Texas set to become leading centre for carbon capture with major investment and job prospects

Texas’s existing energy infrastructure, skilled workforce and policy tools position it to become the nation’s leading centre for carbon capture, utilisation and storage (CCUS), a new assessment by the Great Plains Institute argues , and independent economic studies and industry analysis paint a consistent picture of large-scale investment and job creation if the state and federal incentives align.

According to the Great Plains Institute, accelerated carbon management deployment across Texas could attract about $62 billion in investment and support tens of thousands of jobs in construction, operations and supply-chain roles. “Texas can harness carbon management to attract investment, create jobs, and maintain its global leadership in energy,” the institute’s vice president of industrial innovation and carbon management said.

The institute recommends a suite of state-level actions to turn potential into reality: enhance franchise tax credits, expand property tax exemptions for qualifying pollution‑control equipment and preserve severance tax incentives that support enhanced oil recovery. It also endorses state-backed loan programmes and targeted grants to keep projects financially viable. The report highlights the recent decision to grant Texas Class VI primacy for CO2 injection wells as a key enabler, saying it will speed permitting by shifting responsibility for geological storage regulation to the state.

Industry voices welcomed the move. Todd Staples, president of the Texas Oil & Gas Association, described the primacy decision as an economic opportunity: “Texas landowners will benefit from payments to permanently sequester CO2 in previously unused and untapped pore space. All Texans will win from the investment and jobs that result as the CCS industry grows to respond to companies whose business plans include permanent sequestration of CO2.”

Economic studies cited by the institute reinforce the scale of the opportunity at local and state levels. A report prepared by Angelou Economics for the Texas Association of Business projects that a cluster of CCUS projects across 12 counties could create or support roughly 7,500 full‑time jobs and generate about $1.8 billion in state‑level economic activity, while boosting local tax revenues by an estimated $33.4 million that could underwrite public services. Separately, analysis from the Rhodium Group finds that federal tax incentives such as Section 45Q , which offers credits of up to $50 per tonne for CO2 permanently sequestered and up to $35 per tonne for CO2 used in enhanced oil recovery or products , materially improve the economics of deploying CCUS across multiple industrial sectors and could enable tens of millions of tonnes of annual capture if fully utilised.

Project and infrastructure forecasts in the Great Plains Institute’s modelling envisage rapid expansion: dozens of capture facilities in the near term, nearly 100 by mid‑century, and an expanded CO2 transport network stretching almost 2,000 miles to connect onshore and offshore sites. Independent modelling of carbon‑removal hubs also points to sizeable local impacts; Rhodium’s analysis of direct air capture hubs shows construction employment measured in the low thousands and hundreds of ongoing operational roles, underscoring the employment diversity CCUS and related technologies can bring.

Safety, workforce readiness and permitting are recurring themes. Proponents point to the long operating history of CO2 pipelines in the United States and industry safety standards, with the Carbon Capture Coalition noting a strong safety record for CO2 transmission infrastructure. At the same time, the Great Plains Institute and others urge proactive community engagement and adherence to best practice: the Texas Commission on Environmental Quality’s public involvement requirements and guidance from bodies such as the American Petroleum Institute are offered as frameworks to ensure environmental and social licence.

Preparing a skilled pipeline of subsurface professionals is already underway. The University of Texas at Austin, through the Gulf Coast Carbon Center, offers a professional training programme titled “Subsurface Skills for Carbon Capture and Storage”, aimed at geoscientists and engineers and covering technical screening, modelling, monitoring and permitting , skills that will be in demand as projects move from planning to operation.

Financial markets and private capital are also watching. Commentary in state business outlets highlights venture capital and institutional financing as essential complements to tax credits and public incentives for scaling projects, particularly for retrofit work and the deployment of novel capture technologies. One regional analysis suggests cumulative private investment in Texas CCUS could approach the tens of billions of dollars by the mid‑2030s, and that the sector could create both substantial temporary construction employment and long‑term operations jobs.

Risks and trade‑offs remain. Project proponents stress the need to streamline permitting and maintain robust incentives while ensuring environmental safeguards and meaningful community consultation. Critics and some community groups warn that incentives must not simply prolong fossil fuel‑dependent infrastructure without clear, verifiable long‑term emissions benefits. The Great Plains Institute’s recommendations aim to balance those pressures by pairing fiscal incentives with permitting reform and stakeholder engagement.

If Texas follows the blueprint set out by the Great Plains Institute , amplifying tax and grant incentives, leveraging recent regulatory changes, and investing in workforce and community engagement , the state stands to convert its geological and industrial advantages into a major carbon‑management economy. Industry and independent studies alike suggest that, with coordinated policy and capital, CCUS could deliver substantial investment, tangible local benefits and new employment streams across the Lone Star State.