Myth-busting Carbon transport & storage infrastructure: separating hype from reality

Carbon capture and storage (CCS) technology has been operational for decades, yet the infrastructure required to transport captured CO2 from emission sources to permanent geological storage sites remains one of the most misunderstood elements of the climate technology landscape. Industry advocates project that North America will need 30,000 to 65,000 miles of new CO2 pipelines by 2050 to meet net zero targets, while critics argue the entire endeavor is a fossil fuel industry distraction. The truth, as documented by independent engineering assessments and operational data from existing systems, falls between these extremes and is far more nuanced than either camp acknowledges.

Why It Matters

The Inflation Reduction Act's enhanced 45Q tax credit, which increased the value of permanently stored CO2 to $85 per metric ton and direct air capture storage to $180 per metric ton, has triggered an unprecedented wave of proposed carbon transport and storage projects across North America. The US Department of Energy's Office of Fossil Energy and Carbon Management reported more than 100 proposed CO2 pipeline projects totaling over 18,000 miles as of late 2025, representing estimated capital expenditure exceeding $40 billion.

This infrastructure buildout is not speculative. Existing CO2 pipeline networks in the United States already span approximately 5,300 miles, primarily serving enhanced oil recovery operations in the Permian Basin and Gulf Coast regions. The Denbury network alone operates over 1,300 miles of CO2 pipelines across the Gulf States, transporting roughly 15 million metric tons of CO2 annually. The Alberta Carbon Trunk Line in Canada transports up to 14.6 million metric tons per year across 240 kilometers. These operational systems provide decades of performance data that directly contradicts many commonly held assumptions about feasibility, safety, and cost.

For founders, project developers, and institutional investors, separating verified operational reality from speculative claims is not merely an academic exercise. Misallocated capital in this space could reach tens of billions of dollars within the next five years. Understanding which myths persist and why is essential for sound investment decisions, project design, and policy engagement.

Key Concepts

Supercritical CO2 Transport involves compressing carbon dioxide to pressures above 1,070 psi and temperatures above 31 degrees Celsius, creating a dense, liquid-like phase that flows efficiently through pipelines. Supercritical transport reduces the volume of CO2 by approximately 500 times compared to atmospheric conditions, making pipeline transport economically viable over distances of hundreds of miles. Pipeline operators maintain CO2 in supercritical phase using booster compressor stations spaced every 100 to 200 miles, depending on terrain and throughput requirements.

Geological Storage involves injecting CO2 into deep underground formations, typically at depths exceeding 2,600 feet, where multiple trapping mechanisms prevent migration back to the surface. Structural trapping beneath impermeable caprock provides immediate containment, while dissolution trapping (CO2 dissolving into formation brine), residual trapping (CO2 becoming immobilized in pore spaces), and mineral trapping (CO2 reacting with rock to form stable carbonates) provide progressively more permanent containment over decades to millennia.

Class VI Wells are injection wells specifically permitted by the US Environmental Protection Agency for geologic sequestration of CO2. The permitting process requires extensive geological characterization, computational modeling of CO2 plume behavior, monitoring plans, financial assurance for post-injection site care, and corrective action plans for legacy wells within the area of review. As of early 2026, the EPA had issued approximately 20 Class VI permits, with more than 150 applications pending, representing a significant bottleneck in project development timelines.

CO2 Shipping uses refrigerated, pressurized vessels to transport liquefied CO2 by sea, offering an alternative to pipelines for offshore storage or cross-border transport. Northern Lights, a joint venture between Equinor, Shell, and TotalEnergies in Norway, began commercial operations in 2024 as the world's first open-source CO2 shipping and storage service, with initial capacity of 1.5 million metric tons per year and plans to scale to 5 million metric tons.

