Carbon capture and storage (CCS): How it works and why it matters
As the world grapples with the urgent need to reduce greenhouse gas emissions, carbon capture and storage (CCS) has emerged as one of the critical decarbonisation pathways on the journey towards net zero.
In its Global Energy Perspective 2024, McKinsey projected that low-carbon energy sources would grow from 32% of global power generation mix today, to 65%-80% by 2050.1 But while renewable energy, electrification and other technologies are making strides in reducing emissions, they are harder to apply in sectors where operations are energy-intensive and rely heavily on industrial processes, often resulting in process emissions.
For hard-to-abate sectors including cement, waste, fertiliser production, power, chemicals and steel, CCS offers an important solution to help reduce emissions.
While the technology itself shouldn’t be seen as a standalone solution, it can play a key role within broader net-zero strategies – helping businesses transition to cleaner operations while remaining economically competitive. For example, lower-carbon hydrogen is produced from natural gas through a process called steam methane reforming – whereby the CO2 emissions are captured and stored using CCS technology, making it a lower-carbon hydrogen option.2
Given its vast potential, how does CCS technology work, and how can governments and customers drive further adoption?
How does CCS technology work?
CCS typically follows a four-step process: capture, transport, storage and measuring, monitoring and verification:
Capture
The first stage involves separating CO₂ from other gases produced during industrial processes or fossil-fuel combustion in power plants. There are three primary methods3 to capture carbon: post-combustion, which extracts CO₂ from flue gases after fuel combustion using chemical solvents or adsorption techniques; pre-combustion, which removes CO₂ from fuel before combustion, typically in gasification processes; and oxy-fuel combustion, which uses oxygen instead of air for combustion, producing a flue gas primarily composed of CO₂ and water – simplifying CO₂ capture. Once captured, the CO₂ is then compressed into a liquid state and transported to storage sites.
Transport
Transport can happen in a number of ways. Pipelines are a common method for moving large volumes of CO₂ – particularly for industrial clusters of interconnected companies and suppliers, which enables them to reap decarbonisation benefits. Ships can be used to transport cross-border liquid CO₂, particularly when storage sites are located offshore, making CCS technology viable even in hard-to-reach locations.
Storage
Once the captured CO2 arrives at the storage site, the final step involves injecting the captured CO₂ into the microscopic spaces in porous rocks, where one or more layers of impermeable rock, called cap rock, forms a seal to ensure it is securely trapped, offering permanent storage.
Measuring, monitoring and verification
Regular monitoring, both above and below ground, is implemented to ensure that the CO2 remains permanently and safely stored.
While CCS primarily focuses on capturing CO₂ from industrial facilities and power plants, Direct Air Capture (DAC) is an emerging technology that removes CO₂ directly from the atmosphere. DAC uses chemical processes to extract CO₂ from ambient air – making it particularly useful for addressing legacy emissions and carbon removal, which is why it is sometimes referred to as ‘negative emissions technology (NET)’.4 The CO₂ captured through DAC is either permanently stored underground or utilised in industrial applications, such as the production of synthetic fuels.
As DAC technology advances and becomes more cost-effective, it is expected to play an increasing role alongside CCS in emissions reduction strategies.5
Driving CCS adoption through policies and demand
Despite its potential, CCS faces economic and regulatory hurdles. Government support is essential to create a conducive environment for investment and deployment of the technology – including through policy frameworks, financial incentives, and infrastructure development across the full value chain.
For example, carbon pricing mechanisms such as carbon taxes or cap-and-trade systems – which set a tax rate on greenhouse gas emissions or the carbon content of fossil fuels and allow companies to trade emission allowances to meet compliance targets – can make CCS more economically viable6. Emissions reduction mandates to reduce carbon footprint across certain industries can incentivise adoption, while streamlined permitting and legal frameworks can accelerate the approval process for CCS projects.
