Carbon Capture, Utilization, and Storage: Carbon Dioxide Transport Costs and Network-Infrastructure Considerations for a Net-Zero United States

Executive Summary

Carbon capture, utilization, and sequestration (CCUS) is a set of technologies that capture carbon dioxide (CO₂) at point source and either store the CO₂ for permanent storage underground or utilize it in the economy such that carbon will not be released back into the atmosphere. Most national and international models indicate that CCUS will be needed, along with a range of other technologies, to economically reach net-zero emissions by 2050 in the United States. The scale of CO₂ capture via CCUS required to achieve net-zero in the United States is 0.9- 1.7 gigatons of CO₂ per year by 2050 in most pathways, according to estimates by Princeton University’s Net-Zero America Project.

This brief examines the national challenges related to deploying and scaling infrastructure to transport CO₂ from capture sites to storage or utilization sites at a scale consistent with achieving net-zero by 2050.

Pipelines will likely continue to be the predominant CO₂ transport mode in the future in the United States. Other modes of transport, such as shipping and trucking, are only economical under specific circumstances and are not as attractive as pipelines for the bulk of CO₂ transport needs under large-scale CCUS deployment.

To reach net-zero by 2050, the CO₂ pipeline network in the United States needs to expand far beyond its current five thousand miles and must evolve from the existing model where pipelines are built mostly to serve individual projects to a network model where projects share infrastructure and thereby exploit economies of scale.

A variety of current models appraise potential CO₂ pipeline networks at local, regional, and national levels. Like other types of models, these CO₂ pipeline models are not prescriptive. Instead, they provide illustrative exercises intended to help analysts and stakeholders understand the physical scale and cost implications of the CO₂ transport infrastructure required for net-zero, given current technology and assumptions on future technology advancement.

Here we compare the assumptions, methodologies, and cost estimates from two different CO₂ pipeline models, developed by the Great Plains Institute and the Net-Zero America Project at Princeton University, which fit the time and geographical boundaries of our research question. We also briefly discuss additional studies that focus on near-term potential for localized networks.

Based on the literature and interviews with policymakers, academics, and business executives, we propose the following policy priorities to support the development of CO₂ pipeline transport:

1. Expanding targeted incentives that address the economic viability of pipeline development, building on the momentum of the expanded 45Q tax credits in the Inflation Reduction Act of 2022.
2. Deepening community engagement to address public sentiment around CO₂ pipelines.
3. Increasing federal-state and state-state collaborations on pipeline expansion planning.
4. Streamlining permitting processes across federal and state lands.