CO2 Transport and Storage Infrastructure KPIs: Benchmark Ranges

Metric	Below Average	Average	Above Average	Top Quartile
Pipeline Capital Cost (per mile, onshore)	>$4M	$2.5-4M	$1.5-2.5M	<$1.5M
Storage Cost (per metric ton)	>$25	$15-25	$8-15	<$8
Pipeline Incident Rate (per 1,000 miles/yr)	>0.5	0.3-0.5	0.1-0.3	<0.1
Class VI Permit Timeline	>48 months	36-48 months	24-36 months	<24 months
Storage Capacity Utilization	<40%	40-60%	60-80%	>80%
Injection Well Availability	<85%	85-92%	92-97%	>97%
Monitoring Cost (% of total opex)	>25%	15-25%	8-15%	<8%

What's Working

Hub and Cluster Development Models

The most promising approach to carbon transport infrastructure involves co-locating multiple industrial emitters around shared pipeline corridors and storage complexes. The Houston CCS Innovation Zone, anchored by ExxonMobil's proposed hub capable of storing 100 million metric tons per year by 2040, demonstrates how shared infrastructure reduces per-emitter costs by 40 to 60 percent compared to point-to-point systems. The Midwest Carbon Express, proposed by Summit Carbon Solutions, would connect over 30 ethanol facilities across five states through a 2,500-mile pipeline network, aggregating emissions from sources that individually could not justify dedicated infrastructure.

Proven Geological Storage Performance

The Sleipner project in Norway has injected over 20 million metric tons of CO2 into the Utsira saline formation since 1996, providing nearly three decades of monitoring data confirming stable geological containment with no detectable leakage. The Quest project in Alberta, operated by Shell, has stored over 8 million metric tons since 2015 with 99.99 percent containment verified through comprehensive monitoring. The Illinois Industrial Carbon Capture and Storage project at Archer Daniels Midland's Decatur facility has demonstrated safe storage of over 3 million metric tons in the Mount Simon Sandstone, with extensive subsurface monitoring confirming containment integrity.

Maritime CO2 Transport

Northern Lights achieved a major milestone by completing its first commercial CO2 cargo delivery in 2024, transporting captured emissions from Heidelberg Materials' cement plant in Brevik, Norway, to subsea storage. This project validated the technical feasibility of shipping CO2 at scale and created a replicable commercial framework where emitters without access to local storage geology can access permanent sequestration services across borders. Several additional projects are now in development across the North Sea and Baltic regions based on this model.

What's Not Working

Permitting Bottlenecks

The EPA's Class VI permitting process remains the most significant constraint on US carbon storage deployment. Average permitting timelines have exceeded 36 to 48 months, with some applications pending for over five years. The agency has struggled with staffing constraints relative to the volume of applications, leading to calls for primacy delegation to state agencies. Only North Dakota, Wyoming, and Louisiana had received primacy authority by early 2026, leaving most proposed projects dependent on federal review.

Pipeline Routing and Community Opposition

Several high-profile pipeline projects have faced significant public opposition, delaying or derailing development timelines. The Navigator Heartland Greenway project, which would have connected 20 ethanol and fertilizer plants across five Midwest states via 1,300 miles of pipeline, was cancelled in late 2023 after failing to secure regulatory approvals in South Dakota and Iowa amid landowner opposition. Summit Carbon Solutions' Midwest Carbon Express has faced similar challenges, requiring repeated regulatory filings and route modifications across multiple states. Community concerns center on safety risks from potential pipeline ruptures, eminent domain disputes, and the perceived benefit accruing primarily to corporate emitters rather than local communities.

Cost Escalation in Early Projects

Initial project cost estimates have frequently proven optimistic. Construction costs for CO2 pipelines have escalated 25 to 40 percent above original projections due to labor shortages, steel price volatility, and the specialized welding and materials requirements for CO2 service. Engineering studies published by the National Energy Technology Laboratory indicate that total transport and storage costs for a typical Midwest ethanol capture project range from $25 to $45 per metric ton, consuming a significant portion of the $85 per ton 45Q credit and leaving thin margins for project economics.