Elsewhere, direct subsidies and grants can help to lower upfront project costs, and tax credits and incentives – such as the US’ Section 45Q Tax Credit for Carbon Sequestration which provides financial support – while public-private partnerships can help to share risks and mobilise investment in large-scale projects.7
Ensuring secure and efficient CO₂ sequestration requires strategic storage site development, which can only materialise if appropriate investments in infrastructure and transport networks are made. As such, encouraging industrial clusters whereby multiple companies benefit from shared CCS facilities can have a positive impact, helping to improve efficiency and scalability.
Beyond government support, market-driven demand for CCS can further accelerate adoption. Early adoption of the technology by companies in hard-to-abate industries can give them an edge over competitors in carbon-conscious markets where consumers increasingly prioritise low-carbon products.
Greater CCS demand and deployment can also lead to further improvements around the technology – with knowledge-sharing across sectors helping to accelerate cost-efficiency and commercial viability, for example.
CCS in action
Though CCS is a proven technology, it is not yet widely deployed and available. However, concrete examples of where it has yielded real-world positive impact already exist, with some projects in operation for nearly 20 years. Furthermore, according to the Global CCS Institute, while there are around 50 million tonnes per annum (mpta) of CCS in operation today, there are around 300 mtpa of projects under consideration and many net-zero scenarios show the industry growing to more than 1,000 mtpa by the mid-2030s.8
Quest: How CCS can help decarbonise Shell’s own operations
Northern Lights: Delivering CO₂ transport and storage as a service
Northern Lights is a CCS joint venture between Shell, Equinor and TotalEnergies, to develop the world’s first open-source CO2 transport and storage infrastructure, designed to transport captured CO2 from industrial sites across Europe and permanently and safely store it 2,600 metres below the seabed in the Norwegian North Sea. In 2025, Northern Lights announced plans to expand the transport and storage capacity of the project from 1.5 million to at least 5 million tonnes of CO2 per year.
CCS represents a pivotal asset in the global effort to reduce greenhouse gas emissions, particularly in hard-to-abate industries. As demand for low-carbon solutions continues to grow, businesses can harness the potential the technology holds.
By aligning policy frameworks, financial support and market incentives, CCS can become a cornerstone of global decarbonisation efforts, helping society in the race to net zero by 2050.
Date of publication: August, 2025
CCS comes to life
CCS is increasingly gaining recognition as an important solution for reducing emissions, especially in hard-to-decarbonise sectors, and is something Shell has been working on for decades. And now, the Northern Lights JV has brought the first-ever cross-border, open-source CO2 transport and storage infrastructure network to life.
Take a look at the video below to see how we’re collaborating with customers as well as with government and industry partners to advance CCS.
Read the transcript
Read the transcript
Title: Northern Pathfinder X Northern Pioneer Project
Duration: 2:14 minutes
Description: The Northern Pathfinder and Northern Pioneer animated video showcases Shell and its partners’ groundbreaking liquid CO₂ carrier vessels designed to transport captured carbon for safe underground storage and support progress toward net-zero.
Northern Pathfinder X Northern Pioneer Project Transcript
[Background music plays]
Bright, uplifting music.
[Animated sequence]
3D animation featuring the Northern Pathfinder and Northern Pioneer vessels navigating across a wide-open ocean.
[Text displays]
Northern Pathfinder and Northern Pioneer
World’s first liquid CO2 carriers for large-scale carbon capture and storage.
Voiceover
Northern Pathfinder and Northern Pioneer. The World’s first carriers of liquid dioxide for large-scale carbon capture and storage.
[Text displays]
Lead developer: Shell
Northern Lights Joint Venture DA is a registered, incorporated General Partnership with Shared Liability (DA) owned by Equinor, TotalEnergies and Shell.
Voiceover
Developed by Shell and our partners at Northern Lights to unlock the potential of cross-border CCS.
[Animated Sequence]
A detailed 3D globe rotates slowly in a dark blue, high-tech environment. Thin circular golden lines orbit the earth. Yellow industrial icons that represent facilities across continents surround the rotating globe.
