US CO2 Storage – Class VI Momentum and OBBBA Effects
August 6, 2025
Class VI wells are designed specifically for the permanent geologic sequestration of CO₂ in deep subsurface formations. These wells are regulated under the U.S. Environmental Protection Agency’s (EPA) Underground Injection Control (UIC) program. As the only regulatory pathway for dedicated CO₂ storage in the U.S., Class VI wells are essential to the deployment of onshore carbon capture and storage (CCS) projects.
This note provides a status update on Class VI permitting as of the end of June 2025. It analyzes progress by state and company, highlights key trends, identifies the challenges preventing permits from resulting in actual project execution, and examines the impact of the 2025 OBBBA on U.S. CCS deployment.