Deep dive: Carbon capture, utilization & storage (CCUS) — what's working, what's not, and what's next

By 2025, Europe's operational CCUS capacity reached approximately 10 million tonnes of CO₂ per year—a figure that sounds impressive until you realize it represents less than 0.3% of the continent's annual emissions. The gap between ambition and deployment remains staggering: the International Energy Agency estimates that achieving net-zero by 2050 requires global CCUS capacity to reach 1.2 gigatonnes annually, roughly a 100-fold increase from current levels. For European engineers and sustainability professionals, this presents both an unprecedented challenge and a generational opportunity. This deep dive examines what's actually working in CCUS deployment, what continues to fail, and where the technology is headed—with particular attention to the often-overlooked dimensions of duration, degradation, revenue stacking, and grid integration.

Why It Matters

Carbon capture, utilization, and storage has transitioned from a theoretical decarbonization pathway to an operational necessity for Europe's climate goals. The European Commission's 2024 Industrial Carbon Management Strategy set a target of capturing 280 million tonnes of CO₂ annually by 2040, with storage capacity of at least 50 million tonnes per year by 2030. These targets acknowledge an uncomfortable truth: renewable energy deployment alone cannot decarbonize hard-to-abate sectors like cement, steel, and chemicals, which collectively account for roughly 20% of European industrial emissions.

The economics shifted meaningfully in 2024-2025. EU Emissions Trading System (ETS) carbon prices stabilized above €80 per tonne, crossing the threshold where certain CCUS applications become commercially viable without additional subsidies. Simultaneously, the EU Innovation Fund allocated €3.6 billion specifically for CCUS projects through 2025, while the Net-Zero Industry Act designated carbon capture as a strategic technology warranting accelerated permitting.

Yet the deployment gap persists. As of early 2025, only 13 large-scale CCUS facilities operate across Europe, compared to over 40 in North America. Norway's Sleipner project, operational since 1996, still represents the continent's most mature storage operation. The Northern Lights project—a joint venture between Equinor, Shell, and TotalEnergies—began commercial operations in late 2024, becoming Europe's first open-access CO₂ transport and storage infrastructure. This shift toward shared infrastructure marks a fundamental change in how the industry approaches scale.

The stakes extend beyond emissions accounting. CCUS infrastructure creates path dependencies that will shape European industrial geography for decades. Regions that develop storage capacity and transport networks—the North Sea basin, the Baltic, and the Mediterranean—will attract carbon-intensive industries seeking to decarbonize without relocating. Regions that don't risk industrial decline as carbon border adjustment mechanisms tighten.

Key Concepts

CCUS (Carbon Capture, Utilization, and Storage) encompasses the integrated chain of technologies for capturing CO₂ from point sources or the atmosphere, transporting it, and either utilizing it in products or permanently storing it in geological formations. Post-combustion capture, pre-combustion capture, and oxyfuel combustion represent the three primary capture pathways, each with distinct energy penalties ranging from 15-30% of a facility's output. Direct Air Capture (DAC) operates at significantly higher energy intensity but enables negative emissions regardless of point-source availability.

PPA (Power Purchase Agreement) structures have become critical for CCUS project finance, particularly for energy-intensive capture operations. Long-term PPAs with renewable generators allow capture facilities to lock in electricity costs—often their largest OPEX component—while claiming low-carbon credentials. In Europe, corporate PPAs for CCUS operations increasingly require additionality proof, demonstrating that the renewable capacity would not have been built without the offtake agreement.

Grid Reliability intersects with CCUS through the significant parasitic load that capture equipment imposes on industrial facilities. A typical amine-based capture system requires 2.5-4.0 GJ of thermal energy per tonne of CO₂ captured, plus substantial electrical demand for compression. This creates complex grid integration challenges, particularly in regions with high renewable penetration where supply variability affects capture economics.

DER (Distributed Energy Resources) offer emerging solutions to CCUS grid integration challenges. On-site solar, battery storage, and waste heat recovery can reduce grid dependence and smooth operational costs. Several European CCUS projects now integrate DER systems, particularly in Scandinavia where industrial sites have access to hydropower flexibility.

