But what benefits of carbon capture and storage technologies are worth your attention and funding? Let’s see how you can capitalize on this trend.

What is CCS and how is it done? 

For business owners, CCS is a way to move towards a low-carbon model by “greening” energy production and operations. If we’re talking science, you can apply carbon capture and storage systems to remove CO2 emissions from stationary sources or processes, store them in underground reservoirs, and reuse them in other industries. It helps mitigate your enterprise’s carbon footprint and implement enhanced oil recovery (EOR). 

How does carbon capture work? 

CCS is a three-stage process that includes: 

  1. Capturing CO2 from various industrial sites and compressing it with the proper methods 
  1. Transporting trapped CO2 to a storage location via road transport, pipelines, or tankers 
  1. Long-term storing of captured carbon in geological formations away from the atmosphere 

Hard-to-decarbonize plants across the globe are implementing CCS to future-proof operations and remain resilient in the long run. This is because one of the critical benefits of carbon capture and storage technology is its ability to neutralize around 90% of CO2 emissions. 

How to capitalize on the carbon capture and storage trend in 5 simple steps 

Whether you plan to build your own carbon capture and storage solution or invest in an existing one, you should understand what you’re dealing with. So, here are our hands-on recommendations you can leverage to reap the benefits of the carbon capture and storage model. 

#1 Select the right approach 

There are three main types of CO2 capture to navigate: 

types of CO2 capture
  • What is pre-combustion carbon capture? 

In pre-combustion carbon capture, you remove carbon before the actual combustion process by converting fuel into a mix of hydrogen and CO2 with heat. Then, you isolate and burn hydrogen to produce energy and transport the compressed CO2 to a storage facility. You’ll have to incorporate the required infrastructure as you build a new power plant to apply this type of carbon capture and storage in your production. But the effort pays off as pre-combustion capture is less energy-consuming and offers higher capture rates than post-combustion. 

  • What is post-combustion? 

Here you bind and separate CO2 from other greenhouse gases after combustion using a liquid solvent and gas separator. This is the most widely applied carbon capture and storage technology because it allows reusing CO2 at a storage facility and can be added to existing sites. However, this method requires high capital costs and heavily equipped infrastructure that consumes more energy. 

  • What is oxyfuel? 

This approach is applicable only in specific cases when you process fuel in pure oxygen-rich environments. After you cool and liquefy CO2 and water vapor in a boiler or gas turbine, you can dehydrate and compress carbon for further transportation. It also allows the use of generated steam to power your turbines or produce electricity. Moreover, the oxyfuel  method is costly but can be integrated at some types of existing plants and offers the possibility of complete CO2 removal. 

#2 Create a business plan 

Would you buy a big share of carbon capture stocks, or would you migrate your plant to a carbon capture and storage business model? Whatever you choose, there are costs to consider beforehand. Numerous studies over the past decade have emphasized the possibility of reducing OpEx and CapEx by around 30-70% when equipping your facilities with CCS. It’s just much easier to do through technology refinement, retrofitting, and continuous efficiency improvements from a first-generation site to the next. 

What you can do to future-proof your CCS projects: 

  • Explore existing low-carbon business models to develop your own financial strategy 
  • Elaborate risk management strategies and anti-crisis plans 
  • Calculate the expected revenues and possible losses (for each carbon capture stock, for instance) 
  • Communicate your business plan to all stakeholders and get their support 
  • Collaborate with governmental organizations to win their substantial support or even funding 
  • Partner with other CCS providers and innovators to create a network and join forces for large-scale constructions 

Yes, you’ll invest heavily, but a potential ROI is worth it. Official estimates state that a CCS approach can save you 40% of the expenses you’ll need to meet the 50% global emissions reduction by 2050. Sounds promising, doesn’t it? 

save costs for next-gen carbon capture and storage projects

#3 Opt for tech advancements 

The latest Industry 4.0 achievements are what you need when it comes to carbon capture and storage systems. So, we advise investigating the carbon capture stock market to find Big Tech companies that develop highly advanced and efficient CCS solutions with high capture capacity. 

CO2 capture tech

For instance, check inventions in the direct air or compact carbon capture fields. Companies like Baker Hughes, Carbon Clean, and Mitsubishi Heavy Industries develop groundbreaking bite-sized capture tech with modular designs that promote more widespread use for small and mid-size businesses. What’s more, manufacturers expect smaller systems like these to capture around 95% of CO2 emissions. 

#4 Leverage the benefits of carbon capture and storage 

You might not be a leading climate change activist, but your investors and customers most likely are. So, a low-carbon business model is what will help you secure their loyalty. As society shifts toward renewable energy and net-zero initiatives, you can use CCS advantages to accelerate changes while maintaining your O&G business continuity. 

Top 8 opportunities in the carbon capture and storage sector: 

  1. Increase power generation with CO2 steam cycles 
  1. Improve your on-site waste management 
  1. Optimize fuel consumption and oil production 
  1. Unlock new revenue streams with eco-friendly services 
  1. Boost the quality of natural gas by removing CO2 from it 
  1. Reduce facility management and maintenance costs 
  1. Safeguard existing on-site jobs and create new ones 
  1. Produce new materials using CO2 (concrete, hydrocarbons, polyurethanes) 

global carbon capture and storage hubs

#5 Invest in CCS strategically 

The carbon capture stock market offers plenty of options to benefit your portfolio, and it’ll only skyrocket in the next decade. So, you’ll not only fund energy transition initiatives but also profit from a billion-dollar industry while the competition is still relatively low. 

How can you buy the perfect carbon capture stock? There is no universal recipe—you know that investing is a risky business. We can advise starting with established carbon capture and storage market players in the USA, Europe, and Japan. Diversify your portfolio as much as possible to manage disruptions proactively. 

The 5 best carbon capture stocks to invest in 2022-2023: 

  1. Aker ASA (AKER: NO) 
  1. Exxon Mobil (NYSE: XOM) 
  1. Equinor (NYSE: EQNR) 
  1. Occidental Petroleum (NYSE: OXY) 
  1. NRG Energy (NYSE: NRG) 

Summing up, you have a great chance to capitalize on the new climate legislation and CCS solutions by cutting your emissions and earning money in the process. 

companies that invest in CCS

What does the future hold for carbon capture and storage tech and stocks? 

Positive outcomes in the CO2 footprint mitigation field will only increase demand for EOR and advanced carbon capture and storage projects. It means investments in CCS technologies can bring you substantial ROI, open up new markets, and attract stakeholders motivated to drive decarbonization. Moreover, carbon capture stocks will remain resilient and lucrative, so getting the ball rolling now will help you avoid tight competition and overspending. Considering all this, who wouldn’t want some carbon capture and storage stocks in their portfolio to gain a competitive advantage? 

future of the carbon capture and storage sector