New and old CCS projects in Europe: What’s different this time?
This paper outlines the key changes in CCS projects compared to the previous investment cycle (2009-2015). It highlights what is different this time in terms of regulatory context and the development of new business models for CCS, making the case for CCS as a key component in reaching the EU’s long-term climate objectives.
- What’s different this time?
- Innovation in CCS business models: Single industrial emitter vs. hub and cluster-based projects
- Examples of hub and cluster-based CCS projects:
- The Rotterdam CCUS project Porthos and Northern Lights
- The Norwegian full-scale CCS project
- EU funding instruments
- Low carbon/clean hydrogen: Extending the climate benefits of CCS beyond the power sector
- Where can CCS make a difference?
CCS is a proven technology necessary to achieve climate neutrality in Europe in a cost-efficient manner, and to enable negative emissions. All ambitious scenarios (below 2°C) show that CCS will be essential to meeting the targets set by the Paris Agreement.
CCS technology is also critical for deployment of low-carbon hydrogen, as natural gas can be reformed to hydrogen with CCS, supporting decarbonisation of EU heating, transport and power generation sectors.
CCS is necessary for the decarbonisation of industry, representing a cost-effective and realistic way to avoid post-combustion and process emissions. It is a crucial technology to safeguard existing industrial activity, jobs and growth while decarbonising economic activity to meet the EU climate objectives.