ClearBridge Highlights Carbon Capture Innovations Across Industries

Carbon capture and sequestration (CCS) technologies are becoming increasingly vital in the global effort to reduce carbon emissions, particularly from heavy industries. As outlined in the latest commentary from ClearBridge Investment Management, advancements in CCS are helping companies drive market share and improve financial performance. This analysis focuses on the diverse approaches taken by ClearBridge portfolio companies in their CCS initiatives.

Innovative Approaches to Carbon Capture

The deployment of renewable energy sources such as solar and wind remains crucial in the transition to cleaner energy. Yet, CCS is a key technology for industries that generate unavoidable CO2 emissions. ClearBridge’s portfolio showcases a range of CCS technologies, demonstrating the multifaceted nature of this critical solution. Recent discussions with portfolio companies have highlighted ongoing developments in CCS across various sectors, revealing how these innovations are enhancing operational efficiencies and boosting cash flows.

Among the notable players is Linde, a leading industrial gas company. ClearBridge recently toured Linde’s autothermal reformer (ATR) facility in Clear Lake, Texas, where the company produces blue hydrogen and captures CO2 to support the chemical manufacturing processes of partners like Celanese. Blue hydrogen, produced via fossil fuels with integrated carbon capture, is increasingly vital for various industrial applications. Linde’s ATR technology stands out for its energy efficiency and higher CO2 concentration, making it a superior option for carbon capture.

Linde’s initiatives have proven successful, as the company avoided over 96 million metric tons of CO2 equivalent emissions in 2024, significantly surpassing its own operational emissions. This success is a testament to Linde’s expertise in sustainability, enabling it to secure further projects that support clean hydrogen and ammonia production across the United States.

Advancements in Agricultural Carbon Capture

Another significant player in the carbon capture landscape is Green Plains, one of North America’s largest producers of ethanol and bio-based products. Based in Nebraska, the company recently met with ClearBridge representatives to discuss its carbon capture strategies. Green Plains has pivoted towards CCS, suspending less cost-effective projects to focus on capturing biogenic CO2 from its fermentation processes.

The company is collaborating with Tallgrass Energy on the Trailblazer carbon pipeline, which is expected to sequester 800,000 tons of CO2 annually, beginning in 2025. By utilizing the 45Z tax credit for clean fuel production, Green Plains anticipates generating $150 million in revenue. This focus on carbon capture is crucial for the company’s goal of achieving net-zero emissions by 2050.

In light of recent liquidity challenges, the tax credits from carbon capture initiatives are instrumental in stabilizing Green Plains’ financial position, allowing the company to significantly cut operating expenses while still investing in its sustainability efforts.

Construction Material Innovations for Emission Reduction

ClearBridge also engaged with Vulcan Materials, the largest U.S. producer of construction aggregates. Vulcan is committed to reducing its Scope 1 and 2 emissions by 10% by 2030. Recently, the company reported a 3% decrease in emissions compared to its 2022 baseline, despite the already low emissions intensity associated with aggregate production.

Key strategies for Vulcan’s emissions reduction include enhancing renewable energy use, which now accounts for 14% of its total electricity consumption, and increasing the adoption of renewable diesel in its operations. The company is also focused on improving water recycling, currently implemented at approximately 75% of its sites. This initiative not only supports sustainability goals but also reduces operational costs.

Interestingly, some of Vulcan’s basalt fines, a byproduct of rock production, can contribute to carbon sequestration through agricultural applications. This innovative use of waste material aligns with the company’s overall sustainability objectives while providing additional environmental benefits.

As the world grapples with climate change, the advancements in carbon capture and sequestration technologies highlighted by ClearBridge demonstrate a concerted effort across industries to address emissions. Companies like Linde, Green Plains, and Vulcan are leading the charge, showcasing how sustainability practices can drive both environmental and economic benefits.