Carbon capture and storage (CCS) technologies are gaining traction as essential tools in reducing industrial CO₂ emissions and achieving global climate targets. As governments and corporations ramp up decarbonization efforts, companies developing and deploying CCS solutions present compelling investment opportunities for 2025.
Why invest in CCS?
- Climate urgency: CCS is critical for hard-to-abate sectors like cement, steel, and natural gas power plants.
- Policy support: Incentives like the U.S. 45Q tax credit and EU funding boost CCS project economics.
- Technological progress: Advances lower costs and improve capture efficiency.
- Growing project pipeline: Increasing commercial-scale CCS projects worldwide.
Top CCS stocks to consider
1. Occidental Petroleum Corporation (NYSE: OXY)
- Position: Leading CCS adopter integrating capture with enhanced oil recovery (EOR)
- Projects: Largest direct air capture facility (100,000+ tons/year) and several industrial CCS projects
- Strategy: Investing billions to scale CCS and achieve net-zero emissions goals
2. Linde plc (NYSE: LIN)
- Role: Industrial gas company providing CO₂ capture technologies and infrastructure
- Capabilities: Engineering, procurement, and construction (EPC) of CCS plants globally
- Growth: Expanding CCS offerings as carbon management demand rises
3. Schlumberger Limited (NYSE: SLB)
- Focus: Oilfield services leader diversifying into CCS via carbon storage and monitoring solutions
- Technology: Subsurface expertise supports CO₂ injection and long-term sequestration projects
- Partnerships: Collaborating with energy companies and governments on CCS deployments
4. Shell plc (NYSE: SHEL)
- Investment: Multiple CCS projects including the Quest facility in Canada and planned hubs in Europe
- Vision: Aiming for net-zero emissions by 2050 with CCS as a key pillar
- Scale: Combining CCS with hydrogen and bioenergy projects
5. Exxon Mobil Corporation (NYSE: XOM)
- CCS commitment: Large R&D investments and operational CCS facilities
- Projects: Captures millions of tons of CO₂ annually with plans to expand
- Technology: Focus on next-gen solvents and capture processes
6. Denbury Inc. (NYSE: DEN)
- Specialty: Carbon capture integrated with enhanced oil recovery
- Assets: Operating CO₂ pipelines and storage sites
- Growth: Leveraging CCS to extend oilfield life while reducing emissions
ETFs with carbon capture and climate tech exposure
- Global X CleanTech ETF (CTEC)
- iShares Global Clean Energy ETF (ICLN)
- SPDR S&P Kensho Clean Power ETF (CNRG)
These funds include CCS companies alongside broader clean energy innovators.
Risks and considerations
- Capital intensity: CCS projects require high upfront investment and long payback periods.
- Regulatory uncertainty: Policy changes can significantly impact subsidies and incentives.
- Technology risk: Scaling CCS economically remains challenging.
- Market adoption: Dependent on carbon pricing and emission reduction mandates.
Investing in CCS stocks offers a strategic play on decarbonization technologies essential to achieving net-zero emissions. Focusing on integrated energy majors and technology providers with operational CCS assets and growth plans can position investors to benefit from the expanding carbon management market in 2025.