Tenaris CCUS Strategy, $239 M Decarbonization Investment, Axpo Deal, and 2 Project Announcements (2024 to 2026)

Tenaris CCUS Commercial Projects Signal Shift to Enabler Role

In 2025, Tenaris S.A. solidified its strategy to function as a critical infrastructure supplier for the Carbon Capture, Utilization, and Storage (CCUS) market rather than a direct operator. This “picks and shovels” approach leverages its core competency in high-specification steel pipe manufacturing to supply the foundational components for CO 2 transportation and injection, capitalizing on market growth without direct exposure to geological and operational risks of capture projects.

• Between 2021 and 2024, Tenaris laid the groundwork by focusing on internal decarbonization, such as initiating a green hydrogen trial at its Dalmine plant in August 2024. This period centered on building operational efficiency and reducing its own carbon footprint.
• Starting in 2025, the strategy visibly shifted toward external market engagement. The company’s participation in Carbon Capture Europe 2025 showcased its specialized tubular products, directly targeting developers of large-scale CCUS hubs and positioning itself as an essential technology enabler.
• The company’s focus on products for low-carbon applications, including corrosion-resistant pipes for CO 2, became a central part of its public messaging in 2025, as stated in its half-year and annual reports. This contrasts with the earlier period’s more inwardly focused sustainability efforts.
• In May 2026, Tenaris announced an expansion of tubular product production, a move designed to meet rising demand from industrial markets, including the burgeoning CCUS sector, which is projected to exceed $17 billion by 2030.

CCUS Market Valued at $3.5B in 2026

This chart establishes the near-term market size for Carbon Capture, Utilization, and Storage (CCUS), providing essential context for Tenaris’s shift to an enabler role through its new commercial projects.

(Source: Persistence Market Research)

$239 M in 2025 Cap Ex, Tenaris Focuses on Decarbonization

Tenaris committed significant capital to its internal decarbonization efforts, viewing these investments as crucial for maintaining its social license to operate and strengthening its credibility as a supplier to the low-carbon energy sector. This dual approach of cleaning its own operations while supplying the energy transition is underpinned by strong financial performance, which provides the necessary resources for long-term, capital-intensive sustainability projects.

• In 2025, Tenaris allocated $239 million to environmental and decarbonization projects, representing a substantial 30% of its total capital expenditure for the year. This investment directly supports its goal to reduce CO 2 intensity by 30% by 2030.
• The company’s robust financial health, demonstrated by a reported $2.9 billion EBITDA in 2025, enables these large-scale investments while also supporting shareholder returns, such as the planned $0.6 billion dividend payment in May 2026.
• A key investment in 2025 was the completion of an $85 million exhaust system upgrade at a major facility, a direct action to reduce atmospheric emissions from its manufacturing processes.

Tenaris Profitability Reaches Multi-Year Highs

This chart showing Tenaris’s high profitability provides the financial context for how the company can afford a significant $239 million capital expenditure focused on decarbonization.

(Source: Freedom24)

Table: Tenaris Strategic Investments and Financials

Tenaris Financial Performance and Analyst Forecasts

This chart directly visualizes the financial data and forecasts that would be summarized in a table covering Tenaris’s strategic investments and overall financial health.

(Source: Simply Wall St)

Partnership Analysis, Tenaris Deepens Ties with Axpo Italia

Tenaris‘s partnership strategy focuses on securing green energy to decarbonize its operations and engaging with the CCUS industry to position itself as a premier supplier. These collaborations are not aimed at developing new carbon capture technologies but at reinforcing its role within the low-carbon value chain, both as a consumer of renewable energy and a provider of essential infrastructure.

• The agreement with Axpo Italia in October 2024 for 15 GWh of annual green energy supply is a key move to lower Scope 2 emissions at its Dalmine mill, directly supporting its 2030 decarbonization target.
• Participation in industry conferences like Carbon Capture Europe 2025 functions as a strategic commercial activity, allowing Tenaris to engage directly with project developers and showcase its specialized pipe solutions for CO 2 transport.
• The company’s ongoing operational support for approximately 90 rigs per month in the UAE, while not exclusively for CCUS, demonstrates its capacity for managing complex, large-scale energy projects, a capability directly transferable to the emerging CCUS infrastructure build-out.

Table: Tenaris Key Commercial Agreements and Projects

Europe and North America, Tenaris Targets Policy-Driven Markets

Tenaris‘s geographic focus aligns with regions that have strong policy support and a growing pipeline of CCUS projects, primarily North America and Europe. The company’s strategy is to leverage its global manufacturing footprint to serve these key markets where government incentives, such as the U.S. 45 Q tax credit and the EU’s carbon pricing mechanisms, are accelerating investment in decarbonization infrastructure.

