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Enhancing carbon emission mitigation and carbon utilization have become necessary for the world to respond to climate change caused by the increase of greenhouse gas concentrations. As a result, carbon capture, utilization, and storage (CCUS) technologies have attracted considerable attention worldwide, especially in China, which plans to achieve a carbon peak before 2030 and carbon neutrality before 2060. This paper proposed six priorities for China, the current world’s largest carbon emitter, to achieve its dual carbon strategy in the green energy transition process. We analyzed and summarized the challenges and potentialities of conventional carbon utilization (CU), carbon capture utilization (CCU), and CCUS. Based on the current development trend, carbon dioxide capture, circular utilization, and storage (CCCUS) technology that integrates carbon <i>circular</i> utilization and partial sequestration, with large-scale underground energy storage were proposed, namely biomethanation. Technically and economically, biomethanation was believed to have an essential contribution to China’s renewable energy utilization and storage, as well as the carbon circular economy. The preliminary investigation reveals significant potential, with a corresponding carbon storage capacity of 5.94 × 10⁸ t~7.98 × 10⁸ t and energy storage of 3.29 × 10¹² kWh~4.42 × 10¹² kWh. Therefore, we believe that in addition to vigorously developing classical CCUS technology, technical research and pilot projects of CCCUS technology that combined large-scale underground energy storage also need to be carried out to complete the technical reserve and the dual-carbon target.