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Carbon Capture, Utilisation & Storage

Climate Adaptation & WaterEnergy & Infra Updated 2026-07-15

CCUS has the hardest policy floor of any climate-transition theme -- the US 45Q credit survived reconciliation intact and the EU's CBAM became legally binding on 1 January 2026 -- but 2025 also saw more than $7.5bn of project cancellations as European majors pulled back, leaving a sector where the law is firmly on its side even as project economics remain unproven outside of subsidy.

📈 What changed: Air Products cancelled its $4.5bn Louisiana Clean Energy Complex CCS/blue-hydrogen project on 30 June 2026, taking up to a $2.9bn pre-tax charge and extending the sector's cancell…

The Northstar view

Primary State
Policy-Backed, Subsidy-Dependent Mixed45Q and CBAM both hardened; 2025 saw $7.5bn in cancellations
Near-Term Value
Full-Chain Transport & Storage ActiveNorthern Lights operational; STRATOS startup delayed, timeline TBD
Main Risk
Subsidy Dependence / Project Cancellation Wave Watch$7.5bn cancelled in 2025 alone
Conviction
Medium ImprovingPolicy floor hardened even as some project sponsors retrench
Next Trigger
STRATOS full commercial operation and Northern Lights Phase 2 progress 2026-2028STRATOS has already slipped past 2026; Northern Lights Phase 2 on track for 2028

Six-indicator scorecard

IndicatorScoreReading
Maturity
higher is better · high confidence
36/100
First full-chain projects are now operating, but global capture capacity remains a fraction of stated 2030 targets.
Evidence Strength
higher is better · high confidence
61/100
Project milestones and policy facts are corroborated across multiple independent trackers; no peer-reviewed tier.
Commercial Proximity
higher is better · high confidence
41/100
Named corporate offtake is real and growing, but revenue remains a rounding error against the broader pipeline.
Capital & Policy Support
higher is better · high confidence
71/100
The strongest policy floor of any theme in this batch: 45Q survived reconciliation intact and CBAM is now legally binding.
Crowding Risk
lower is better · high confidence
22/100
Pure-play CCUS positioning is depressed after a wave of 2025 project cancellations; institutional capital is only selectively re-entering.
Reflexivity Risk
lower is better · medium confidence
47/100
CCUS sits inside diversified, cash-generative oil-major balance sheets, tempering reflexivity relative to pure-play clean-energy names.

Every indicator score is computed by the Northstar engine from analyst-set ordinal bands — never hand-written, never stored.

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