OPEX (Operational Expenditure) dominates CCUS economics over the 20-30 year project lifetimes. While capture equipment CAPEX receives policy attention, operational costs—energy consumption, solvent degradation and replacement, maintenance, and CO₂ transport fees—determine long-term viability. Current estimates place European CCUS OPEX between €40-100 per tonne depending on capture technology and CO₂ purity requirements.

What's Working and What Isn't

What's Working

Shared transport and storage infrastructure is finally materializing. The Northern Lights project's 2024 commercial launch established proof-of-concept for open-access CCUS infrastructure in Europe. Operating from a terminal in Øygarden, Norway, the facility receives liquefied CO₂ from industrial emitters across Europe by ship, then pipes it to offshore storage in the Johansen formation. This model—separating capture from transport and storage—allows smaller emitters to access CCUS without financing entire value chains. By early 2025, Northern Lights had signed offtake agreements totaling 1.5 million tonnes annually from customers in Germany, Netherlands, Belgium, and the UK.

Industrial cluster approaches are demonstrating cost efficiencies. The Porthos project in Rotterdam, expected operational by 2026, exemplifies the hub model. Four industrial partners—Air Liquide, Air Products, ExxonMobil, and Shell—will share pipeline infrastructure to transport approximately 2.5 million tonnes of CO₂ annually to depleted gas fields beneath the North Sea. Shared infrastructure reduces per-tonne costs by an estimated 30-40% compared to point-to-point systems. Similar clusters are advancing in Antwerp, Teesside, and the Humber region.

Geological storage characterization has matured significantly. European regulators now have access to detailed storage capacity assessments for North Sea formations, with proven capacity exceeding 300 gigatonnes of CO₂. The EU CCS Directive, updated in 2024, established clearer permitting pathways and liability transfer mechanisms. Storage operators can transfer long-term stewardship to member states after a 20-year monitoring period, resolving a critical bankability concern that previously deterred investment.

Revenue stacking is enabling viable business models. Leading CCUS projects combine multiple revenue streams: EU ETS compliance value, Article 6 international carbon credits, 45Q-style tax credits in partner jurisdictions, and premiums from buyers seeking verified carbon removal. Heidelberg Materials' Brevik facility in Norway, capturing CO₂ from cement production, exemplifies this approach—combining EU Innovation Fund grants, Norwegian government support, and forward sales of carbon removal credits to corporate buyers.

What Isn't Working

Energy penalty economics remain punishing for most applications. Amine-based post-combustion capture imposes 25-40% energy penalties on power generation, rendering coal-fired CCUS economically irrational in European markets where renewable generation costs have collapsed. Even for natural gas power with carbon capture, levelized costs exceed €80/MWh—roughly double unabated combined-cycle gas turbines and significantly above wind and solar. This fundamental disadvantage has stalled power sector CCUS deployment, with only Boundary Dam-scale demonstrations rather than commercial rollout.

Solvent degradation creates underappreciated operational challenges. Amine solvents—the workhorse chemistry for post-combustion capture—degrade through oxidation and thermal breakdown, generating toxic byproducts requiring hazardous waste management. Degradation rates vary with flue gas composition, requiring site-specific optimization that delays commissioning. At typical industrial sites, solvent replacement represents 15-25% of annual OPEX. While newer solvents and alternative capture technologies (solid sorbents, membranes) show promise in pilots, they haven't yet achieved commercial scale in European deployments.

Grid integration for variable renewable-powered capture remains unsolved. Running energy-intensive capture equipment on intermittent renewable power introduces operational complexity. Solvent-based systems perform poorly with rapid cycling, as thermal mass in regeneration columns creates response time lags. Battery storage can smooth shorter fluctuations but adds substantial CAPEX for the scale required. Most operational European facilities rely on baseload power or grid electricity, undermining lifecycle carbon accounting when grid intensity is high.

CO₂ purity specifications create costly bottlenecks. Different capture technologies and industrial sources produce CO₂ with varying contaminant levels (SOx, NOx, water, oxygen). Transport and storage infrastructure requires specific purity standards to prevent corrosion and ensure injection performance. Matching heterogeneous capture streams to shared infrastructure requires either costly purification at capture sites or expensive conditioning at hubs. These interface specifications consumed years of negotiation in the Northern Lights development.