Voiceover
So how does carbon capture and storage work?
[Scene Transition]
The globe spins and begins to zoom inward. The camera dives through the atmosphere, revealing a coastal carbon capture and storage facility.
[Animated Sequence]
3D animation of a coastal carbon capture facility. In the foreground, tall white cylindrical tanks and two silver storage vessels stand on a concrete platform. Behind them, industrial structures including twin red and white chimneys, yellow-banded silos and blue pipelines, form part of the CO₂ capturing system.
[Text displays]
CO₂ captured
Voiceover
First carbon dioxide is captured at industrial plants.
[Scene Transition]
The animation moves smoothly across the in-action facility. Two tall red and white chimneys emit light grey vapor into the sky as blue pipelines run vertically along their sides, connecting to the pipes below. White storage cylinders and yellow-banded silos stand neatly aligned, showcasing the liquefaction process.
[Text displays]
CO₂ liquefied for transport
Voiceover
The CO₂ is then liquefied for transportation to a storage site. The CO₂ transport comes with complex technical, safety and economic challenges.
[Animated Sequence]
The scene shifts to a detailed close-up of the ship’s storage system. A large white cylindrical tank with a cutaway section reveals a translucent blue interior, representing the liquid CO₂ held within. Bright blue pipes run along the top and connect to a network of structural arms extending above the tank.
Voiceover
That’s when Northern Pioneer and Northern Pathfinder come in. Each has specially insulated tanks…
[Text displays]
Holds 7500m2 liquid CO2
Voiceover [continued]
that hold up to 7500 cubic metres of liquid CO2 at medium pressure.
[Scene Transition]
The camera pulls back smoothly from the close-up storage system, revealing the full vessel now in motion across open water.
[Animated Sequence]
The Northern Pioneer ship sails steadily through the open sea under soft daylight. The vessel’s bright blue hull is clearly marked with ‘LIQUID CO2 ‘in bold white lettering along the side. A large cylindrical LNG tank sits mid-deck beside additional storage units.
Voiceover
To lower their own greenhouse gas emissions…
[Text displays]
Can run on LNG
Voiceover [continued]
they can run on liquified natural gas.
[Animated Sequence]
As the Northern Pioneer continues its journey, a red line appears attached to the text display and the LNG tank, which tracks it smoothly with the movement of the ship.
[Scene Transition]
With an aerial view the ship continues moving steadily through the water. A red line highlights the tall, cylindrical rotor on deck, following the vessel’s motion while connected to the text display.
[Text displays]
Wind propulsion
Voiceover [continued]
Aided by wind assisted propulsion…
[Scene Transition]
The animation shifts to a rear angle of the moving vessel, following its steady path across the reflective ocean.
[Animated Sequence]
The Northern Pioneer sails towards the horizon. The animation moves swiftly downwards towards the hull of the vessel, showcasing the white streams of bubbles forming, the propeller and the movement of air across the hull’s surface.
[Text displays]
Air lubrication
Voiceover [continued]
Air lubrication systems…
[Scene Transition]
The animation showcases the ship’s side, focusing on the deep blue lower hull cutting through the waves.
[Animated Sequence]
Foam trails glisten under the sunlight as the vessel continues forward.
[Text displays]
Optimised hull
Voiceover [continued]
and a optimised hull design, which comes together enables fuel savings…
[Text displays]
Fuel savings up to 9%
Voiceover [continued]
of up to 9%
[Scene Transition]
The animation returns to a wide profile view of the Northern Pioneer.
[Animated Sequence]
The Northern Pioneer glides through the ocean, gentle waves ripple along the sides as the scene highlights the ship’s advanced, energy-efficient design and operation.
[Text displays]
Shell Shipping and Maritime
Providing integrated maritime solutions and technology leadership.
Voiceover
All backed up by over a 130 years of Shell’s shipping know-how.
