How carbon capture and hydrogen are reshaping North America’s energy landscape

Across North America, the energy transition is no longer a theoretical ambition. Few developments highlight this shift more than the surge in carbon capture and hydrogen technologies. Both are attracting substantial attention because they offer practical and scalable pathways to reduce emissions while meeting society’s ever-growing need for heat, fuel and power.

For many operators, the most compelling aspect of these technologies is not their innovation but rather their compatibility with existing infrastructure. Carbon capture offers a less disruptive route to decarbonisation by integrating directly with established processes. Hydrogen, while more transformative, is emerging as a clean fuel that can support long-term sustainability goals. Together, they represent two of the most significant building blocks of North America’s evolving energy mix.

Momentum is accelerating; some technologies are ready for scale, while others still require development. Moving from small pilot projects to widespread commercial adoption will demand significant effort.

Why carbon capture and hydrogen matter now

Energy producers, industrial operators and policymakers are facing the same challenge: how to reduce emissions while maintaining affordable and reliable energy. Many industries can’t simply shut down existing plants, redesign processes from scratch or absorb lengthy downtime. The appeal of carbon capture lies in its ability to preserve established operations while significantly reducing carbon dioxide emissions. Operators can continue to utilise their existing infrastructure without compromising their decarbonization ambitions.

Hydrogen, by contrast, represents a bolder step. As a zero-emission fuel, it provides long-term alternatives for sectors where electrification or carbon capture alone may not be sufficient. While the hydrogen economy is still taking shape, production technologies, compression systems and transport solutions are advancing rapidly.

The forces accelerating adoption in North America

Adoption is being driven by a convergence of financial incentives, regulatory pressure and increasing technological readiness, each reinforcing the case for large-scale deployment.

• Economics: Incentives that shift the investment equation

  In the U.S, federal tax credits have transformed the financial viability of carbon capture. Point-source capture facilities now benefit from substantial per-tonne credits that support project payback timelines and encourage long-term planning. Enhanced oil recovery (EOR) projects offer additional economic upside, making the integration of carbon capture more attractive to operators with existing CO₂ utilisation expertise.

  Canada has similarly introduced tax incentives tailored to carbon capture, helping developers move from planning to execution. These policies are working, investment in capture projects is increasing and multiple large-scale initiatives are progressing through the development pipeline.

  Hydrogen incentives, while more varied, are beginning to reshape project economics. Production credits, feasibility funding and infrastructure grants are helping operators evaluate blue and green hydrogen options with fewer financial barriers.

• Policy: Reflecting public expectations

  Public sentiment is having a strong influence on government action. Communities expect safer operations and lower emissions, and policymakers are responding with regulations that encourage decarbonisation. For companies, this creates a clearer business case for adopting lower-carbon technologies earlier in the asset lifecycle.

• Technology: Mature enough to matter

  Many point-source carbon capture technologies are established and widely available. There are also many pilots currently underway. Hydrogen production technologies are also advancing, with blue hydrogen benefiting from proven natural gas reforming and carbon capture processes. Green hydrogen is progressing more slowly, but electrolyser technology is improving, and costs are expected to decrease as manufacturing scales.

These three forces—economics, policy and technology—are now converging, accelerating momentum across the continent.

How mature are carbon capture and hydrogen technologies today?

The maturity of carbon capture and hydrogen differs widely, shaping how quickly each can move from pilot projects to large-scale deployment.

• Carbon capture: Established, but not complete

  Point-source carbon capture is the most mature segment of the industry. More than 50 facilities operate globally, with many located in North America. Operators understand that the integration requirements and supporting technologies, such as compressors, CO₂ dryers and separation systems, are widely available.

  Transport infrastructure is also well developed in certain regions, especially where pipeline networks for enhanced oil recovery already exist. However, storage remains a bottleneck. Licensing can be slow, as extensive geological reviews and environmental assessments are required before injection wells are approved for use. Utilisation technologies, such as mineralisation or conversion into fuels or plastics, carry enormous potential but remain in early commercial stages.