Myths vs. Reality

Myth 1: CO2 pipelines are fundamentally more dangerous than natural gas pipelines

Reality: Data from the Pipeline and Hazardous Materials Safety Administration (PHMSA) shows that CO2 pipelines have had a lower incident rate than natural gas pipelines on a per-mile basis over the past 20 years. Between 2004 and 2024, CO2 pipelines averaged 0.27 incidents per 1,000 miles per year, compared to 0.56 for natural gas transmission pipelines. However, CO2 pipeline failures pose unique risks because CO2 is denser than air and can accumulate in low-lying areas, as demonstrated by the 2020 Satartia, Mississippi rupture that temporarily displaced approximately 200 residents. This incident, while not causing fatalities, highlighted the need for improved detection systems and emergency response protocols specific to CO2 transport.

Myth 2: Geological storage is experimental and unproven

Reality: CO2 geological storage has been practiced commercially since 1972, when the SACROC unit in Texas began CO2 injection for enhanced oil recovery. Dedicated storage (without oil recovery) has been operational since 1996 at Sleipner. Multiple peer-reviewed studies, including comprehensive reviews published by the Intergovernmental Panel on Climate Change, confirm that properly characterized and managed geological storage can retain CO2 with greater than 99 percent probability over 10,000 years. The technology is not experimental; the challenge is deploying it at the scale and speed required for climate impact.

Myth 3: CCS infrastructure is just a lifeline for fossil fuel companies

Reality: While early CCS projects were predominantly associated with enhanced oil recovery and fossil fuel production, the current wave of proposed projects reflects a broader industrial base. The largest category of proposed capture projects in the US by volume involves ethanol production, cement manufacturing, steel production, and hydrogen generation. These industrial processes produce CO2 emissions that cannot be eliminated through electrification or fuel switching. The International Energy Agency estimates that CCS is required for approximately 15 percent of cumulative emissions reductions needed to reach net zero by 2050, concentrated in hard-to-abate industrial sectors.

Myth 4: We already have enough pipeline capacity for CCS at scale

Reality: The existing 5,300 miles of US CO2 pipelines serve enhanced oil recovery operations and have limited spare capacity for new storage projects. Princeton University's Net-Zero America study estimated that achieving economy-wide decarbonization would require building between 30,000 and 65,000 miles of new CO2 pipelines, representing capital investment of $80 to $230 billion. Even under moderate scenarios, this represents an infrastructure buildout comparable in scale to the US natural gas pipeline expansion of the 1950s and 1960s.

Key Players

Established Leaders

ExxonMobil is developing the Houston CCS hub with plans to capture and store 50 to 100 million metric tons per year by 2040, positioning itself as a transport and storage service provider for third-party emitters along the Gulf Coast.

Denbury (acquired by ExxonMobil in 2023) operates the largest dedicated CO2 pipeline network in the US at over 1,300 miles, providing critical existing infrastructure for Gulf Coast storage operations.

Equinor, through the Northern Lights joint venture with Shell and TotalEnergies, operates the world's first commercial cross-border CO2 shipping and storage service from its subsea facilities offshore Norway.

Emerging Players

Summit Carbon Solutions is developing the Midwest Carbon Express, the largest proposed CO2 pipeline network in the world at approximately 2,500 miles, connecting ethanol producers across five states to storage in North Dakota.

Tallgrass Energy is converting a portion of its existing Rockies Express natural gas pipeline to CO2 service, demonstrating a potentially lower-cost pathway for transport infrastructure by repurposing existing pipeline corridors.

Carbonvert focuses on providing geological storage as a service, developing permitted storage sites in the Gulf Coast and offering injection and long-term monitoring services to capture project developers who lack subsurface expertise.

Key Investors and Funders

US Department of Energy has committed over $12 billion through the Bipartisan Infrastructure Law for CCS demonstration, regional direct air capture hubs, and carbon storage validation, representing the largest government investment in CCS infrastructure globally.

Brookfield Asset Management and other infrastructure-focused private equity firms have made significant commitments to CO2 pipeline and storage assets, treating them as regulated infrastructure with long-duration cash flows.

The 45Q Tax Credit provides $85 per metric ton for dedicated geological storage and $60 per ton for enhanced oil recovery, creating the primary economic driver for private investment in transport and storage infrastructure.

