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Can CCS Meet Europe’s Climate Targets? Three Troubled Projects Raise Doubts

The European Union is relying heavily on carbon capture and storage (CCS) to decarbonise its heavy industry. With targets of capturing 50 million tonnes of CO₂ per year by 2030, and 280 million tonnes by 2040, CCS is seen as a cornerstone of EU climate plans. However, scaling up from today’s limited infrastructure—just five operational projects capturing 2.7 million tonnes annually—is proving difficult, expensive, and politically risky.

CCS involves capturing CO₂ from industrial processes, liquefying it, and transporting it—via pipeline, truck, or ship—to underground storage sites such as depleted oil fields or saline aquifers. But a new investigation highlights serious challenges already facing three major CCS projects supported by the EU: Northern Lights (Norway), Pycasso (France), and Callisto (France–Italy).

Massive Costs and Slow Progress

The European Commission estimates that Europe may need up to 19,000 km of CO₂ pipelines by 2050, with overall costs reaching €140 billion. Despite over $83 billion (€73 billion) spent globally on CCS to date, the technology captured only 0.1% of global emissions in 2023.

In its latest round of climate funding, 40% of EU Innovation Fund money went to CCS-related projects. Critics warn that this one-track focus may come at the expense of more cost-effective options like renewable energy or industrial efficiency. For example, nearly all cement sector grants target CCS instead of process changes that could reduce emissions directly.

Project 1: Northern Lights – High Costs and Limited Capacity

Operated by Shell, TotalEnergies, and Equinor, Norway's Northern Lights project will begin by capturing and storing 1.5 million tonnes of CO₂ per year, initially from emitters like Yara, Ørsted, and Heidelberg Materials. But costs are steep: shipping and storing one tonne of CO₂ is estimated at €128. Yara alone may face annual CCS costs of up to €178 million for just one site.

Transport is another challenge. Only two specialised CO₂ ships are available, each carrying 8,000 tonnes per trip. Even with two more ships ordered, the project risks major delays due to weather or technical issues. Moreover, CO₂'s corrosive properties add operational complexity to every shipment.

Project 2: Callisto – Distance and Economics

Callisto aims to transport CO₂ from emitters in France and Italy to a storage site in the Adriatic Sea. But like Northern Lights, the high cost of infrastructure—pipelines, ships, ports—and low carbon prices make the business case shaky. At today's carbon price (~€80/tonne), companies may not find CCS financially viable without public subsidies or long-term price guarantees.

According to the European Commission's CCS adviser Roberto Bencini, transporting CO₂ over long distances from France to Italy would involve "prohibitive costs" under current market conditions.

Project 3: Pycasso – Local Opposition

Pycasso was a proposed storage project in France aiming to store CO₂ closer to where it was emitted, potentially reducing costs. However, it was abandoned in 2023 after strong local opposition. Critics said it would threaten 1,700 existing jobs while creating only 80 new ones.

Is CCS a Risky Bet?

Proponents argue that CCS needs more government support to become viable at scale. But critics warn that betting heavily on a still-unproven solution could delay urgent climate action. WWF, for instance, has cautioned that CCS should not be treated as a silver bullet.