Everything’s bigger in Texas: even carbon capture and underground storage (CCUS) build-out. Carbon management deployment could generate $62 billion in investment and support tens of thousands of jobs in construction, operations, and supply-chain management across Texas, says a recent study by the Great Plains Institute.

Texas is well poised to capitalize on an increased interest in CCUS technologies, given the state’s long history of oil and gas exploration and production and its possession of the largest energy workforce in the country. According to the vice president of industrial innovation and carbon management at the Great Plains Institute:

“Texas can harness carbon management to attract investment, create jobs, and maintain its global leadership in energy.”

Texas already has the assets needed to be America’s CCUS leader. Enhancing state incentives and streamlining regulatory approvals will promote further project deployment and economic growth in the Lone Star State.

How CCUS Capabilities Can be Maximized in Texas

The Great Plains Institute laid out a set of recommendations to follow in order for Texas to take advantage of the growth opportunity presented by CCUS. The Institute recommended boosting Texas’s already robust set of incentives for CCUS projects such as:

• Franchise tax credits (Texas Tax Code §171.602)
• Property tax exemptions for qualifying pollution control equipment (Texas Tax Code §11.31)
• Severance tax incentives for enhanced oil recovery (EOR) (Texas Tax Code § 202.0545)

The implementation of funding programs like state-backed loan programs and targeted grants would also help projects remain economical in the state.

The recent granting of Class VI well primacy to the state will also have a positive impact on CCUS roll-out. The decision made on November 12, 2025, by the EPA will increase the state’s control over its geological resources, speeding up the permitting process by reducing federal bottlenecks. These wells can be used to create permanent storage of CO2 in saline formations throughout the state.

Texas Oil & Gas Association President Todd Staples applauded the Trump administration’s decision to grant Class VI primacy  to Texas:

“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.”

The Great Plains Institute projects widespread CCS deployment opportunities in Texas, including 48 facilities projected in the near term and 97 by midcentury. Additionally, the state’s expansive CO2 transport network would be expanded, with 1,960 miles of CO2 pipeline connecting 42 onshore and offshore sites by midcentury.

CCUS is Good for Texans

Texas’s CCUS build out, if properly supported by federal and state policies, is projected to drive job creation and investment in the state. A study by the Rhodium Group found that facilitating carbon management technologies on preexisting facilities could create an annual average of 28,000 direct jobs over a 15-year period and unlock up to $62 billion in private investment. On a county level, a study by Angelou Economics found that four different CCUS projects in 12 counties could create 7,500 jobs and generate $1.8 billion in state-level impact.

Furthermore, CCUS development can be safely deployed by leveraging preexisting state tools and enhancing others. CO2 pipelines have a long history of safety, as attested by the Carbon Capture Coalition:

“Carbon dioxide (CO2) pipelines have an excellent safety record over the 50 years they have been in operation in the United States (US), with only one reported injury and no fatalities.”

Additionally, the state can look at precedents like the Texas Commission on Environmental Quality’s (TCEQ) requirement of a “Public Involvement Plan” for certain projects or incorporate recommended practices from organizations like the American Petroleum Institute (API) to ensure high environmental standards.

Bottom line: Texas already has everything it needs to be America’s CCUS leader. By cutting red tape, engaging with stakeholders, and amplifying tax incentives, CCUS can be a major jobs and investment engine in the state.