• Hydrogen: Significant progress, significant gaps

  Hydrogen’s development is more varied. Blue hydrogen projects have gained traction because they leverage established natural gas reforming infrastructure and align closely with carbon capture expertise. Green hydrogen, reliant on large-scale electrolysers and low-cost renewable energy, remains expensive. Infrastructure is also limited. Pipelines, storage hubs, compression stations and standards for purity vary across regions, creating uncertainty for investors.

Of particular concern is the lack of large, long-term offtake agreements. Without guaranteed buyers, developers struggle to secure financing or justify multi-year investment decisions. When these barriers ease, hydrogen deployment is likely to accelerate dramatically.

The biggest challenges to scaling up

Achieving large-scale deployment is not simply a matter of building more assets; it requires a comprehensive approach. Operators face interconnected technical, economic and regulatory barriers.

• Inconsistent standards

  Across hydrogen and carbon capture, standards for purity, safety, materials, pressure ratings and transport requirements are still evolving. For developers, inconsistent specifications between countries or states introduce uncertainty, complicating design decisions and raising costs.

• High capital costs

  Both hydrogen and CCUS require significant upfront investment in process units, compressors, pipelines and control systems. Electrolysers remain expensive, and carbon capture systems require substantial auxiliary infrastructure, which significantly impacts the project's footprint.

• Complex regulatory environments

  Storage permitting for CO₂ can take years. Hydrogen transport regulations differ across regions and are still maturing. Jurisdictional overlaps create uncertainty that can slow project advancement even when the technology is ready.

• Supply chain limitations

  Large-scale CCUS and hydrogen systems require specific materials, specialised compressors, high-integrity valves and advanced sealing technologies. Supply chains are adapting but without industry standards it is difficult to optimise for mass deployment.

What it will take to move beyond pilots

The pathway to full-scale deployment requires progress across several dimensions.

• More substantial, long-term policy incentives

  Stable regulatory frameworks and long-term tax incentives allow investors to plan with greater confidence. Consistency helps developers commit to multi-year projects without fear of sudden policy reversals.

• Shared infrastructure investment

  Centralised hydrogen hubs, CO₂ trunk pipelines and dedicated storage solutions will ease barriers for new entrants and reduce duplicate investment.

• Cross-border collaboration

  North American energy systems are deeply interconnected. Harmonised standards across the U.S., Canada and Mexico will reduce complexity and create clearer pathways for regional development.

• Standardisation and design consistency

  When projects can adopt consistent approaches to materials, sealing systems, filtration configurations and monitoring requirements, costs and risks are reduced. Early engagement with engineering partners and across the supply chain enables this optimisation.

The next five to ten years will have a significant impact

In the near term, blue hydrogen and point-source carbon capture are poised for the greatest progress. Both have established technological foundations and clear policy support.

Green hydrogen and direct air capture offer significant long-term potential but remain limited by cost and infrastructure immaturity. These technologies may deliver transformative results, but they are likely to do so over longer timelines.

What matters most is recognising that hydrogen and CCUS are not replacements for traditional energy systems. They are additions—expanding the energy toolbox in the same way coal, oil, natural gas and nuclear did in earlier eras. Each technology builds upon the last, helping to meet society’s increasing energy demand with a lower environmental impact.

Applying proven engineering to new energy challenges

North America’s energy transition will be shaped by how effectively carbon capture and hydrogen move from concept to reliable operation. With decades of experience supporting rotating equipment in demanding CCUS and hydrogen applications, John Crane brings practical insight into how these technologies perform at scale, helping operators progress with confidence as projects mature.

This article is based on the conversation that Jessi Munsey, Business Development Manager for New Energy at John Crane, had with Pumps & Systems in a podcast episode about practical perspectives on carbon capture and hydrogen technologies. Click here to listen to the podcast episode.