Every energy company, it seems, wants to get into the act to advance carbon capture for their natural gas and oil operations, as well as their petrochemical facilities. Dozens of U.S. projects are on the design table, but many remain in limbo, as investors await clarity about permitting, financing and tax breaks.

Many energy industry experts view carbon capture utilization and sequestration (CCUS) as a necessary component for the world to achieve its net-zero carbon ambitions by mid-century. Is it possible? According to Wood Mackenzie researchers, it is, but there are hurdles to jump.

“Energy efficiencies, renewables and alternative fuels will not be enough to meet net zero by 2050,” said Wood Mackenzie’s Mhairidh Evans, who leads the CCUS global research. “We need a...