Capturing the $100 Billion Carbon Management Opportunity in Texas

This policy brief by RMI argues that Texas is uniquely positioned to lead the global carbon management economy due to its existing industrial infrastructure, geological assets, and a skilled workforce. The document highlights how recent federal policy changes, specifically the One Big Beautiful Bill Act (OBBBA), have enhanced the financial viability of carbon capture and utilization projects through modifications to the 45Q tax credit.

• The One Big Beautiful Bill Act (OBBBA) has modified the 45Q carbon oxide sequestration tax credit to increase the value of projects that utilize or sell carbon, making them equal in value to projects that sequester carbon for both direct air capture (DAC) and point-source capture facilities.
• Texas possesses significant infrastructure and geological advantages for carbon management, including 2,325 miles of CO2 pipeline infrastructure (over 40% of the US total) and a potential storage capacity of over 1.6 billion metric tons (Mt), which is equivalent to 4,000 years of the state's current carbon output.
• Major investments are already occurring in Texas, including a $500 million DAC project by Occidental Petroleum in the Permian Basin, ExxonMobil's $1.9 billion acquisition of the 1,300-mile Denbury pipeline, and a $7 billion blue hydrogen facility in Baytown designed to capture over 7 Mt of carbon annually.
• RMI analysis projects that by 2050, carbon management could bring $12 billion to $94 billion in investments to Texas, resulting in a cumulative economic benefit of $24 billion to $182 billion and the creation of 21,000 to 211,000 new jobs.
• The EPA proposed approval of Texas's Class VI underground injection well primacy application in June 2025, a step intended to streamline permitting for carbon storage.

APA

RMI (2025). Capturing the $100 Billion Carbon Management Opportunity in Texas. https://rmi.org/resources/capturing-the-100-billion-carbon-management-opportunity-in-texas/

Chicago

RMI. Capturing the $100 Billion Carbon Management Opportunity in Texas. 2025. https://rmi.org/resources/capturing-the-100-billion-carbon-management-opportunity-in-texas/.

Wikipedia

{{cite report |author=RMI |title=Capturing the $100 Billion Carbon Management Opportunity in Texas |date=15 October 2025 |url=https://rmi.org/resources/capturing-the-100-billion-carbon-management-opportunity-in-texas/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025capturing, author = {{RMI}}, title = {{Capturing the \$100 Billion Carbon Management Opportunity in Texas}}, institution = {RMI}, year = {2025}, month = oct, url = {https://rmi.org/resources/capturing-the-100-billion-carbon-management-opportunity-in-texas/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }