As the global push for cleaner energy intensifies, a major opportunity is emerging in the form of carbon capture technology. Industries like power generation, cement production, and steel manufacturing—pillars of the global economy—are also some of the largest carbon dioxide (CO₂) emitters. This puts them at the center of growing regulatory and market pressures to reduce emissions. Thus, carbon capture offers a lifeline to industries that can’t easily transition to renewables.
By capturing CO₂ before it enters the atmosphere and either storing it or converting it into useful products, companies can continue operating in high-demand sectors while meeting regulatory targets. For investors, the carbon capture stocks offer a nuanced bet on clean energy—it’s a bet on slower-than-expected adoption of renewables, while faster-than-expected tightening of climate policies. And while that sounds less flashy than the latest in solar or nuclear technology, it might very well be the most plausible scenario. In this guide, we’ll explore the top carbon capture stocks, ranked by pure-play focus.
Note: We make every effort to keep our information accurate and up-to-date. However, technology markets do move fast and company situations can change rapidly. Please use this guide as an introduction to the carbon capture landscape; but ultimately, do your own due diligence before taking action.
How Carbon Capture Works
Carbon capture technology encompasses several processes that “trap” CO₂ emissions at their source. This often occurs at power plants or industrial facilities where fossil fuels like coal, oil, or natural gas are burned. The captured CO₂ is then compressed and transported through pipelines to either be stored deep underground or repurposed for industrial use.
Carbon Capture and Storage (CCS): In CCS, the CO₂ is injected deep underground, into depleted oil and gas reservoirs or saline aquifers, where it can be stored for thousands of years. CCS has been used in some form since the 1970s, primarily in enhanced oil recovery, but now it is being adapted purely for emissions reduction. The U.S. facility at Petra Nova and Norway’s Sleipner Field are prominent examples of CCS projects.
Carbon Capture and Utilization (CCU): Instead of storing the captured CO₂, it can be reused in industrial applications, such as in the production of synthetic fuels, chemicals, or concrete. CCU is still nascent, but offers the enticing possibility of turning waste CO₂ into valuable products, creating a circular economy for carbon.
The main techniques for capturing CO₂ are:
- Pre-combustion capture: This method separates CO₂ before the fossil fuel is burned, by first converting the fuel into a gas mixture that includes hydrogen and CO₂. The CO₂ is then captured, and the hydrogen is used to generate energy. Pre-combustion capture is commonly used in hydrogen production and natural gas processing.
- Post-combustion capture: In this process, CO₂ is captured from the exhaust gas produced after burning fossil fuels. The gas passes through chemicals, such as amines, that bind with the CO₂, separating it from other emissions. This method can be retrofitted to existing power plants, making it one of the more practical short-term options for emissions reduction.
- Oxy-fuel combustion: In this approach, fossil fuels are burned in pure oxygen instead of air. This results in a flue gas composed mostly of water vapor and CO₂, making it easier to capture the CO₂. Oxy-fuel combustion is still in the experimental phase, but it has the potential for high capture rates.
Growth Drivers of Carbon Capture Technology
Government regulations are playing a critical role in driving investment in carbon capture technology. In the U.S., the EPA’s new carbon emission standards require power plants to cut emissions by up to 90% by 2038, adding pressure on the energy sector to adopt carbon capture solutions. In Europe, the EU’s Emissions Trading System (EU ETS) has driven carbon prices to over €90 per ton, significantly raising the cost of emitting CO₂. These policies are creating a growing market for carbon capture as industries seek cost-effective ways to comply with increasingly stringent regulations and avoid rising penalties.
To help companies adapt to these policies, governments are also offering financial incentives. For example, in the U.S., the 45Q tax credit provides financial rewards for companies that capture and store CO₂. The credit amounts to $85 per ton of CO₂ permanently stored underground, and $60 per ton if it’s utilized for enhanced oil recovery. Direct air capture (DAC), or extracting CO2 directly from the atmosphere, is even further incentivized—with credits from $130 to $180 per ton.
Challenges Facing Carbon Capture
While regulations are pushing industries to adopt carbon capture, in emerging technologies, carrots are always much better than sticks. And while tax credits are better than nothing, the truth is that right now there aren’t many natural economic incentives driving carbon capture adoptions. Costs have been coming down slowly, but carbon capture will simply not be cost-competitive in the near-term. So without continued and strong government pressures, carbon capture technology will likely struggle to scale on its own.
