Also known as carbon capture and storage (CCS), this is the process of capturing carbon dioxide (CO₂) (the most commonly produced greenhouse gas (GHG)) from power plants and other large industrial facilities or the atmosphere and then transporting it by pipeline or ship (as a pressurized cryogenic liquid), to be stored or injected in underground geological reservoirs (for example, depleted oil and gas fields or deep saline aquifer formations).

Alternatively, the captured CO₂ may be used or recycled to make products (for example, chemicals, fuels, cements, and plastics). When used or recycled instead of only stored, this process is referred to carbon capture and utilization (CCU) or carbon capture, utilization, and sequestration (CCUS).

It is estimated that carbon capture technology can capture up to 90% of the CO_₂ emissions produced from the use of fossil fuels in electricity generation and industrial processes. However, this will require significant government support in the form of tax credits, research and development funding, and other subsidies and capital investment from the private sector.

For more information on CCS, CCU, and CCUS projects, see Practice Notes, Understanding the Carbon Capture, Utilization, and Sequestration (CCUS) Value Chain and Regulatory and Real Property Considerations for Carbon Capture and Sequestration (CCS) Projects and Article, US Project Finance: Key Developments and Trends from 2021 and the Outlook for 2022.