• In Europe, the 2024 green energy agreement with Axpo Italia for its Dalmine mill and the green hydrogen trial highlight a focus on decarbonizing its European manufacturing base, which is subject to regulations like the EU’s Carbon Border Adjustment Mechanism (CBAM).
• The company’s participation in European industry events, like Carbon Capture Europe 2025, signals a direct effort to capture market share in the continent’s rapidly expanding CCUS sector, which is forecast to be the fastest-growing regional market.
• In North America, the significant build-out of over 270 announced CCUS projects, driven by the Inflation Reduction Act, represents a primary target market for Tenaris‘s high-specification tubular products for CO 2 transport and injection wells.
• Activity in the Middle East, evidenced by the extensive operational support in the UAE, positions Tenaris within another critical region where national oil companies are investing heavily in CCUS to decarbonize their operations.

Tenaris Technology at Commercial Scale for CCUS Enablement

Tenaris‘s technology is mature and at a commercial scale, but its innovation is directed at enhancing existing products for new energy applications rather than developing novel carbon capture methods. The company’s strategy relies on its proven expertise in metallurgy and pipe manufacturing, adapting its core competencies to meet the specific technical challenges of transporting and storing CO 2 and hydrogen.

• From 2021 to 2024, the primary technological focus was on internal process improvement. The use of Electric Arc Furnaces (EAFs), which are less carbon-intensive than traditional methods, and a pilot project to test green hydrogen as a fuel source in 2024 were key initiatives.
• Beginning in 2025, the emphasis shifted to marketing its product portfolio for external low-carbon applications. The company highlighted its specialized tubular solutions designed to handle the corrosive nature of CO 2 and the high pressures of injection, leveraging decades of experience from the oil and gas sector.
• The implementation of an automated varnishing line using water-based coatings in June 2025 at its Tenaris SPIJ facility demonstrates a continued investment in cleaner production technologies to reduce its own operational emissions.
• While not a carbon capture technology itself, the company’s investment in digital systems for pipe-by-pipe tracking provides critical quality assurance and traceability required for the long-term integrity and safety of CCUS infrastructure projects.

Tenaris SWOT Analysis for CCUS Market Position

The strategic analysis of Tenaris reveals a company leveraging its established industrial strengths to pivot into the high-growth CCUS market as a key enabler. Its primary challenge lies in navigating the long project development cycles and policy uncertainties inherent in this emerging sector, while its opportunity is tied directly to the global infrastructure build-out for decarbonization.

• Strengths: Deep manufacturing expertise and a global supply chain provide a competitive advantage in producing specialized pipes for CO 2 transport.
• Weaknesses: The company’s business is indirectly exposed to the success and timeline of large, complex CCUS projects developed by third parties.
• Opportunities: The global push for decarbonization, backed by substantial government incentives, creates a massive and growing market for the essential infrastructure that Tenaris provides.
• Threats: Potential delays in CCUS project deployments or shifts in government policy could slow demand for its specialized products.

Table: SWOT Analysis for Tenaris in the CCUS Market

Tenaris CCUS Scenario: Watch for Major Project Contracts

If Tenaris successfully converts its market engagement into firm supply contracts for one or more major CCUS hubs in North America or Europe by mid-2027, it will validate its strategy as a critical enabler of the energy transition. The key signal to watch is the announcement of a multi-year agreement to supply specialized pipes for a large-scale CO 2 pipeline or injection project.

• If this happens, watch for an increase in the company’s forward-looking revenue guidance specifically attributed to its low-carbon application portfolio. This would confirm the commercial viability of its pivot.
• These events could be happening: Tenaris is likely in advanced discussions with developers of major CCUS projects announced in the wake of the Inflation Reduction Act. The company’s participation in key 2025 conferences was a clear precursor to targeted commercial negotiations.
• A leading indicator will be any new qualifications or certifications of its pipe and connection technologies for high-pressure CO 2 service, which would signal readiness to meet the technical demands of specific large-scale projects.
• A counter-indicator would be a lack of major contract announcements by 2027, coupled with a leveling off of Cap Ex dedicated to decarbonization, which might suggest that the CCUS market is developing slower than anticipated.

CCUS Market to Reach $22 Billion by 2033

This chart’s long-term forecast for a high-value CCUS market provides the big-picture justification for the article’s scenario to watch for major project contracts.

(Source: Persistence Market Research)

The questions your competitors are already asking

This report covers one angle of Tenaris’s commercial trajectory in the CCUS market. The questions that matter most depend on your work.

• Which companies are gaining or losing ground in the CCUS tubular products market?
• What is the outlook for CO2 pipeline deployment in industrial hubs by 2030?
• Which CCUS hub operators are adopting Tenaris’s specialized tubular products?
• Tenaris investments and funding. Is the $239 M decarbonization plan on track to support its CCUS supplier strategy?

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

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

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