Berkshire Hathaway CCUS Strategy, Pacifi Corp’s IRP, $2.2 B Budget, and 24 DOE Project Cancellations (2025)

CCUS Adoption Risks: Berkshire Hathaway Energy’s Calculated Caution Amid Market Upheaval

In 2025, Berkshire Hathaway Energy’s (BHE) approach to carbon capture is defined by strategic evaluation and risk mitigation, not aggressive commercial deployment. While competitors like Exxon Mobil and Occidental Petroleum advanced large-scale projects, BHE focused on foundational planning, using the period to de-risk its entry into a market characterized by significant policy and technological volatility. This deliberate pace is a direct response to the high capital costs and project failures observed across the industry, positioning BHE as a powerful but latent player waiting for a more stable investment environment.

• Between 2021 and 2024, BHE‘s climate strategy was articulated through its long-term 2050 net-zero emissions goal. In 2025, this strategy became more concrete and cautious, with its subsidiary Pacifi Corp initiating its 2025 Integrated Resource Plan (IRP) to formally model the techno-economic feasibility of retrofitting its fossil fuel assets with carbon capture.
• The company faces significant external pressure to decarbonize, with a January 2025 analysis identifying its coal plants as the “dirtiest” in the U.S. based on nitrogen oxide emissions rates. This reputational risk makes CCUS a near-inevitable component of its long-term asset management, yet the high costs, with Direct Air Capture (DAC) estimated at $400 to $1, 500 per tonne in 2025, reinforce its cautious stance.
• Unlike early movers, BHE‘s primary market signal in 2025 was not in sequestered tonnage but in its preparatory actions. This includes evaluating existing infrastructure, such as its 1, 700-mile Kern River pipeline system, for potential liquid CO 2 transport, creating the groundwork for future large-scale capital deployment once technology and policy risks subside.

$3.7 B in Cancellations: Berkshire Hathaway Energy Navigates DOE Funding Volatility

The 2025 carbon capture investment landscape was defined by profound uncertainty, highlighted by the U.S. Department of Energy’s (DOE) widespread cancellation of previously announced funding. This policy whiplash validated BHE‘s decision to withhold direct capital allocation to large-scale CCUS projects, despite earmarking $2.2 billion for new power generation. The company is strategically avoiding the financial pitfalls that ensnared other projects dependent on fluctuating federal support.

• In 2025, the DOE canceled funding for 24 decarbonization projects worth a total of $3.7 billion, creating significant instability for the sector. This included the cancellation of 19 of 21 previously awarded direct air capture hub development projects, undermining confidence in the long-term reliability of federal incentives.
• While the Section 45 Q tax credit, offering up to $85 per ton for sequestered CO 2, remains the primary financial driver for U.S. projects, the DOE’s actions demonstrated that even well-funded initiatives are not immune to policy risk. This reinforces the logic behind BHE‘s focus on internal planning and feasibility studies before committing major capital.
• BHE‘s planned $2.2 billion in 2025 spending on new generation and wind-repowering projects competes directly for capital with potential CCUS investments. The lack of specific allocation to carbon capture from this budget underscores the company’s position of waiting for technological maturity and policy stabilization.

Carbon Cost Exposure High for ‘Brown’ Sectors

This chart quantifies the underlying financial risk (carbon costs) that makes CCUS necessary for companies with significant fossil fuel assets. This high-stakes environment, when combined with the ‘DOE Funding Volatility’ mentioned in the section, explains why projects face immense pressure and are prone to cancellation.

(Source: ScienceDirect.com)

Table: U.S. Carbon Capture Project Cancellations (2025)

Berkshire Hathaway Energy’s Observational Stance in the 2025 CCUS Partnership Market

In 2025, Berkshire Hathaway Energy distinguished itself by its absence from major public CCUS partnerships, a stark contrast to other energy and industrial firms that actively formed collaborations. This indicates a deliberate strategy to observe the market, evaluate potential technology partners, and avoid premature commitments in a high-risk environment. While competitors secured offtake agreements and attracted billions in investment, BHE focused on internal analysis, signaling it will likely enter the partnership arena as a well-informed buyer rather than a speculative early mover.

• Occidental Petroleum‘s subsidiary, 1 Point Five, advanced its commercial strategy by signing a 25-year carbon offtake agreement with a joint venture including CF Industries, JERA, and Mitsui. This move secures a long-term revenue stream for its Direct Air Capture projects, a step BHE has not yet taken.
• In a major financial endorsement of CCUS infrastructure, Italian energy firm Eni secured a $1.2 billion investment from Black Rock for its carbon capture business. This highlights the availability of private capital for well-structured projects, a potential future funding source for BHE.
• Technology providers like Babcock & Wilcox also moved forward, receiving a limited notice to proceed on a contract to supply its Solve Bright CO 2 capture technology for a large-scale U.S. power plant. BHE is likely monitoring the performance of such deployments to inform its own future technology selection.

Table: Competitor CCUS Partnerships (2025)

U.S. Mountain West: Berkshire Hathaway Energy’s Geographic Center of Gravity for CCUS Planning

North America, and specifically the U.S., remains the undisputed global leader in CCUS development, a position cemented by favorable geology and robust policy incentives like the 45 Q tax credit. Within this context, Berkshire Hathaway Energy‘s strategic planning in 2025 is geographically concentrated in the U.S. Mountain West, where its subsidiary Pacifi Corp operates a significant fleet of fossil fuel assets that are candidates for carbon capture retrofits. The region’s unique combination of emissions sources, existing infrastructure, and geological storage potential makes it the logical hub for BHE‘s future CCUS activities.

