Tenaris CCUS Strategy: $85 M Upgrade, a Total Energies Deal, and Supplying a $14.5 B Market (2021-2025)

Tenaris CCUS Projects: An Infrastructure-First Strategy for a $14.5 B Market

In 2025, Tenaris S.A. solidified its strategy to act as a primary infrastructure supplier for the carbon capture, utilization, and storage (CCUS) market, positioning itself to capitalize on market growth without taking on the risks of developing capture technology. The company is leveraging its core competency in producing high-specification pipes and coatings to supply the foundational components required for transporting CO₂ and hydrogen, effectively becoming an enabler for the entire decarbonization value chain.

Tenaris’s “Picks and Shovels” Approach

This approach prioritizes supplying essential hardware to a growing roster of CCUS project developers. Unlike technology-focused firms such as SLB or project operators like Occidental Petroleum, Tenaris mitigates direct technological and operational risks associated with capture facilities. Instead, it focuses on a segment with proven demand and clear technical specifications.

• The company’s 2025 Sustainability Statement integrates its decarbonization services directly into its core industrial strategy, framing the energy transition as a commercial opportunity rather than a compliance burden.
• This strategic pivot is timed with significant market forecasts, including one projecting the CCUS market to expand from $4.51 billion in 2025 to $14.51 billion by 2032, which creates substantial demand for transport infrastructure.
• In October 2025, Tenaris launched its Tenaris Shawcor White Jacket™ coating, a product specifically designed for the severe conditions of underground CO₂ pipelines, directly addressing a critical need for safe and reliable CCUS project deployment.

Global Carbon Capture Market to Skyrocket 10x by 2035
The Global Carbon Capture, Utilization, and Storage (CCUS) market is forecasted for explosive growth, expanding over tenfold from $6.74 billion in 2025 to $75.92 billion by 2035, driven by a robust 27.4% CAGR. Carbon Capture remains the primary revenue driver, comprising the largest segment throughout this period.

Decarbonization Pressures Fueling a Multibillion-Dollar CCUS Boom
This dramatic market expansion signals the critical role of CCUS in global decarbonization efforts, presenting a multi-billion-dollar investment opportunity. The consistent leadership of the ‘Capture” segment indicates a primary focus on scaling core capture technologies, potentially creating supply chain constraints for specialized infrastructure and services in the near term.

(Source: EVOLVANCE MARKET RESEARCH — via Carbon Capture And Storage Market Size | CAGR of 10.6%)

$85 M Investment, Tenaris Facility Upgrades for Emission Reduction

Tenaris backed its market-facing strategy with significant capital allocation toward internal decarbonization and operational enhancements in 2025. These investments serve a dual purpose: they reduce the company’s own carbon footprint in line with sustainability goals and regulatory pressures, while also modernizing its facilities to produce the advanced materials required by the energy transition market.

The $85 Million Exhaust System Upgrade

This project represents a tangible commitment to improving the environmental performance of its manufacturing processes. The upgrade is a key part of the company’s broader effort to align its industrial operations with its sustainability objectives.

• In September 2025, Tenaris announced the completion of an $85 million USD upgrade to an exhaust system at one of its plants, which included a new baghouse and quench tower to reduce particulate emissions.
• Separately, the application of existing Consteel® process technology at its operations in Argentina is already delivering a reduction of 56, 000 tons of CO₂ emissions annually by improving energy efficiency in the steel preheating stage.
• These capital expenditures signal a focus on projects with direct, measurable environmental benefits, reinforcing the company’s credibility as a sustainable supplier to the low-carbon economy.

Table: Tenaris Capital Investments and Emission Reduction Projects (2025)

Partnership Analysis, Tenaris Supplying Total Energies’ Gran Morgu Project

Tenaris continues to secure and execute large-scale supply contracts with major energy companies, demonstrating the trust and technical capability that are directly transferable to the CCUS sector. These agreements validate its capacity to manage complex logistical and manufacturing requirements for critical energy infrastructure projects, positioning it as a reliable partner for future CCUS builds.

Demonstrating Large-Scale Project Capability

The contract with Total Energies serves as a key reference point for Tenaris‘s ability to deliver high-volume, high-specification products for demanding offshore environments. This is precisely the expertise required for constructing CO₂ transport and injection infrastructure.

