CCS on the Decline in Europe

June 17, 2026

Source: E & M powernews

A report has examined carbon capture and storage (CCS) projects in Europe. The rapid boom is stalling.

If there was ever a CCS boom in Europe, it is already over—as of today. This is according to the Institute for Energy Economics and Financial Analysis (IEEFA), an Ohio-based think tank that studies the economic impacts of energy and infrastructure projects.

The number of projects for the capture, transport, and storage of CO2 (Carbon Capture and Storage, or CCS for short) is declining in Europe. The report also states that the number of new announcements has dropped significantly in recent years, while at the same time more projects have been scrapped.

According to the IEEFA, a total of 317 European CCS projects were announced between 2018 and 2023. These were driven by European climate targets, rising CO2 prices in the EU Emissions Trading System, and numerous support programs at the European and national levels.

The number of new CCS projects peaked in 2021 with 100 announcements. By 2025, only 24 new projects were registered. The decline was even more pronounced in terms of planned CO2 capture volumes. According to the IEEFA, these fell from 52 million metric tons of CO2 in 2021 to just 7 million metric tons of CO2 in 2025.

“The number of new CCS projects in Europe has declined significantly over the past three years,” writes IEEFA analyst Andrew Reid. This trend raises the question of whether CCS can be deployed on the scale required by European decarbonization strategies.

Among the most prominent canceled projects are the “H2Teesside” hydrogen project in the United Kingdom, with a planned 2 million metric tons of captured CO₂, and “H2M Eemshaven” (1.8 million metric tons of CO₂) in the Netherlands. The project developers cited weak demand for hydrogen, planning problems, and uncertain funding conditions, among other reasons.

According to the IEEFA’s assessment, the economic hurdles also remain significant. The costs for CO2 capture, transport, and storage range from 133 to 244 U.S. dollars per metric ton of CO2, depending on the application. This significantly exceeds the current CO2 price of 80 euros per metric ton in the European Emissions Trading System. Without additional government support, many industrial companies lack the economic incentives to invest in CCS.

Reid points out that CCS could certainly play a role in Europe. Especially for cement and lime producers, as well as the chemical and waste management industries, the technology continues to be seen as an important building block for reducing emissions that are difficult to avoid. However, current developments show that the ramp-up is proceeding more slowly than many policy strategies have assumed so far.

Author: Stefan Sagmeister