Public acceptance remains fragile despite improved safety records. While operational storage sites show excellent containment—Sleipner has demonstrated >99.9% retention over 25 years—local opposition has halted or delayed projects in Germany, Netherlands, and Poland. The "NIMBY" dynamic intensifies when communities perceive CCUS as enabling continued fossil fuel extraction rather than genuine decarbonization. Transparent monitoring data and community benefit agreements have improved acceptance at Norwegian and UK sites, but European deployment still faces significant social license challenges.

Key Players

Established Leaders

Equinor operates as Europe's most experienced CCUS company, having managed the Sleipner and Snøhvit storage projects for decades. As the operator of Northern Lights, Equinor leads Europe's transition to commercial-scale storage infrastructure, with plans to expand capacity to 5 million tonnes annually by 2027.

Shell maintains significant CCUS positions through Northern Lights partnership and the Quest facility in Canada (technically outside Europe but informing European strategy). Shell's CANSOLV solvent technology is deployed in multiple European pilot projects, and the company provides technical services for industrial capture implementations.

TotalEnergies has committed €1 billion to CCUS development through 2030, with particular focus on French industrial clusters. The company partners in Northern Lights while developing additional storage capacity in the Lacq region of southwestern France.

Air Liquide brings industrial gas expertise to the CO₂ value chain, with established capabilities in capture, purification, and transport. The company participates in major European cluster projects including Porthos and the Antwerp@C initiative.

Heidelberg Materials (formerly HeidelbergCement) represents the cement industry's most aggressive CCUS deployment, with the Brevik facility capturing 400,000 tonnes annually starting in 2024—the world's first full-scale cement CCUS project.

Emerging Startups

Carbfix (Iceland) developed the mineral carbonation approach that converts captured CO₂ into stable carbonate minerals within basalt formations. The technology achieves permanent storage within two years rather than relying on caprock containment, and Carbfix now offers carbon storage as a service to European emitters.

Carbon Clean (UK) has developed modular, standardized capture systems targeting smaller industrial emitters previously below the economic threshold for CCUS. Their CycloneCC technology reduces both CAPEX and footprint compared to conventional designs.

Climeworks (Switzerland) leads European direct air capture development, operating the Orca and Mammoth facilities in Iceland. Though currently expensive (>€600/tonne), Climeworks' technology enables carbon removal independent of point-source emissions.

Storegga (UK) is developing the Acorn project in Scotland, combining blue hydrogen production with CO₂ storage in depleted North Sea gas fields. The project exemplifies private-sector infrastructure development with government support.

Deep Sky (operating in Europe and Canada) is advancing hub-based carbon removal facilities that aggregate multiple capture technologies with permanent geological storage, targeting cost reductions through scale and operational learning.

Key Investors & Funders

EU Innovation Fund represents Europe's primary CCUS funding mechanism, allocating over €3 billion to large-scale projects through 2025. Award criteria emphasize innovation, scalability, and greenhouse gas avoidance efficiency.

European Investment Bank (EIB) has structured project finance for Northern Lights, Porthos, and other major infrastructure. The EIB's willingness to accept construction risk and provide long tenors has proven essential for bankability.

Breakthrough Energy Ventures (Bill Gates' climate fund) has invested in multiple European CCUS companies including Carbon Clean and emerging DAC developers, providing growth capital for technology scale-up.

Aker Carbon Capture operates both as a technology provider and investor, taking equity positions in projects using its modular capture systems. Aker's partnership with Microsoft for carbon removal credits demonstrates corporate demand validation.

UK Infrastructure Bank supports British CCUS clusters including the East Coast Cluster and HyNet, providing public capital to derisk private investment in shared transport and storage assets.

