Carbon Capture Is Advancing — But Most Companies Are Misjudging Cost Curves and Regulatory Reality

CEO Strategic Leadership Series

Energy Sector

Carbon capture, utilization, and storage (CCUS) is gaining momentum across Canada and the US as governments introduce tax credits, industrial incentives, and emissions-compliance frameworks. Yet cost curves remain poorly understood, and many CEOs are making strategic decisions based on unrealistic expectations.

CCUS economics vary dramatically by application:
• Post-combustion capture on gas-fired plants
• Solvent-based capture at industrial facilities
• Direct air capture
• Geological sequestration
• Utilization in fuels, materials, and chemicals

Most companies underestimate the full cost stack: capture equipment, compression, transport, storage, monitoring, and long-term liability. They also underestimate permitting timelines, pipeline constraints, and public acceptance challenges.

CCUS will play a role in North American decarbonization — but only for companies that understand realistic cost curves and regulatory pathways.

A CCUS strategy must integrate:
• Site-by-site cost feasibility
• Policy incentives (45Q, ITC, PTC, Canadian CCS ITC)
• Infrastructure availability
• Offtake opportunities
• Risk and liability structures
• Long-term demand and carbon-price scenarios

Companies that rely on CCUS without understanding these constraints will face stranded capital and compliance failures.

How Arcus Can Help

Arcus builds CCUS feasibility models, evaluates technology pathways, designs incentive-optimized deployment strategies, and guides firms through regulatory and infrastructure challenges.

Next step: Engage Arcus for a Carbon Capture Viability Assessment tailored to your industrial portfolio.

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