• On July 24, 2025, it was announced that Tenaris will supply approximately 47, 000 tons of casing and tubing for the Total Energies Gran Morgu project offshore Suriname.
• This partnership showcases Tenaris‘s role as a key supplier within the supply chains of global energy majors, a relationship it can leverage as these same customers, such as BP and Saudi Aramco, expand their CCUS portfolios.
• The logistical complexity of delivering such large orders, highlighted by another project in 2025 involving 175, 000 tons of pipes, confirms the company’s operational readiness for the scale of infrastructure required by a global CCUS build-out.

Table: Key Tenaris Supply Agreements and Partnerships (2025)

EU vs. Americas, Tenaris Geographic Strategy Under ETS Regulations

Tenaris is navigating a global market shaped by distinct regional regulatory frameworks, tailoring its strategy to capitalize on policy-driven demand in areas like Europe while serving resource-driven projects in the Americas. This geographic diversification allows the company to capture opportunities arising from different market drivers, from compliance obligations to strategic resource development.

Adapting to Regional Decarbonization Policies

The company explicitly acknowledges the influence of cap-and-trade systems on its business environment. These policies create both challenges for its own emissions and opportunities by stimulating demand for the decarbonization infrastructure it supplies.

• In its 2025 half-year report, Tenaris identified the EU Emissions Trading System (ETS) as a significant factor shaping its business, driving demand for low-carbon solutions and CCUS-enabling infrastructure within Europe.
• Simultaneously, the company’s activities in the Americas, such as its use of Consteel® technology in Argentina and its major supply contract for the Suriname project, highlight its continued presence in key energy production regions.
• This dual focus positions Tenaris to serve both mature, regulation-heavy markets and growing, resource-focused markets as the global energy transition progresses.

Tenaris Technology Maturity: Commercial Scale Coatings for CO₂ Pipelines

The company’s technology strategy for the CCUS market is focused on commercially mature, value-added products that solve immediate infrastructure challenges, rather than on research-stage capture technologies. The 2025 launch of a specialized coating for CO₂ pipelines is a clear validation of this approach, demonstrating a focus on de-risked, market-ready solutions.

• The Tenaris Shawcor White Jacket™, launched in October 2025, is a commercial-grade product, not a pilot. It is designed for the specific technical demands of CO₂ transport, including durability in severe underground conditions.
• By focusing on enabling technologies like advanced coatings and high-strength pipes, Tenaris avoids the long development cycles and high capital costs associated with new capture methods, such as those being pursued by competitors.
• This strategy leverages the company’s existing industrial strengths in metallurgy and manufacturing, allowing it to move quickly and secure a critical role in the CCUS supply chain with proven, reliable products.

SWOT Analysis, Tenaris’s Execution Strengths and Market Risks

The strategic position of Tenaris in 2025 is defined by its strong manufacturing capabilities and established market access, which are offset by its dependency on the investment decisions of other companies in the CCUS value chain. Its core strength lies in its ability to execute as an industrial supplier, while its primary risk is tied to the pace of broader market development.

Table: SWOT Analysis for Tenaris CCUS Initiatives

Scenario Modelling, Tenaris’s Role as an Enabler for CCUS Growth

The primary signal to watch for Tenaris is the conversion of major CCUS hub announcements into firm orders for its specialized pipe and coating products. If large-scale CCUS projects in North America and Europe secure financing and final investment decisions in the coming 12-24 months, Tenaris’s order book will be a leading indicator of real-world infrastructure deployment, validating its role as a critical enabler of the carbon management economy.

• If this happens: Major energy and industrial companies accelerate their CCUS project timelines in response to policy incentives like the EU ETS and the US 45 Q tax credit.
• Watch this: Tenaris’s quarterly reports for an increase in orders specifically mentioning low-carbon applications, hydrogen readiness, or CO₂ transport specifications. New supply agreements with CCUS hub developers like Next Era or industrial partners would be a strong positive signal.
• These could be happening: Tenaris may announce further capital investments in its production lines to handle more exotic materials or larger diameter pipes required for continent-scale CO₂ networks. The company’s CVC arm, via parent Techint Group, could also make strategic investments in complementary technologies like pipeline monitoring or leak detection to create a more integrated service offering.

The questions your competitors are already asking

This report covers one angle of Tenaris’s commercial strategy for carbon capture. The questions that matter most depend on your work.

• carbon capture pipe and steel suppliers
• technical challenges for carbon dioxide pipelines
• new carbon capture pipeline projects North America Europe
• major carbon capture hub developers US and EU

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