[Scene Transition]
The animation shifts from the open sea to a calm coastal inlet surrounded by rocky terrain and green hills.
[Animated Sequence]
The Northern Pioneer docks alongside an unloading terminal. The vessel’s CO₂ transfer arms extend toward the onshore facility, where pipelines and storage tanks line the site.
[Text displays]
CO2 unloaded
Voiceover
At the Northern Lights receiving terminal, the CO2 is unloaded…
[Animated Sequence]
The animation moves focus to four, tall, silver storage tanks positioned against the rocky hillside. A blue pipeline runs along the base of the tanks, connecting to the unloading terminal.
[Text displays]
CO2 unloaded
Voiceover [continued]
and injected deep underground...
[Animated Sequence]
The animation pans below the water’s surface, following a series of glowing blue pipelines extending from the terminal toward the seabed. The animation showcases the journey of the injected CO2 travelling underground.
Voiceover [continued]
for permanent storage.
[Text displays]
CO2 injected underground
1450 ~-2600 depth
[Animated Sequence]
The animation holds a steady panned profile of the Northern Pioneer, highlighting the large LNG tank and bold LIQUID CO₂ lettering along the hull. The vessel rests beside the coastal terminal, framed by light clouds and distant hills.
[Text displays]
Pioneering cross=border carbon capture and storage
Voiceover
Shell and our partners in Northern Lights are working to make this cross-border CCS…
[Scene Transition]
The animation shifts to a wider view of the Northern Pioneer docked at the coastal terminal during sunset.
Voiceover [continued]
a reality right now.
[Animated Sequence]
Beside the vessel, a transparent wireframe model of a second identical ship fades into view, symbolising future expansion and scalability of the carbon transport network. The two ships appear side by side one real, one conceptual highlighting innovation and progress.
Voiceover
Not only that Shell’s already designed the next generation of low-pressure vessels, to transport up to 10x…
[Animated Sequence]
The transparent wireframe model gradually takes form, with outlines transforming into solid structures.
Voiceover
more liquid CO2 over longer distances, and lower costs.
[Scene Transition]
The animation pulls upward from the coastal terminal, gradually rising above the landscape until the full curvature of the Earth comes into view.
[Animated Sequence]
The shot transitions seamlessly back to the rotating globe seen at the beginning of the film. Golden lines encircle the planet, connecting glowing industrial icons across continents to represent the expanding global network for carbon capture and storage.
Voiceover
Innovation and long-established maritime expertise. It’s a winning combination, that makes Shell…
[Animated Sequence]
As the globe continues to rotate, Shell’s yellow pectan-shaped light forms inside it. The glowing lines pulse and rotate softly, until it pervades the screen and disappears leaving only the globe.
Voiceover
an ideal CCS partner to help you work towards net zero.
[Text displays]
Net Zero
[Background music ends with Shell Jingle]
[Scene Transition]
The glowing pectan fades softly into a bright white background, seamlessly transitioning to the final brand sequence.
[Text displays]
Powering Progress
[Animated Sequence]
The sequence concludes with the Shell emblem and powering progress message united in one image.
Carbon Capture and Storage (CCS)
CCS offers a way to reduce emissions, including from sectors that are slower-to-decarbonise. Learn more about this technology and how Shell is working to unlock its potential around the world.
Disclaimers
1 McKinsey, Global Energy Perspective 2024, September 2024
2 Shell Catalysts and Ventures, Blue Hydrogen Production
3 IPCC, Carbon Capture and Storage, 2005
4 Direct Air Capture Coalition, Frequently Asked Questions
5 IEA, Direct Air Capture, 2022
6 World Bank, What is Carbon Pricing?
7 Congress.gov, The Section 45Q Tax Credit for Carbon Sequestration, August 2023
8 Global CCS Institute, 2023. The Global Status of CCS 2023, November 2023
9 Shell, Quest Facility Spotlight: showing how large-scale CO₂ capture can be safe and effective
