ByPramod Jain
DIGITAL JOURNAL
December 17, 2025

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Pramod Jain is a thought leader in Digital Journal’s Insight Forum (become a member).
If you were asked to put 1 million tonnes of CO₂ into the ground every year for the next few decades, how confident would you be that you understand what will happen to it?
If you had to insure that storage, would you be comfortable signing the policy?
If you were financing the project, would you be satisfied that the risk is priced properly?
If you were the operator, would you be ready to explain your confidence to a regulator, an insurer, and a board?
These questions once belonged to a small group of technical reviewers. Today, they sit at the centre of decisions being made by regulators, insurers, lenders, commercial partners, and operators involved in carbon capture and storage (CCS).
CCS is drawing attention because the energy transition conversation is everywhere, and more companies are preparing to return significant volumes of CO₂ to the subsurface instead of releasing it into the atmosphere.
To do that, carbon dioxide must be transported, injected underground into the right geological formation, and stored in a way that keeps it contained for decades. And because it’s underground, none of it can be observed directly, which introduces challenges.
Once CO₂ is injected, it moves through porous rock, changes state under pressure, and interacts with the reservoir in ways that depend on geology.
The only practical way to understand that behaviour is through modelling.
A turning point for evidence in CCS
CMG has been modelling subsurface behaviour since 1978, drawing on decades of injection work across oil and gas, geothermal projects, and other subsurface disciplines. The physics are not new, but the expectations around the evidence are.
Storage decisions have become simultaneous and multi-institutional, bringing insurers, lenders, regulators, and commercial partners, each assessing the same evidence through a different lens.
As more institutions participate in CCS, the expectations placed on modelling have expanded and become more specific. Simulation has always been essential, but more institutions now depend on it, and the consequences of their decisions are larger than before.
Storage projects also differ widely in their geology, operating plans, and injection rates, which means the model must reflect the specific conditions of each reservoir rather than a generic template. This shift is happening as activity accelerates.
The Global CCS Institute reports there are now 77 operating CCS facilities globally, with 47 in construction, and 610 in development. That brings the total pipeline to 734 projects.
More proposals mean more decisions. More decisions mean more scrutiny. And more scrutiny means higher expectations for the quality, transparency, and discipline behind the model.
A simple but meaningful reality is taking shape: subsurface modelling has now become the confidence infrastructure of CCS.
It’s evolving into the foundation on which regulatory approval, financial risk, commercial agreements, and insurance coverage are based.
Other sectors rely on audited financial statements and system-wide stress tests to support decisions made by institutions with different mandates. In CCS, the subsurface model increasingly plays this role.
The companies that understand this shift, and that build evidence systems strong enough to support it, will gain an unfair advantage as hundreds of CCS projects move into construction.
What this shift requires from companies
The next phase of CCS will be defined not only by how well operators model the subsurface, but by how effectively they build trust in the evidence that surrounds it.
This change requires different choices than the sector has made in the past.
1) Companies need to align modelling with insurability, not just permitting
Permitting focuses on whether storage is safe and stays contained.
Insurers look at financial risks, including the chance that storage might not meet its expected performance. For example, injecting less CO₂ than planned, failing to store the required volume, or losing credits if the storage fails to meet regulatory conditions.
A subsurface model can’t guarantee outcomes, but it can clarify the conditions under which those outcomes become more or less likely.
Companies that present this evidence clearly, and that map their risk register to the exposures insurers actually underwrite, will negotiate better terms and face fewer delays.
2) Companies need to understand and model the risks that come from how capture, transport, and storage systems interact
CCS hubs and clusters introduce new dependencies between capture, transport, and storage.
CO₂ does not behave the same way coming out of every facility, and variations in impurities, temperature, and pressure can affect both surface equipment and reservoir performance.
Simulation can’t eliminate that risk, but it can show how sensitive the system is to specific conditions and where flexibility exists.
This helps companies design stronger commercial agreements, clarify responsibilities between partners, and avoid operational disputes that erode trust.
2) Companies need to treat the model as a living governance asset, not a static report
With simulation, early models establish a baseline understanding, but real confidence comes from what happens after injection begins.
Operating data will strengthen or challenge assumptions, narrow uncertainty, and improve decisions over time.
Companies that show how they will update evidence and refine uncertainty build credibility with regulators, insurers, and lenders who reassess risk across the project life.
Simulation does not replace monitoring or engineering judgement — it provides a disciplined way to integrate learning into decisions that carry financial and regulatory consequences.
These three capabilities don’t ask companies to do more modelling. They ask them to treat modelling differently.
Simulation does not remove all risk, but it clarifies it. It doesn’t eliminate uncertainty, but it shows where uncertainty matters and where it does not. And it can’t guarantee performance, but it can establish a shared basis for decisions among institutions that evaluate the same project through different lenses.
Companies that understand this will be the ones that move faster, because they can demonstrate something the market increasingly values when certainty is not possible — well-founded confidence.
What trusted evidence looks like in CCS, and what’s next
The companies that advance storage fastest will be those that produce evidence others can trust. That requires clarity about reservoir behaviour across the range of conditions that matter.
Good subsurface modelling and simulation reflects the physics that govern how CO₂ moves, how pressure evolves, and how operating conditions influence stability. It incorporates geomechanics, caprock integrity considerations, pressure buildup, and fluid interactions where they play a meaningful role. These risks can’t be evaluated without physics-based modelling.
Trusted evidence also requires clear assumptions, transparent methods, and uncertainty expressed through probability ranges rather than single forecasts. Reviewers need to understand what the model predicts, and also why it predicts it, how sensitive outcomes are to different conditions, and which uncertainties matter most.
As projects move from construction into operation, data refines the model. The ability to update the evidence and narrow uncertainty is essential for maintaining confidence, and regulators, insurers, and lenders increasingly expect this discipline.
Evidence quality will increasingly determine which projects reach major commitments and which ones stall.
As storage becomes a more visible part of decarbonization strategies, the expectations placed on modelling will continue to rise. The companies that recognize this moment, and that treat modelling as confidence infrastructure rather than a technical formality will be in the strongest position to advance projects, secure capital, and build trusted partnerships.
Trusted evidence, not technical novelty, will determine which projects advance. Companies that deliver it will shape the future of CCS and build momentum as the energy transition accelerates.

Written ByPramod Jain
Pramod Jain is a software executive and professional engineer with over 15 years of international leadership experience focused on corporate growth and innovation. Joining CMG as CEO in 2022, he brings a strategic mind and proven track record of successfully building strong, customer-focused global B2B product organizations. Pramod has a unique ability to calibrate technology corporations for growth through effective leadership, innovation, and communications. Pramod holds a Master of Science Degree in Industrial Engineering from Mississippi State University, a Bachelor of Technology, Electrical and Electronics Engineering Degree from Kurukshetra University, in India and a diploma in Corporate Finance from INSEAD in France. Pramod is a member of Digital Journal's Insight Forum.
