Decarbonisation Technology February 2026 Issue

growing interest in natural gas generation paired with post-combustion carbon capture to serve large data centre loads. Developers, utilities, and infrastructure investors began evaluating CCUS-integrated gas projects as a way to provide firm, controllable power close to major digital campuses ( Global CCS Institute, 2025) . This was driven by the need for highly reliable local power that could operate continuously and respond instantly to the demands of high-performance compute. These projects also benefited from proximity to CO₂ storage resources and established pipeline corridors, which reduced transport costs and improved feasibility. While still in early stages, the concept gained momentum as load growth outpaced the speed at which new transmission, substations, and renewable interconnections could be built. For operators facing multi-year interconnection queues or limited grid headroom, CCUS-enabled gas emerged as a practical pathway to combine reliability with lower-carbon generation in areas experiencing rapid digital and industrial expansion. Direct air capture (DAC) continued to attract investment but stayed in the early commercial phase, with high capital costs limiting the number of projects moving toward construction (US DoE, 2025a) . In short, CCUS in 2025 displayed substantial long-term potential but was shaped by near-term pragmatism, with progress driven by smaller, more executable projects rather than the large hubs envisioned earlier in the decade. Role of natural gas in a high-demand decade Natural gas maintained a central role in the US energy system through 2025. Production levels remained near historic highs, driven primarily by associated gas from oil basins. Liquefied natural gas exports expanded, linking US supply more closely to international markets and reinforcing the country’s position as a major global energy supplier ( US EIA, 2024 ) ( US EIA, 2025b ). In the power sector, gas provided the flexibility needed to balance rising renewable penetration and growing data centre demand. Several utilities initiated or expanded simple- cycle turbine projects that could come online quickly to support local reliability needs ( US EIA, 2025c ). This underscores the stabilising role natural gas continues to play, supporting

Class VI permit status

Active: Final permit has been issued

Bubble size represents 2GW of power demand

Operational CO pipeline

renewable growth by providing firm capacity when transmission constraints or weather variability limit clean generation. Transition defined by discipline and durability The year 2025 saw the energy transition learning how to operate under real-world conditions. Markets, technologies, and policies all continued to move, but with a sharpened sense of what it takes to turn ambition into durable progress. Companies adapted their strategies, developers recalibrated project pipelines, and states and regions leaned into their comparative strengths. The actors who advanced most effectively were those who embraced complexity rather than resisted it. What emerged was a clearer picture of an energy transition that is broader and more resilient than any single policy cycle. The rise of digital load, the persistence of infrastructure bottlenecks, and the evolution of clean energy technologies all underscored the need for solutions that are both innovative and grounded. That blend of creativity and pragmatism is now shaping the investments and decisions that will define the next phase of US energy development. Figure 5 Announced and operating AI training and hyperscale data centres, CO2 transport, and storage by US power market. Source: (BloombergNEF, 2025a) BNEF Carbon Capture for Powering US Data Centers

Nishadi Davis Nishadi.Davis@woodplc.com VIEW REFERENCES