One key issue is the “energy penalty”—the energy required to capture and compress CO₂ can reduce the efficiency of power plants by up to 20-30%. This means more fuel is needed to generate the same amount of energy, which increases costs. Public perception of carbon capture is mixed. Some see it as a necessary tool for reducing emissions, while others view it as a temporary band-aid that distracts from the transition to renewable energy sources.
Tier 1: Pure-Play Carbon Capture Stocks
Pure-play carbon capture stocks are all-in on carbon capture technologies, making them high-risk but potentially high-reward investments. By specializing in this emerging field, they offer early exposure to what could become a cornerstone technology as climate regulations righten. However, these companies are also heavily dependent on regulatory support and successful technology adoption. They also tend to be much smaller in market cap, and at greater risk of being delisted.
NET Power Inc. (NYSE: NPWR)
NET Power (NPWR) integrates near-complete CO₂ capture into efficient natural gas power generation.
NET Power Inc. has developed the Allam-Fetvedt Cycle, an impressive technology that generates electricity from natural gas while inherently capturing carbon dioxide emissions. Unlike conventional power plants, NET Power’s system combusts natural gas with pure oxygen, producing a high-pressure CO₂ stream that drives a turbine to generate electricity. This process eliminates the need for separate carbon capture equipment, making it a more efficient and cost-effective solution.
The CO₂ produced is not released into the atmosphere; instead, it is captured in a form ready for storage or industrial use. This closed-loop system achieves near-zero atmospheric emissions, including other pollutants like nitrogen oxides. It offers the efficiency of a combined-cycle power plant but with the environmental benefits of carbon capture built into the process.
NET Power has successfully demonstrated its technology at a test facility in La Porte, Texas, proving its commercial viability. By integrating carbon capture into the fundamental design of power generation, NET Power provides a practical pathway for the energy industry to reduce emissions without abandoning existing fuel resources.
Aker Carbon Capture ASA (OTC: AKCCF)
Aker Carbon Capture (AKCCF) provides cost-effective, modular carbon capture solutions for European industries.
Note that Aker is undergoing a joint-venture with SLB to form SLB Capturi.
Aker Carbon Capture ASA is a Norwegian company specializing in carbon capture, leveraging its rich heritage from the Aker Group’s experience in offshore engineering. The company has developed a proprietary “Just Catch” modular carbon capture plant. This flexible and scalable plant is designed to be a cost-effective option for mid-sized companies in industries like cement, biomass, and waste-to-energy. It aims to reduce the time and expense typically associated with custom-built carbon capture facilities.
A key innovation from Aker is its advanced amine solvent, which efficiently captures CO₂ from flue gasses while minimizing energy consumption and environmental impact. This solvent has been tested extensively, showing high stability and low degradation rates, which translates to lower operational costs and less waste. The technology has been successfully deployed in real-world projects like the CO₂ capture pilot at the Norcem cement plant in Brevik, Norway.
LanzaTech Global, Inc. (NASDAQ: LNZA)
LanzaTech (LNZA) transforms captured CO₂ into valuable chemicals and fuels through gas fermentation.
LanzaTech Global, Inc. has pioneered a novel approach to carbon capture by transforming industrial emissions into valuable fuels and chemicals through biotechnology. Utilizing proprietary microbes in a process called gas fermentation, LanzaTech converts waste gasses rich in carbon monoxide and carbon dioxide into ethanol and other chemicals. This not only reduces greenhouse gas emissions but also creates a sustainable supply chain for products traditionally derived from fossil resources.
The company’s innovation lies in engineering microbes that can thrive in industrial gas streams, turning pollutants into feedstock. Their bioreactors can be integrated directly into industrial facilities like steel mills and refineries, capturing emissions at the source. The ethanol produced can serve as a building block for a variety of products, including jet fuel, plastics, and synthetic fibers, effectively creating a circular carbon economy.
LanzaTech has commercialized its technology with operational plants in China and partnerships worldwide, including collaborations with major airlines and consumer goods companies. By turning waste into real-world products, LanzaTech aims to prove that carbon capture can be both environmentally beneficial and economically viable.
