EPA’s Class VI Backlog Is Now the Market Signal
Federal Class VI permitting delays are now shaping which carbon storage projects move first and where capital flows.
Updated
What is this trend?
EPA’s slow Class VI well permitting has become the main bottleneck in carbon storage, making approval timing a competitive advantage for projects and vendors.
- 142 wells across 44 projects were waiting on EPA review; only 13 were operating under permits.
- Permitting delays now stretch from the EPA’s two-year target to three- to six-year timelines.
- Colorado primacy gives projects a faster route around the federal queue.
- Storage sites with pre-permits, primacy exposure, or strong permitting teams gain the edge.
- Value is shifting toward subsurface characterization, permitting support, and compliance services.
What’s the latest?
As of September 2026, 142 Class VI CO2 storage wells across 44 projects were stuck in EPA review, while only 13 wells were operating under EPA-issued permits.
How it developed
- Storage rights, regulated CCS markets, and permitting control reshape project winners
- State Primacy Turns Storage Permitting Into a Competitive Advantage