Action Checklist

• Assess proximity to proposed CO2 pipeline corridors and storage hubs to evaluate connectivity options for industrial facilities
• Engage with EPA or state primacy agencies early on Class VI permitting requirements to understand timeline expectations
• Evaluate hub-and-cluster participation opportunities to share infrastructure costs with co-located emitters
• Conduct detailed geological site characterization before committing to storage location, including legacy well assessments
• Develop community engagement strategies that address safety concerns and articulate local economic benefits
• Model project economics with 25 to 40 percent cost contingency above initial engineering estimates
• Investigate pipeline conversion opportunities using existing natural gas or oil pipeline corridors
• Secure 45Q tax credit eligibility through early engagement with IRS guidance on qualification requirements

FAQ

Q: How much does it cost to build CO2 pipeline infrastructure? A: Onshore CO2 pipeline construction in North America costs approximately $2 to $4 million per mile for typical diameters of 8 to 16 inches, with larger trunk lines exceeding $5 million per mile. Costs vary significantly based on terrain, population density, and right-of-way acquisition challenges. Offshore pipelines cost two to four times more than onshore equivalents. Total transport and storage costs, including compression, pipeline operation, injection, and monitoring, typically range from $15 to $45 per metric ton depending on distance, volume, and geology.

Q: How long does it take to develop a CO2 storage project from concept to injection? A: From initial site characterization to first injection, typical timelines span five to eight years. This includes two to three years for geological assessment and well drilling, two to four years for Class VI permitting, and one to two years for facility construction and commissioning. Projects in states with primacy authority (North Dakota, Wyoming, Louisiana) may achieve somewhat shorter timelines due to more responsive permitting processes.

Q: What happens if CO2 leaks from a storage formation? A: Comprehensive monitoring programs detect CO2 migration before it reaches the surface. Monitoring technologies include downhole pressure and temperature sensors, seismic surveys to track plume movement, groundwater sampling, soil gas surveys, and surface atmospheric monitoring. If migration is detected, operators can adjust injection rates, modify well configurations, or implement remedial actions. Data from over 50 years of CO2 injection operations worldwide shows that properly characterized and managed formations retain CO2 with extremely high reliability.

Q: Can existing natural gas pipelines be converted to carry CO2? A: In some cases, yes. Several operators are evaluating conversion of underutilized natural gas pipelines to CO2 service. Key considerations include material compatibility (CO2 with moisture creates carbonic acid that corrodes carbon steel), pressure rating compatibility, routing alignment with capture sources and storage sites, and regulatory reclassification requirements. Tallgrass Energy's planned conversion of portions of the Rockies Express pipeline represents the highest-profile test case. Conversion can reduce capital costs by 50 to 70 percent compared to new construction where alignment and material conditions are favorable.

Q: Is CO2 shipping a viable alternative to pipelines? A: CO2 shipping is commercially operational through the Northern Lights project and is technically proven for distances where pipeline construction is impractical, such as across bodies of water or between countries. Shipping becomes cost-competitive with pipelines at distances exceeding approximately 500 to 800 kilometers, particularly for smaller volumes below 2 million metric tons per year. Liquefied CO2 carriers operate at temperatures around minus 26 degrees Celsius and pressures of 15 to 18 bar, using technology adapted from the LPG shipping industry.

Sources

• US Department of Energy, Office of Fossil Energy and Carbon Management. (2025). Carbon Transport and Storage Infrastructure Status Report. Washington, DC: DOE.
• Pipeline and Hazardous Materials Safety Administration. (2025). CO2 Pipeline Safety Incident Data, 2004-2024. Washington, DC: PHMSA.
• Global CCS Institute. (2025). Global Status of CCS 2025. Melbourne: GCCSI.
• International Energy Agency. (2025). CCUS in Clean Energy Transitions. Paris: IEA Publications.
• Princeton University. (2024). Net-Zero America: Potential Pathways, Infrastructure, and Impacts. Princeton, NJ: Andlinger Center for Energy and the Environment.
• National Energy Technology Laboratory. (2025). Cost and Performance Baseline for CO2 Transport and Storage. Pittsburgh, PA: NETL.
• Northern Lights JV. (2025). Annual Report 2024: Commercial Operations and Expansion Plans. Stavanger: Northern Lights.