• From 2021 to 2024, CCUS project announcements were widespread across the U.S. Gulf Coast and Midwest. In 2025, BHE‘s focus sharpened on its own operational footprint, with Pacifi Corp’s 2025 IRP evaluating specific assets like the Dave Johnston Power Plant in Wyoming for potential CCS retrofits.
• The company’s ownership of the 1, 700-mile Kern River natural gas pipeline is a key strategic asset in this region. In 2025, this pipeline was identified as having the potential to be repurposed for transporting liquid CO 2, which could significantly reduce the cost and logistical barriers for a regional CCUS network connecting capture sites to sequestration hubs.
• While the EU is advancing its own carbon capture framework, the combination of policy support and established infrastructure in the U.S. provides a more mature market for near-term deployment, validating BHE‘s domestic focus.

Technology Maturity: Berkshire Hathaway Energy’s Follower Strategy in Post-Combustion Capture

Berkshire Hathaway Energy is positioned as a technology follower in the CCUS market, a strategy that allows it to avoid the high costs and risks of early-stage technology development. The company’s 2025 activities show it is observing the commercialization of third-party technologies, particularly post-combustion capture systems suitable for retrofitting its existing coal and natural gas fleet. It is waiting for solutions to reach a higher Technology Readiness Level (TRL) and a lower Levelized Cost of Capture (LCOC) before making a major investment.

• Between 2021 and 2024, much of the industry focus was on pilot-scale projects and developing novel capture solvents. In 2025, the market saw early commercial deployments, such as Babcock & Wilcox‘s agreement to supply its Solve Bright solvent-based system, designed to capture over 550, 000 tonnes of CO 2 annually.
• The high cost and energy penalty of capture technology, which can account for up to 80% of a total CCS project’s cost, remains the primary barrier to widespread adoption. BHE‘s cautious approach allows it to benefit from the cost reductions and efficiency gains made by first-movers and technology developers.
• While Direct Air Capture (DAC) technology advanced in 2025 with projects like Occidental‘s Stratos facility, its high cost ($400-$1, 500/tonne) makes it less viable for BHE‘s immediate need to decarbonize large point sources. The company’s focus remains on more mature post-combustion technologies.

SWOT Analysis: Berkshire Hathaway Energy’s CCUS Position in a Volatile Market

Berkshire Hathaway Energy’s position in the 2025 CCUS market is a balance of immense latent strength and significant external risks. The company’s vast infrastructure and capital resources are offset by a volatile policy environment and the high cost of current technologies. Its strategy of cautious evaluation is a direct reflection of this dynamic, prioritizing risk management over speed of deployment.

• The primary strength for BHE is its ownership of both large-scale emission sources (power plants) and potential transport infrastructure (pipelines), creating a vertically integrated foundation for future projects.
• The most significant weakness remains the carbon intensity of its generation fleet, which exposes it to increasing regulatory and shareholder pressure.
• The opportunity lies in leveraging its scale to become a market-making force once it decides to invest, potentially driving down costs and establishing a dominant regional CCUS network.
• The primary threat is policy instability, as demonstrated by the 2025 DOE funding cancellations, which could undermine the economic case for projects reliant on government incentives.

BHE Power Mix Still 53% Fossil Fuels

This chart provides a critical data point for Berkshire Hathaway Energy’s SWOT analysis. The company’s heavy reliance on fossil fuels is a fundamental Weakness (exposure to carbon pricing/regulation) and also presents an Opportunity (a large base of assets where CCUS could be deployed).

(Source: The Rational Walk)

Table: SWOT Analysis for Berkshire Hathaway Energy’s CCUS Strategy

Scenario Modelling: Berkshire Hathaway Energy’s 2026 CCUS Path Hinges on Pacifi Corp’s IRP

The single most critical signal for Berkshire Hathaway Energy‘s carbon capture strategy in the next 12-18 months will be the final portfolio and recommendations from Pacifi Corp‘s 2025 Integrated Resource Plan. A decision to move forward with a CCS retrofit pilot would mark a significant strategic pivot from evaluation to execution. Conversely, a decision to defer or reject CCS options would signal that the technology and policy risks still outweigh the benefits in BHE‘s view, cementing its observational stance.

• If Pacifi Corp’s IRP recommends a CCUS project, watch for a Request for Proposal (RFP) for engineering studies or technology supply in early 2026. This would indicate a firm commitment and initiate the partner selection process.
• The finalization of the carbon dioxide removal offtake agreement, which was in late-stage negotiations at year-end 2025, should be monitored. The identity of the counterparty and the terms of the deal will reveal BHE‘s preferred approach to engaging with the voluntary and compliance carbon markets.
• Watch for the publication of the first annual report quantifying the costs and benefits of BHE‘s voluntary climate expenditures. This report, prompted by a shareholder proposal, could provide unprecedented insight into the company’s internal financial case for or against large-scale CCUS investment.

Forecasts Project Major Electricity Demand Growth

The section discusses scenario modeling based on PacifiCorp’s Integrated Resource Plan (IRP). This chart, which forecasts electricity demand growth, represents a primary input and key driver for any IRP, directly justifying the need for the scenario planning mentioned in the heading.

(Source: ClearPath)

The questions your competitors are already asking

This report covers one angle of Berkshire Hathaway Energy’s cautious entry into the carbon capture market. The questions that matter most depend on your work.

• Which companies are gaining ground in the utility-scale CCUS market, and where does Berkshire Hathaway Energy’s cautious strategy position them?
• What is the status of PacifiCorp’s 2025 Integrated Resource Plan and its modeling for CCUS retrofits?
• What is the outlook for CCUS deployment in the US power sector, considering high capital costs and recent DOE project cancellations?

This report does not answer these. Enki Brief Pro does.

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