CCS leads way for global green energy investment, finds major new survey

More than 90% of organisations surveyed said they had invested in either carbon capture or carbon storage solutions in the last year, with 78% planning to do so again within the next 12 months.

The findings come as part of a major new survey into global green energy investment trends, conducted by Pinsent Masons and Censuswide, which found that investment funds and developers both small and large continue to keep their focus on CCS opportunities.

Stacey Collins, an energy technology expert with Pinsent Masons, said the results highlighted how much CCS had become a vital part of the energy transition process.

“The data strongly reflects what we are seeing globally on live projects,” he explained.

“Carbon capture and storage is now being treated as essential enabling infrastructure for the energy transition, particularly in hard‑to‑abate sectors where electrification alone will not deliver the required emissions reductions.

“The key shift is that the market is no longer debating whether CCS has a role, but how it can be delivered at scale in a way that is technically, commercially and legally bankable.”

In some regions, investment levels are particularly strong, with more than 98% of UK investors and developers backing the technology. Across Europe investment levels in CCS remain high, with France, the Netherlands and Germany all showing more than 90% support from investors – and only Spain, where 78% of respondents said they had or were investing in CCS, bucking the trend.

Among major oil producing countries, investors in Saudi Arabia (93%) and the USA (90%) showed the greatest support, while more than 80% of investors in Qatar and the UAE had backed or were planning to back CCS projects.

The study draws on responses from almost 1000 active VC investors and technology developers around the world, to highlight current and future trends for investment, technological growth and regulatory conditions.

Outside of carbon capture technologies, the survey found that small scale nuclear projects were gaining traction among investors, with more than 30% having invested or looking to invest in projects such as small modular reactors during the timeframe.

Investment in other low-carbon technologies proved to be varied, with 11% of those surveyed having invested in solar and just under 9% in wind – although, notably, the strongest support for investment in those sectors came from Asia and South Africa, with 25% of South African respondents having invested in, or planning to invest, in solar projects, and more than a third of Qatar-based replies having backed wind projects.

Laura Ayre, a supply chain expert with Pinsent Masons, said the findings highlighted how carbon capture and storage had been able to gain an advantage through familiarity over other renewable investment projects.

“What the data reflects is that CCS is increasingly being seen as a low-carbon technology of choice, when it comes to global investment opportunities,” she explained.

“Developers and investors have been building up repeatable contracting and procurement models for CCS over recent years. That institutional knowledge is not easily replicated, and it is one of the reasons the technology continues to attract capital even as other options open up.”

With increasing opportunities for different carbon emitters to access carbon capture solutions, the survey highlights how investment in carbon capture projects that can generate carbon-credits has become a global strategic focus. If structured correctly, such carbon-credit generation can create a reliable income stream to accelerate the pathway to financial returns. This is a reason why that data shows that carbon capture projects which can create carbon-credits are the preferred option currently for both new, smaller funds and established entrants to the market.

“The strong interest from early-stage companies in CCS is particularly interesting,” said Ayre.

“It suggests that CCS is not simply a vehicle for large incumbents - new entrants see a genuine commercial opportunity. This is exciting but it will be important for first-time entrants into this space to ensure they don’t underestimate how much early legal and commercial structuring matters, when it comes to ensuring your CCS project is robust and set up to be investable from the outset.”