Examples

1. Northern Lights (Norway) — Europe's first commercial CO₂ transport and storage infrastructure began operations in late 2024. Phase 1 capacity of 1.5 million tonnes annually receives CO₂ from industrial sources across Europe, transported by ship to Øygarden for injection into the Johansen formation 2,600 meters below the seabed. The project required €2.7 billion investment, with Norwegian government support covering ~80% of Phase 1 costs. Storage fees of approximately €50-70 per tonne demonstrate commercialization potential when infrastructure is amortized across multiple emitters. Early customers include Yara (fertilizer production in Netherlands), Heidelberg Materials (cement in Norway), and Ørsted (bioenergy with carbon capture in Denmark).

2. Heidelberg Materials Brevik (Norway) — The world's first full-scale cement CCUS project captures 400,000 tonnes of CO₂ annually from Norcem's Brevik cement plant, representing approximately 50% of the facility's emissions. Aker Carbon Capture supplied the amine-based system, which uses waste heat from cement production to reduce energy penalties. Total project cost reached €650 million, supported by €300 million from the EU Innovation Fund and Norwegian government grants. Captured CO₂ is liquefied and shipped to Northern Lights storage. The project demonstrates CCUS viability for cement—a sector with limited decarbonization alternatives—with capture costs around €100 per tonne expected to decline with operational learning.

3. Porthos (Netherlands, operational 2026) — The Port of Rotterdam CCS project will transport approximately 2.5 million tonnes of CO₂ annually from four industrial partners to depleted gas fields in the North Sea. The 30-kilometer onshore pipeline and 20-kilometer offshore pipeline connect the Botlek and Europoort industrial areas to P18-A storage platform. Total investment of €1.3 billion is supported by a €2.1 billion Dutch government subsidy covering the difference between project costs and EU ETS revenue over 15 years. Porthos exemplifies the hub approach: rather than financing standalone point-to-point systems, participants share infrastructure costs while maintaining operational independence.

Action Checklist

• Assess capture feasibility — Conduct detailed engineering studies of your facility's CO₂ streams, including concentration, purity, temperature, and flow variability to determine appropriate capture technology.

• Map transport options — Identify accessible CO₂ transport infrastructure (pipelines, shipping terminals) and evaluate connectivity costs to emerging European hubs such as Northern Lights, Porthos, or Antwerp@C.

• Model full-chain economics — Develop integrated financial models incorporating capture CAPEX/OPEX, transport fees, storage costs, and available revenue streams including EU ETS value, Innovation Fund grants, and carbon credit premiums.

• Evaluate grid integration requirements — Analyze electrical and thermal energy demands for prospective capture systems against facility power supply options, including renewable PPA opportunities and on-site DER potential.

• Engage regulatory pathways — Initiate permitting discussions with national competent authorities under the EU CCS Directive, understanding that lead times of 2-4 years are typical for facility modifications.

• Develop solvent management protocols — For amine-based systems, establish monitoring and replacement schedules accounting for degradation rates specific to your flue gas composition.

• Secure long-term offtake agreements — Begin negotiations with storage operators or hub developers for CO₂ offtake, recognizing that transport and storage capacity is becoming constrained in prime locations.

• Build internal capabilities — Invest in engineering and operational training for CCUS technologies, as skilled personnel constraints are emerging as deployment bottlenecks.

• Establish monitoring frameworks — Design measurement, reporting, and verification (MRV) systems compliant with EU ETS requirements and voluntary carbon market standards for captured and stored CO₂.

• Engage stakeholders proactively — Develop community engagement strategies that transparently communicate project benefits, safety measures, and long-term monitoring commitments.

FAQ

Q: What is the realistic cost range for CCUS in European industrial applications as of 2025? A: Costs vary significantly by application. Industrial processes with high-concentration CO₂ streams (hydrogen production, ammonia, ethanol) achieve capture costs of €30-50 per tonne. Lower-concentration sources (cement kilns at 15-25% CO₂) typically cost €60-100 per tonne. Power generation sits at €60-90 per tonne but faces stiff competition from renewables. Transport adds €5-20 per tonne depending on distance and mode (pipeline versus ship). Storage fees at established facilities range from €20-50 per tonne. All-in costs therefore span €55-170 per tonne, with cement and hydrogen near the lower end and power generation near the higher end. These costs are expected to decline 20-30% by 2030 as technology matures and infrastructure scales.

