US Carbon Capture Market Contracts as $3.7B Awards Terminated

The carbon capture and storage (CCS) sector is facing significant challenges and setbacks despite early enthusiasm and substantial investments. Projects like Heidelberg Materials' Brevik in Norway and Schwenk Zement's pilot plants in Lithuania and Latvia are operational, but the technology remains costly and requires substantial renewable energy and logistical support, with political backing still insufficient across the EU. In the United States, the carbon capture market has contracted sharply under President Trump's second term, with the Energy Department canceling $3.7 billion in grants and a 55% drop in permit applications, while major companies like Climeworks and others have reduced staff amid slower growth prospects. Critics argue that the industry is overly dependent on government funding and that the technology struggles with fundamental physical and economic limitations, casting doubt on its viability as a large-scale climate solution. Despite initial hype and investments from high-profile backers such as Bill Gates, Google, and Amazon, the carbon removal market is now experiencing a sharp decline, with many projects failing to meet expectations and facing growing skepticism. This downturn reflects broader political shifts and technological hurdles that have tempered earlier optimism about carbon capture's role in combating climate change.