Business model innovations for carbon capture and utilization

Carbon capture and utilization (CCU) has been recognized as an important pathway toward mitigating climate change, but research on this topic has been heavily technology-oriented. Hence, this study aims to build understanding of CCU from a business perspective by a) exploring and conceptualizing the types of business model innovations (BMIs) employed by companies to harness CCU and b) analyzing what factors drive and determine economic value capture of these BMIs. We conducted a qualitative thematic analysis from a multiple-case study with nine industrial companies supported by a document analysis. Our results display 12 distinct CCU BMIs across carbon dioxide processing, engineering, and system optimization business domains and 17 value capture determinants grouped under four drivers, namely, policy and regulation, technology, markets and demand, and business compatibility. This study integrates carbon circulation into the circular business model and innovation management literature and strengthens the business angle of CCU research.