Western States Unite to Tackle Carbon Storage

CUSP West unites states, labs, and industry to cut risks and speed carbon capture growth in the US West

13 Jan 2026

A shift is under way in the US carbon capture industry as developers move away from isolated pilot projects towards regional coordination, with the western states emerging as a test case. The expansion of the Carbon Utilization and Storage Partnership, known as CUSP West, reflects a broader effort to make large-scale deployment more feasible.

Supported by the Department of Energy, CUSP West brings together state governments, research bodies, national laboratories and private companies. Rather than building capture plants or pipelines, the partnership focuses on coordination by integrating geological data, supporting regional planning and helping projects navigate regulatory frameworks that span multiple states.

The aim is to address common barriers that have slowed progress. Developers in the west face a combination of complex permitting processes, uneven state rules and limited transport infrastructure, despite the region’s large industrial emissions and significant underground storage potential. By improving access to subsurface data and aligning early-stage planning, CUSP West seeks to reduce uncertainty before companies commit capital.

Energy officials say the regional model is intended to support investment by allowing projects to assess technical and regulatory risks earlier. Shared mapping of storage resources and transport corridors can shorten development timelines and reduce duplication of effort, an important consideration for projects that require large upfront spending.

The initiative comes as federal policy becomes more supportive. The expanded 45Q tax credit, which provides incentives for capturing and storing carbon dioxide, has strengthened the economic case for new projects. At the same time, manufacturers and power producers face growing pressure from regulators and investors to cut emissions, increasing interest in capture and storage as a compliance option.

CUSP West does not provide direct funding for infrastructure, nor does it resolve concerns around long-term storage or public acceptance. But industry participants see the groundwork it lays as necessary for scale. In the western US, carbon capture is increasingly treated not as a series of experiments, but as a coordinated system, an approach that could shape how the technology develops across the country.