US Class VI CCS Permitting Trends: 2026 Update

The landscape for U.S. Carbon capture and sequestration (CCS) is seeing a shift in momentum, with permit approvals for Class VI wells accelerating in the first half of 2026. Recent data reveals that three final permits have already been issued this year, matching the total number of approvals granted throughout all of 2025.

Permitting Momentum and Application Trends

Two permits were approved in the first quarter of 2026, followed by a third issued on April 10. This acceleration is complemented by the issuance of five draft permits during the first quarter across Colorado, Kansas, Louisiana and Texas.

The EPA has indicated that nearly two dozen additional applications could receive draft permits within 2026, though the agency noted that timeline extensions remain common.

However, new application volume has tapered. Only three new Class VI applications were submitted in the first quarter, falling below the four-year quarterly average of seven.

Did You Know? By the start of the second quarter of 2026, the U.S. Had already matched its entire 2025 total for final Class VI permit approvals.

Pipeline Analysis and State Primacy

There is currently a significant volume of projects awaiting approval. A total of 106 Class VI applications are under review, representing 387 total wells.

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The distribution of these applications includes 54 under the EPA (211 wells), 30 under Louisiana’s authority (96 wells), and 18 under Texas’ authority (69 wells).

At the same time, some projects are exiting the pipeline. Four existing applications, totaling nine wells and 10 mtpa of capacity, were recently withdrawn.

State-level dynamics are also evolving. Indiana has enacted a law requiring the state to pursue primacy, while Utah has advanced to Phase III, the proposed rulemaking stage.

Expert Insight: Samantha Carter notes that the current environment presents a paradox: while approvals are building, the slowdown in new submissions creates a large but uncertain near-term pipeline. The reliance on iterative regulator feedback and the frequency of schedule extensions make investment planning particularly complex for operators.

Future Capacity Projections

As of the end of the first quarter of 2026, five CCS projects were actively injecting CO₂ through Class VI wells, with a current injection capacity of 5.2 mtpa.

Looking forward, capacity could scale materially over the next several years. Analysts suggest that capacity may exceed 100 mtpa by the end of 2027.

In a longer-term scenario, capacity could potentially reach 300 mtpa by 2030, although these projections remain subject to ongoing timing risks, withdrawals, and regulatory feedback.

Frequently Asked Questions

How many Class VI permits were approved in 2026 compared to 2025?
As of early 2Q26, three final permits were issued in 2026, which matches the total number of approvals issued in 2025.

Which states are currently pursuing or advancing in permitting primacy?
Utah has advanced to Phase III (proposed rulemaking), and Indiana has enacted a law requiring the state to pursue primacy.

What is the projected injection capacity for the coming years?
Capacity could exceed 100 mtpa by the end of 2027 and may reach 300 mtpa by 2030, depending on timing risks.

How do you view the balance between regulatory speed and project withdrawals in the energy transition?