cost reductions and widespread deployment. Research indicates the United States could reach approximately 90% renewable electricity by 2035 without increasing consumer costs (Goldman School of Public Policy, University of California, Berkeley [GSPP], 2020). At the same time, roughly 73% of existing fossil fuel capacity is expected to retire by 2035, creating a natural transition point for clean energy infrastructure (Grubert, 2020).
However, renewables alone are unlikely to meet 100% of electricity demand in the near term. The remaining gap, estimated at about 10%, represents an appropriate niche for CCUS deployment (GSPP, 2020). In this role, CCUS can support grid reliability and address residual emissions without serving as the primary decarbonization strategy.
Political and social factors further complicate widespread CCUS adoption. Public concerns regarding safety, cost, and infrastructure siting persist, and the technology remains closely tied to continued fossil fuel use (Pianta et al., 2021). A limited, targeted deployment strategy helps mitigate these concerns while allowing the technology to mature.
In conclusion, the United States should adopt a renewable-first strategy supported by CCUS in a complementary role. This approach reflects current technological and economic realities while maintaining flexibility as CCUS capabilities evolve.
References
Clean Air Task Force. (2022, May 16). Interactive map of CCUS projects in development in the U.S. https://www.catf.us/2020/07/ccus-interactive-map/
Eldardiry, H., & Habib, E. (2018). Carbon capture and sequestration in power generation: Review of impacts and opportunities for water sustainability. Energy, Sustainability and Society, 8(1). https://doi.org/10.1186/s13705-018-0146-3
Environmental Protection Agency. (2023). Greenhouse gas inventory data explorer. https://cfpub.epa.gov/ghgdata/inventoryexplorer/
Goldman School of Public Policy, University of California, Berkeley. (2020). 2035 report: Plummeting solar, wind, and battery costs can accelerate our clean energy future. https://www.2035report.com/wp-content/uploads/2020/06/2035-Report.pdf
Gonzales, V., Krupnick, A., & Dunlap, L. (2020). Carbon capture and storage 101. Resources for the Future. https://www.rff.org/publications/explainers/carbon-capture-and-storage-101/
Grubert, E. (2020). Fossil electricity retirement deadlines for a just transition. Science, 370(6521), 1171–1173. https://doi.org/10.1126/science.abe0375
International Energy Agency. (2020). CCUS in clean energy transitions. https://www.iea.org/reports/ccus-in-clean-energy-transitions
Lebling, K., Leslie-Bole, H., Byrum, Z., & Bridgwater, L. (2022, May 2). 6 things to know about direct air capture. World Resources Institute. https://www.wri.org/insights/direct-air-capture-resource-considerations-and-costs-carbon-removal
National Energy Technology Laboratory. (2022). Biden-Harris Administration announces $3.7 billion to kick-start America's carbon dioxide removal industry. U.S. Department of Energy. https://netl.doe.gov/node/12239
National Energy Technology Laboratory. (2023). Carbon capture technologies. U.S. Department of Energy. https://netl.doe.gov/carbon-management/carbon-capture
National Regulatory Research Institute. (2022). The economics of carbon capture and sequestration. Funded by the U.S. Department of Energy, National Energy Technology Laboratory. https://pubs.naruc.org/pub/5E2BBD6A-1866-DAAC-99FB-BAD3DC5213C2
Pianta, S., Rinscheid, A., & Weber, E. U. (2021). Carbon capture and storage in the United States: Perceptions, preferences, and lessons for policy. Energy Policy, 151, 112149. https://doi.org/10.1016/j.enpol.2021.112149