Carbon capture and storage (CCS) underpins the European Union’s (EU) strategy to decarbonise industries such as cement, steel, and chemicals. It involves capturing carbon dioxide (CO2) from industrial facilities, transporting it by pipeline or shipping and storing it permanently in geological formations. According to the European Commission this technology that captures emissions at their source to prevent them from escaping into the atmosphere is a crucial part of the carbon phaseout pathways for many EU countries.

It consists of three consecutive steps: (i) industrial emitters “capture” their carbon dioxide emissions by separating them from the rest of the flue gas; (ii) the CO2 is then transported, generally by ship or pipeline, to a geological storage site; and (iii) the emissions are permanently stored underground.

Under the EU Net-Zero Industry Act, at least 50 million tonnes of annual CO2 injection capacity must be in place by 2030. The European Commission estimates that the EU will need to store around 250 million tonnes of CO₂ each year by 2040.

Meeting these targets requires capture facilities, transport pipelines, and storage sites to be developed in unison. For pipeline investment, large upfront costs need to be incurred before future CO2 volumes and revenues are certain. Yet industrial emitters hesitate to invest in carbon capture without reliable transport and storage, while pipeline operators need commitments from industrial facility users before construction can begin. Transport pipelines, shipping terminals, and storage sites may also be underused during the market’s early years. Delays in building any part of the chain can prevent the others........

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