“It’s one piece of a puzzle in this broad fight against the climate change.” Photo via Getty Images

Power plants and industrial facilities that emit carbon dioxide, the primary driver of global warming, are hopeful that Congress will keep tax credits for capturing the gas and storing it deep underground.

The process, called carbon capture and sequestration, is seen by many as an important way to reduce pollution during a transition to renewable energy.

But it faces criticism from some conservatives, who say it is expensive and unnecessary, and from environmentalists, who say it has consistently failed to capture as much pollution as promised and is simply a way for producers of fossil fuels like oil, gas and coal to continue their use.

Here's a closer look.

How does the process work?

Carbon dioxide is a gas produced by burning of fossil fuels. It traps heat close to the ground when released to the atmosphere, where it persists for hundreds of years and raises global temperatures.

Industries and power plants can install equipment to separate carbon dioxide from other gases before it leaves the smokestack. The carbon then is compressed and shipped — usually through a pipeline — to a location where it’s injected deep underground for long-term storage.

Carbon also can be captured directly from the atmosphere using giant vacuums. Once captured, it is dissolved by chemicals or trapped by solid material.

Lauren Read, a senior vice president at BKV Corp., which built a carbon capture facility in Texas, said the company injects carbon at high pressure, forcing it almost two miles below the surface and into geological formations that can hold it for thousands of years.

The carbon can be stored in deep saline or basalt formations and unmineable coal seams. But about three-fourths of captured carbon dioxide is pumped back into oil fields to build up pressure that helps extract harder-to-reach reserves — meaning it's not stored permanently, according to the International Energy Agency and the U.S. Environmental Protection Agency.

How much carbon dioxide is captured?

The most commonly used technology allows facilities to capture and store around 60% of their carbon dioxide emissions during the production process. Anything above that rate is much more difficult and expensive, according to the IEA.

Some companies have forecast carbon capture rates of 90% or more, “in practice, that has never happened,” said Alexandra Shaykevich, research manager at the Environmental Integrity Project’s Oil & Gas Watch.

That's because it's difficult to capture carbon dioxide from every point where it's emitted, said Grant Hauber, a strategic adviser on energy and financial markets at the Institute for Energy Economics and Financial Analysis.

Environmentalists also cite potential problems keeping it in the ground. For example, last year, agribusiness company Archer-Daniels-Midland discovered a leak about a mile underground at its Illinois carbon capture and storage site, prompting the state legislature this year to ban carbon sequestration above or below the Mahomet Aquifer, an important source of drinking water for about a million people.

Carbon capture can be used to help reduce emissions from hard-to-abate industries like cement and steel, but many environmentalists contend it's less helpful when it extends the use of coal, oil and gas.

A 2021 study also found the carbon capture process emits significant amounts of methane, a potent greenhouse gas that’s shorter-lived than carbon dioxide but traps over 80 times more heat. That happens through leaks when the gas is brought to the surface and transported to plants.

About 45 carbon-capture facilities operated on a commercial scale last year, capturing a combined 50 million metric tons of carbon dioxide — a tiny fraction of the 37.8 gigatonnes of carbon dioxide emissions from the energy sector alone, according to the IEA.

It's an even smaller share of all greenhouse gas emissions, which amounted to 53 gigatonnes for 2023, according to the latest report from the European Commission’s Emissions Database for Global Atmospheric Research.

The Institute for Energy Economics and Financial Analysis says one of the world's largest carbon capture utilization and storage projects, ExxonMobil’s Shute Creek facility in Wyoming, captures only about half its carbon dioxide, and most of that is sold to oil and gas companies to pump back into oil fields.

Future of US tax credits is unclear

Even so, carbon capture is an important tool to reduce carbon dioxide emissions, particularly in heavy industries, said Sangeet Nepal, a technology specialist at the Carbon Capture Coalition.

“It’s not a substitution for renewables ... it’s just a complementary technology,” Nepal said. “It’s one piece of a puzzle in this broad fight against the climate change.”

Experts say many projects, including proposed ammonia and hydrogen plants on the U.S. Gulf Coast, likely won't be built without the tax credits, which Carbon Capture Coalition Executive Director Jessie Stolark says already have driven significant investment and are crucial U.S. global competitiveness.

Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub. Photo via 1pointfive.com

Oxy, Enterprise Products Partners to collaborate on carbon dioxide pipeline system for Texas project

coming soon

Occidental Petroleum’s carbon capture, utilization, and sequestration (CCUS) subsidiary has tapped another Houston-based company to develop a carbon dioxide pipeline and transportation network for one of its CCUS hubs.

Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub, which will span more than 55,000 acres in Chambers, Liberty, and Jefferson counties. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide. The new pipeline network will be co-located with existing pipelines.

Enterprise Products Partners also will supply fee-based services for transporting CO2 emissions from industrial facilities near the Houston Ship Channel to the Bluebonnet hub.

“This agreement pairs our expertise managing large volumes of CO2 with Enterprise’s decades of midstream experience to bring confidence to industrial customers seeking a decarbonization solution,” Jeff Alvarez, president of 1PointFive’s sequestration business, says in a news release.

The Bluebonnet Sequestration Hub recently received funding from the U.S. Department of Energy (DOE) to help cover development costs.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” Alvarez said in 2023. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

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Electric truck charging network expands to Houston-Dallas freight corridor

electric trucking

Greenlane Infrastructure, an electric public charging station developer and operator, is expanding outside of its home state of California and into Texas.

The Santa Monica-based company plans to launch its high-power charging sites along the Dallas–Houston I-45 corridor, which is one of the highest-volume commercial trucking routes in the country, according to a news release from Greenlane.

The sites will feature 6-8 pull-through lanes with chargers supporting combined charging system (CCS) and megawatt charging system (MCS) connectors that allow electric truck drivers to recharge their vehicles during standard rest periods. They will also offer tractor parking and charging, as well as operations that will allow for overnight stops.

Drivers can reserve chargers in advance, monitor charging activity in real time, and manage billing from the Greenlane Edge platform.

“Our customers are making commitments to electrify their fleets, and they need a charging network that can grow alongside them,” Patrick Macdonald-King, CEO of Greenlane, said in the release. “This is the first leg of the Texas triangle, one of the more important freight arteries in the country, so bringing high-power charging there is the next logical step in building a network that serves how freight moves across America.”

Greenlane is also expanding across the West Coast, with five locations under development in California and Nevada. It opened its flagship Greenlane Center in Colton, California, in April 2025. The company plans to open locations in Blythe, California, and Port of Long Beach this year.

Greelane was founded in 2023 as a joint venture between Daimler Truck North America, NextEra Energy Resources and BlackRock. It has secured partnerships with electric long-haul truck developer Windrose Technology, Velocity Truck Centers and Volvo Trucks North America.

Houston startup lands $1B from Blackstone and Halliburton, plans acquisition

power deal

Houston-based power generation startup VoltaGrid has nailed down a $1 billion equity investment from asset management heavyweight Blackstone and Houston-based oilfield services provider Halliburton.

The investment comes in two forms:

  • A $775 million primary capital raise
  • A $225 million secondary capital purchase from existing investors

VoltaGrid, founded in 2020, provides behind-the-meter mobile power generation equipment for data centers, microgrids and industrial customers.

Aside from the $1 billion investment, VoltaGrid has agreed to buy Propell Energy Technology, a VoltaGrid supplier, for an undisclosed amount. Propell offers a natural gas power generation platform for AI data centers. VoltaGrid plans to add two manufacturing plants at Propell’s facilities in Granbury, a Dallas-Fort Worth suburb.

The investment and acquisition deals are expected to close in mid-2026.

Funds managed by Blackstone Tactical Opportunities are contributing to the $1 billion investment. William Nicholson, managing director of Blackstone, called VoltaGrid “a highly differentiated platform addressing one of the most important infrastructure needs of the AI era: reliable, rapidly deployable power. This investment is a strong example of Tac Opps’ focus on providing flexible, scaled capital to exceptional entrepreneurs and businesses operating in Blackstone’s highest-conviction investment themes.”

Nathan Ough, founder and CEO of VoltaGrid, said in a release that the Blackstone investment “is a powerful endorsement of the platform we have built and the role VoltaGrid is playing in delivering the energy infrastructure of the AI era.”

Last October, VoltaGrid and Halliburton said they had forged a partnership to supply power for data centers around the world, with the Middle East picked as the initial target. Two months later, the companies said they had arranged the manufacturing of 400 megawatts of natural gas power systems that’ll be delivered in 2028 to support new data centers in the Eastern Hemisphere.

Jeff Miller, president and CEO of Halliburton, said his company’s investment in VoltaGrid “reflects our shared focus on long-term solutions for the world’s most demanding power environments, and advances VoltaGrid’s ability to deliver reliable, distributed power at scale.”