Carbon Streaming Corporation (OTC: OFSTF)
Carbon Streaming (OFSTF) funds carbon capture projects in exchange for future carbon credits.
Carbon Streaming Corporation offers a creative financial model to accelerate the adoption of carbon capture projects globally. Rather than developing technologies themselves, they provide upfront capital to project developers in exchange for a share of future carbon credits generated. This “streaming” model mirrors practices in the mining industry and helps overcome the significant funding barriers that many carbon capture initiatives face.
Their portfolio spans a diverse range of projects, including reforestation, soil carbon sequestration, and technological carbon removal solutions. By investing in these projects early, Carbon Streaming Corporation secures access to carbon credits at a lower cost, which can then be sold to companies seeking to offset their emissions.
Carbon Streaming Corporation aims to bridge the gap between capital markets and environmental projects. Their approach not only supports the expansion of carbon capture projects but also provides investors with exposure to the growing carbon credit market.
Tier 2: Diversified Carbon Capture Stocks
Diversified carbon capture stocks involve companies that see carbon capture as a significant growth area, but not their sole focus. These businesses tend to be established players in industries like energy, where they can leverage existing infrastructure and expertise to integrate carbon capture. While they may not be fully dependent on carbon capture for revenue, their investment in the technology positions them to benefit as it scales. For investors, this offers a safer, more balanced approach—exposure to carbon capture without the risk of betting on a single technology or regulatory outcome.
Occidental Petroleum Corporation (NYSE: OXY)
Occidental Petroleum (OXY) integrates direct air capture with enhanced oil recovery for profitable carbon removal.
Occidental Petroleum is traditionally known as one of the largest oil and gas producers in the United States, with significant operations in the Permian Basin. Recognizing the shifting energy landscape, the company has pivoted to become a leader in carbon capture initiatives. Occidental is actively investing in Direct Air Capture (DAC) technology, aiming to remove CO₂ directly from the atmosphere. In partnership with Carbon Engineering, they are constructing what is expected to be the world’s largest DAC facility in Texas. This move not only aligns with global emission reduction goals but also positions Occidental at the forefront of carbon management solutions.
What sets Occidental apart is its plan to integrate captured CO₂ into enhanced oil recovery (EOR) processes. By injecting the captured carbon into aging oil fields, they can extract additional oil while effectively sequestering the CO₂ underground. This creates a closed-loop system that both boosts oil production and reduces atmospheric carbon. Their approach combines existing expertise in oil extraction with innovative carbon capture methods, offering a pragmatic pathway toward lower net emissions without abandoning their core business operations.
Air Products and Chemicals, Inc. (NYSE: APD)
Air Products and Chemicals, Inc. (NYSE: APD) dominates in blue hydrogen with large-scale CCS projects linked to hydrogen production.
Air Products and Chemicals, Inc. is a U.S.-based multinational corporation specializing in selling gasses and chemicals for industrial uses. The company is a leading supplier of hydrogen and has a strong focus on developing technologies that contribute to cleaner energy solutions. In terms of carbon capture, Air Products has successfully integrated CO₂ capture systems into its existing hydrogen production facilities.
A notable project is the Port Arthur Carbon Capture facility in Texas. Air Products retrofitted two of its steam methane reformers to capture approximately one million tons of CO₂ annually during hydrogen production. The captured CO₂ is then compressed and transported via pipeline for use in enhanced oil recovery operations in nearby oil fields. This project was one of the first large-scale carbon capture initiatives supported by the U.S. Department of Energy and serves as a model for how existing industrial processes can be adapted to reduce emissions.
Linde plc (NYSE: LIN)
Linde plc (NYSE: LIN) focuses on CO₂ utilization and leads in blue hydrogen by integrating carbon capture with gas processing.
Linde plc is a global leader in industrial gasses and engineering, formed from the merger of Germany’s Linde AG and the U.S.-based Praxair. The company supplies gasses like oxygen, nitrogen, and hydrogen to a variety of industries, including healthcare, manufacturing, and energy. In carbon capture, one of Linde’s focus areas is oxy-fuel combustion, a process that burns fuel in pure oxygen instead of air, resulting in a flue gas that is predominantly CO₂ and water vapor. This makes the CO₂ easier to separate and capture.
