Carbon Dioxide Production in the US: Market Size, Businesses & Forecast 2026

The carbon dioxide production industry in the United States comprises facilities that extract gas from naturally occurring underground reservoirs or capture it as a byproduct from industrial activities such as ammonia manufacturing, ethanol fermentation, and hydrogen production. According to the US Environmental Protection Agency (EPA) Greenhouse Gas Reporting Program (GHGRP) Subpart PP data, the total commercial supply of carbon dioxide reached 42.9 million metric tons in 2023, representing a moderate decline from the 46.8 million metric tons recorded in 2022. The industry's direction is increasingly shaped by carbon capture, utilization, and storage (CCUS) initiatives and federal decarboni

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What does the Carbon Dioxide Production in the US industry cover?

This industry encompasses establishments engaged in the extraction of raw carbon dioxide gas from natural geologic formations and the physical capture of process gas streams from industrial manufacturing units. The captured or extracted streams are purified, liquefied, compressed, or transformed into solid dry ice for wholesale distribution or direct pipeline delivery to industrial consumers. The scope excludes the subsequent cross-country pipeline transportation networks or localized purification processes performed by non-producing distributors.

• •Covers both natural geological source extraction and industrial byproduct capture under federal reporting categories.
• •Primary processed forms include bulk compressed gas, refrigerated liquid carbon dioxide, and solid dry ice blocks or pellets.
• •Regulated primarily through the EPA Greenhouse Gas Reporting Program Subpart PP, tracking suppliers distributing bulk gas streams into commerce.

Who operates in the industry and how is it structured?

The domestic market features two distinct supply channels: natural production wells that yield high-volume, high-purity geologic gas, and industrial process plants that capture the gas to prevent atmospheric venting. Data from the EPA GHGRP in 2023 indicates that the supply structure relies heavily on natural extraction fields, though industrial byproduct plants constitute a significantly larger number of individual reporting facilities across the country.

• •In 2023, natural geological sources accounted for 26.8 million metric tons of the total carbon dioxide supplied to the US market.
• •Industrial byproduct capture from manufacturing process units contributed 16.1 million metric tons to the national commercial supply in 2023.
• •The supply network consists of 117 distinct industrial capture operations and 13 specialized natural extraction source facilities as of official registries.

What drives demand in the industry?

The primary consumption driver for commercial carbon dioxide in the United States is enhanced oil recovery (EOR), which utilizes high-pressure gas injection to mobilize residual crude oil from mature reservoirs. Secondary demand flows from consumer-facing sectors, notably the food and beverage industry for carbonation, flash freezing, and temperature-controlled logistics. Emerging demand is driven by geological sequestration projects seeking permanent sub-surface disposal of captured emissions.

• •Enhanced oil and gas recovery projects consumed 33.76 million metric tons of the total carbon dioxide supply in 2023.
• •The food and beverage sector required 4.59 million metric tons of carbon dioxide in 2023 for preservation, chilling, and beverage carbonation.
• •Geologic sequestration under Class VI and Class II-ER injection structures securely isolated 14.93 million metric tons of carbon dioxide in 2023.

Who are the notable companies in the industry?

The commercial carbon dioxide production and supply landscape in the United States is highly consolidated, dominated by multi-national industrial gas corporations and specialized energy firms holding vast natural reserves. These entities leverage extensive capital infrastructure, localized production facilities, and proprietary distribution logistics to maintain market positioning near major industrial hubs. Regional distribution is dictated by transport distances, as bulk liquid and solid carbon dioxide incur high logistical costs over long distances.

• •Linde plc operates as a major domestic supplier through its localized manufacturing plants, providing liquid and solid carbon dioxide variants.
• •Air Liquide S.A. maintains significant infrastructure across the United States to capture, purify, and supply merchant industrial gases.
• •Air Products and Chemicals, Inc. integrates carbon dioxide capture units within its extensive domestic hydrogen and steam methane reforming facilities.
• •Exxon Mobil Corporation commands vast natural geologic reserves and transport networks, following its acquisition of Denbury Inc. and its Jackson Dome assets.

What are the recent trends and outlook?

The industry is undergoing a structural realignment driven by financial incentives for carbon capture and permanent storage, which is shifting the supply balance from natural wells to industrial capture. Disruptions in industrial manufacturing sectors, such as seasonal maintenance at ammonia or ethanol plants, frequently create localized supply crunches for merchant food-grade gas. Looking ahead, the expansion of commercial direct air capture (DAC) facilities is projected to introduce a new, non-fossil source category to the domestic supply mix.

• •Total commercial carbon dioxide supply experienced a contraction from 46.8 million metric tons in 2022 down to 42.9 million metric tons in 2023.
• •The Section 45Q tax credit serves as a major fiscal mechanism, providing credits per metric ton for verified geologic storage or commercial utilization.
• •Industrial gas capture from hydrogen and chemical plants is increasingly prioritized over natural geologic dome extraction to align with corporate net-zero targets.

How is the industry regulated?

Operations within this sector are heavily governed by environmental monitoring, occupational safety, and sub-surface injection mandates enforced by federal and state entities. Facilities distributing or capturing carbon dioxide must comply with stringent volume tracking and composition analysis to verify commercial supply flows or qualify for federal tax benefits. Sub-surface injection wells are categorized into specific regulatory frameworks depending on whether the primary goal is resource extraction or permanent disposal.

• •The US Environmental Protection Agency enforces 40 CFR Part 98 Subpart PP, demanding strict quarterly mass flow or volumetric reporting from suppliers.
• •The EPA Underground Injection Control (UIC) program regulates Class VI wells for long-term sequestration and Class II wells for enhanced oil recovery.
• •Taxpayers utilizing carbon dioxide for tax credits must synchronize reporting with IRS Form 8933 and maintain an EPA-approved Monitoring, Reporting, and Verification (MRV) plan.

Government, statistical and trade sources used for this Claight analysis.

• US Environmental Protection Agency Greenhouse Gas Reporting Program 2023 ·
• US Federal Register 40 CFR Part 98 Subpart PP ·
• US Energy Information Administration (EIA) Annual Energy Outlook Documentation