News Release

Class VI comeback: Applications rebound in Q2

Primacy shift could slash EPA review backlog by 30% as Texas and Arizona near approval

byEnverus
August 26, 2025

CALGARY, Alberta (Aug. 26, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has published the latest installment in its quarterly report series tracking developments in U.S. carbon capture and sequestration (CCS) initiatives. This new report marks a noticeable change from last quarter in the addition of Class VI wells associated with CCS project in the U.S., while also including permit applications, changes to permit status, permit approvals and newly disclosed project details.

“The second quarter of 2025 saw a rebound in Class VI applications following a slow start to the year. Eleven new applications were received, above the two-year quarterly average of nine and up from just four in 1Q25,” said Brad Johnston, an EIR analyst.

“The quarter also saw momentum for Class VI primacy, with both Arizona and Texas receiving proposed approvals from the EPA, and we expect both states to be granted full approval in the coming months,” added Johnston. “Granting the Texas Railroad Commission Class VI permitting authority will remove 18 permits from the EPA backlog, decreasing its review burden by nearly 30%.”

Key takeaways from the report:

  • Class VI permit applications increased to 11 in 2Q25 from a three-year low of four in the previous quarter.
  • OXY’s Brown Pelican permit, linked to its Stratos direct air capture project, secured the only Class VI approval in 2Q25.
  • Arizona and Texas are likely to gain Class VI primacy in the coming months after the Environmental Protection Agency proposed approval in the quarter.
  • Eight Class VI permits are at risk due to a CCS ban below the sole source Mahomet Aquifer in central Illinois and cuts in Department of Energy funding.
  • EIR projects 12 applications could be approved this year, representing 34 mtpa of injection from 37 wells, up from five approvals and 32 mtpa in 2024.

EIR’s analysis pulls from a variety of products including Enverus Foundations® – Carbon Innovation Wells.

Enverus-Intelligence-Research-Class-VI-Applications-by-Quarter

You must be an Enverus Intelligence® subscriber to access this report.

About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

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