Linde collaborates on projects that combine hydrogen production with carbon capture. By capturing CO₂ emitted during hydrogen generation through steam methane reforming, Linde supports the production of “blue hydrogen,” which has a lower carbon footprint. Linde’s comprehensive approach, combining advanced gas technologies with engineering solutions, positions it as a significant player in providing practical and scalable carbon capture options for various industries.
Tier 3: Companies with Major Carbon Capture Efforts
Companies in this tier are large, diversified firms that include carbon capture projects as part of their broader sustainability plans. These companies are often leaders in sectors like energy or industrial gas and use carbon capture as one piece of a bigger strategy. For these companies, carbon capture mainly serves as a hedge against future emissions regulations.
Equinor ASA (NYSE: EQNR)
Equinor (EQNR) leads in large-scale CCS with decades of experience and the Northern Lights project.
Equinor, formerly known as Statoil, is a Norwegian energy company with deep roots in offshore oil and gas exploration. In recent years, Equinor has diversified its portfolio to include renewable energy sources like wind power. In the realm of carbon capture, Equinor is a key player in the Northern Lights project, a pioneering endeavor in Norway that aims to develop a full-scale carbon capture and storage (CCS) value chain. This project involves capturing CO₂ from industrial sources, transporting it via ships, and storing it securely beneath the North Sea seabed.
Equinor’s advantage lies in its collaborative model and infrastructural expertise. By partnering with other industry giants like Shell and TotalEnergies, Equinor is leveraging collective knowledge to tackle the complexities of CCS. The Northern Lights project is particularly noteworthy because it offers open-source infrastructure for CO₂ storage, meaning other companies can utilize the storage facilities. This could accelerate the adoption of CCS technology across Europe, making Equinor not just a participant but a facilitator in the carbon capture arena.
Mitsubishi Heavy Industries, Ltd. (TYO: 7011)
Mitsubishi Heavy Industries (TYO: 7011) offers proven, large-scale carbon capture solutions with full integration from capture to storage.
Mitsubishi Heavy Industries (MHI) is a Japanese conglomerate renowned for its engineering and manufacturing expertise across sectors like energy, aerospace, and industrial machinery. In the carbon capture arena, MHI has distinguished itself with its “KM CDR Process,” a technology developed in collaboration with Kansai Electric Power Company. This process uses a proprietary solvent called KS-1 to capture CO₂ from flue gas emitted by power plants and industrial facilities. The KS-1 solvent is notable for its high efficiency and lower energy requirements compared to traditional amine-based solvents, making the carbon capture process more cost-effective.
MHI’s technology has been implemented in several large-scale projects worldwide. A prominent example is the Petra Nova project in Texas, which, upon its launch, was the world’s largest post-combustion carbon capture facility. Using MHI’s KM CDR Process, the facility was designed to capture approximately 1.4 million tons of CO₂ annually from a coal-fired power plant. The captured CO₂ was then utilized for enhanced oil recovery in nearby oil fields. Although the project faced operational challenges and was suspended in 2020 due to low oil prices, it was later re-opened in 2023.
Fluor Corporation (NYSE: FLR)
Fluor Corporation (NYSE: FLR) excels in retrofitting industrial plants with cost-effective carbon capture technology.
Fluor Corporation is a Texas-based global engineering and construction firm known for executing large and complex projects in energy, chemicals, and infrastructure. In the field of carbon capture, Fluor has developed the “Econamine FG Plus” (EFG+) technology, an advanced solvent-based process for post-combustion CO₂ capture. The EFG+ technology uses a proprietary amine solvent that is specifically formulated to handle the low CO₂ concentrations found in flue gas from natural gas-fired power plants and industrial boilers. This technology is recognized for its reduced energy consumption and lower solvent degradation rates, which translate to lower operational costs.
Fluor’s EFG+ technology has been deployed in several significant projects. Notably, it was also selected for the carbon capture system at the Petra Nova facility in Texas, where Fluor provided engineering, procurement, and construction services. The system was designed to capture 90% of the CO₂ from a 240-megawatt equivalent slipstream of flue gas. Fluor’s extensive experience in large-scale project management and its proven carbon capture solutions make it a significant contributor to reducing emissions from existing power plants and industrial sources.