Q: How does solvent degradation affect CCUS operational economics? A: Solvent degradation represents a critical but often underestimated operational challenge. Amine solvents oxidize when exposed to oxygen in flue gas and thermally degrade during regeneration cycles. Degradation products include corrosive acids and carcinogenic nitrosamines, requiring careful management. Typical MEA (monoethanolamine) degradation rates of 0.5-2.0 kg per tonne of CO₂ captured translate to annual replacement costs of €3-8 per tonne of CO₂. More significantly, degradation can reduce capture efficiency over time, requiring solvent reclaiming or complete replacement. Advanced solvents with improved stability exist but carry higher initial costs. Best practice involves continuous monitoring of solvent health indicators and proactive reclaiming before performance deteriorates.

Q: Can CCUS facilities operate effectively on variable renewable power? A: Grid integration remains an active challenge. Solvent-based capture systems have significant thermal mass and operate most efficiently at steady state. Rapid cycling degrades solvents faster and reduces capture rates. Current solutions include: (1) oversizing capture capacity to maintain output during reduced power availability, (2) integrating battery storage for short-duration smoothing, (3) using thermal storage to buffer regeneration energy, and (4) operating capture as flexible load—reducing capture during high electricity prices and increasing during low-price periods. This latter approach sacrifices some capture efficiency for improved economics. DAC systems face similar challenges but may prove more amenable to flexible operation as they don't depend on continuous industrial processes. Optimal grid integration strategies remain project-specific and technology-dependent.

Q: What happens to stored CO₂ in the very long term—centuries to millennia? A: Geological storage in properly characterized formations achieves effectively permanent containment. CO₂ injected into depleted oil and gas fields or saline aquifers is trapped through four mechanisms that strengthen over time: structural trapping (impermeable caprock prevents upward migration), residual trapping (CO₂ becomes immobilized in pore spaces), solubility trapping (CO₂ dissolves into formation water), and mineral trapping (CO₂ reacts to form stable carbonate minerals). The Sleipner project has monitored storage over 25 years with no detectable leakage. Modeling suggests that within 1,000 years, over 95% of injected CO₂ becomes immobilized through solubility and mineral trapping, eliminating structural trapping dependency. The EU CCS Directive requires operators to monitor storage sites for 20 years post-injection before transferring liability to member states, who assume long-term stewardship responsibility.

Q: How do CCUS projects stack revenues to achieve financial viability? A: Successful CCUS business models combine multiple value streams. Primary sources include: (1) EU ETS compliance value—avoiding the need to purchase allowances worth €80+ per tonne, (2) government grants—EU Innovation Fund awards covering 30-60% of CAPEX for qualifying projects, (3) national support schemes—the Netherlands' SDE++ and UK's CCUS business models provide operating support, (4) voluntary carbon market premiums—corporate buyers pay €100-200+ per tonne for verified carbon removal, and (5) enhanced oil recovery revenue (where applicable, though declining in Europe). Some projects additionally generate revenue from CO₂ utilization in products, though volumes remain limited. The most viable projects layer multiple sources—for example, Heidelberg Materials combines Innovation Fund grants, Norwegian government support, ETS savings, and forward sales of carbon removal credits to technology companies seeking high-quality offsets.

Sources

• International Energy Agency. (2024). CCUS in Clean Energy Transitions. IEA, Paris. https://www.iea.org/reports/ccus-in-clean-energy-transitions

• European Commission. (2024). Industrial Carbon Management Strategy. COM(2024) 62 final. Brussels.

• Northern Lights JV. (2025). Annual Report 2024: Commercial Operations Launch. Øygarden, Norway.

• Global CCS Institute. (2024). Global Status of CCS Report 2024. Melbourne.

• Equinor. (2024). Sleipner: 25 Years of CO₂ Storage. Technical Summary. Stavanger.

• Zero Emissions Platform. (2025). The Role of CCUS in Reaching EU Climate Targets. Brussels.

• Heidelberg Materials. (2024). Brevik CCS Project: First Year Operational Results. Heidelberg.

• IPCC. (2023). Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report. Geneva.