Carbon capture and storage stocks to invest in 2025

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.

Leave a Comment