What Is Carbon Capture and Storage?

By Matthew DiLallo – Updated Jun 9, 2025 at 12:25 AM EST

Key Points

CCS captures CO2 from sources like factories and stores it underground, reducing environmental impact.
Investments in CCS are growing, with projections of a $4 trillion market by 2050.
Occidental Petroleum is expanding into CCS, building the world's largest DAC site in Texas.

Carbon capture and storage, or CCS, is a process that captures carbon dioxide gas emissions and safely sequesters them underground. It helps reduce carbon emissions that are harmful to the environment and contribute to climate change. Companies and governments are investing heavily in CCS to make the technology commercially viable so it can contribute to a lower-carbon world.

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The STRATOS facility will be able to capture 500,000 tonnes of carbon dioxide per year when it comes online in 2025. Occidental is working to commercialize the project by selling carbon credits to companies seeking to achieve their emission-reduction targets.

STRATOS is one of many DAC projects the company hopes to develop. It also plans to license its DAC technology. Occidental believes it could eventually make as much money from CCS as it currently does from its oil and gas production business.

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.