Introduction

Carbon Capture and Utilisation (CCU) is gaining traction as industries seek ways to reduce greenhouse gas emissions while creating valuable products. However, not all CCU pathways are equal. Their viability depends on market dynamics, infrastructure, and risk exposure. Four broad categories of CCU approaches illustrate these differences.

1. CCU for Material Product Sales Off-Site (Encapsulation)
One common model channels captured CO₂ into materials such as concrete, aggregates, or polymers. Here, carbon is “encapsulated” in durable products, locking it away for long lifetimes. The advantage lies in clear decarbonisation benefits and growing market demand for low-carbon construction materials. Risks include reliance on regional construction cycles, transportation logistics, and cost competitiveness against conventional materials.

2. CCU for Chemical Product Sales Off-Site
Another pathway converts CO₂ into chemicals such as methanol, fuels, or specialty products. These have high market value and are widely traded, making them attractive revenue streams. The advantage is scalability across global supply chains. Yet, risks stem from volatile commodity prices, the high energy input required for conversion, and the fact that some products, like fuels, eventually re-release CO₂ upon use, raising questions about net climate benefit.

3. CCU for On-Site Material or Chemical Use
In this model, captured carbon is transformed and directly consumed within the same industrial site—for example, reusing CO₂ in enhanced process efficiency, synthetic feedstocks, or site-specific material applications. The clear advantage is insulation from external market fluctuations and avoided transportation costs. This “captive market” model ensures guaranteed offtake, reduces commercial risk, and provides unique long-term value by embedding CCU directly into operational workflows. The trade-off is that scalability may be limited to site-specific applications, restricting broader market growth potential.

4. CCU with Alternative Market Models
Some CCU pathways pursue less conventional approaches, such as CO₂ use in algae cultivation, greenhouses, or advanced research products. These can diversify revenue and support innovation. However, these markets are often niche, fragmented, and subject to uncertain growth trajectories. While potentially disruptive, they carry significant technology and commercialization risk.

Conclusion
Each CCU pathway offers distinct advantages: durable sequestration, chemical market entry, process integration, or niche innovation. Yet, the captive on-site utilisation model stands out for its resilience. By securing an internal market, companies reduce exposure to commodity volatility and infrastructure barriers, creating a stable foundation for CCU adoption. In a landscape where both climate impact and economic certainty matter, on-site CCU markets represent a uniquely valuable strategy.