CCS Europe June Newsletter

June edition - web version

4 June, 2026

Another month, another roundup of the latest developments in CCS.

However, you may notice things look a little different this month. We've decided to give our monthly newsletter a change of scenery. From now on, you won't need to rummage through your inbox to read our thoughts. Instead, you'll find them here on LinkedIn.

But wait, there's more! We decided to introduce a new section to our newsletter - 'Director's View' - a short thought piece from our Director, Bergur, on the key developments which shaped the previous.

Now, onto the meat and potatoes, or capturing, storing and transporting, as we like to say it.

May was a bit quiet on the CCS front, but not without its highlights. The European Commission published its report on progress towards reaching the Union-wide target for CO₂ injection capacity, while also approving a €5 billion German state aid scheme to support the decarbonisation of German industry. On the report, our initial reading is that, while we are on track, more work will be needed to meet the NZIA storage obligations.

Meanwhile, we kept busy by welcoming a new member, Decahydron, and meeting with the Cabinets of Séjourné and Jørgensen.

As usual, this month's edition is approximately 1,000 words long, or around a seven-minute read. Read on! 👇

HEADLINE NEWS

 

📊 Commission confirms CCS storage target is within reach, but gaps remain. The Commission’s latest report on CO₂ injection capacity confirms that the 50 Mt target under the NZIA remains realistic and that CCS is essential for hard-to-abate sectors. It also underlines that storage capacity needs to be developed ahead of demand if Europe is to avoid future bottlenecks in industrial decarbonisation. While industrial demand for CO₂ storage is clearly emerging, the report highlights that the current project pipeline is still not sufficient to fully match it at the pace required.

According to the report, only 16 of 44 obligated entities have confirmed their contribution to assigned injection capacity, with several still relying on non-EU storage options that cannot be counted towards EU compliance. The findings also point to uneven implementation of Member State transparency obligations, leaving parts of the framework incomplete. In short: the direction of travel is clear, but faster implementation, stronger Member State oversight, and coordinated cross-border CO₂ infrastructure will be needed to properly connect rising demand with available storage capacity.

💶 Commission clears €5bn German push for industrial decarbonisation. The European Commission has approved a €5 billion German State aid scheme to support industrial decarbonisation across key heavy industry sectors. CCS is among the eligible technologies, alongside electrification, hydrogen, CCU, biomethane, and heat recovery and storage.

The scheme targets ETS-covered industries including cement, steel, chemicals, glass, ceramics and other energy-intensive materials, with support allocated through competitive bidding procedures. Projects are expected to deliver significant and sustained emissions reductions over time, rather than short-term efficiency gains alone. The measure reinforces the role of state aid as a central tool in scaling industrial decarbonisation across Europe, particularly in hard-to-abate sectors where abatement costs remain high.

🗣️The Commission discussed ETS with industry. The European Commission held a high-level stakeholder roundtable on the upcoming ETS revision bringing together industry, NGOs and think tanks to gather input ahead of the formal proposal publication. The discussion focused on the ETS timeline and broader policy alignment, including the role of the ETS as an investment and innovation tool for energy-intensive industries.

The Commission outlined key elements of the revision, including international credits to be used from 2036, the possible integration of carbon removals, recognition of temporary storage, adjustments to CCU accounting rules, and the future role of free allocation conditionalities and ETS revenues through the Industrial Decarbonisation Bank and Investment Booster. CCS was mentioned in the context of industrial decarbonisation discussions for energy-intensive sectors such as cement, steel and chemicals. Stakeholders also discussed how ETS design should support broader decarbonisation while balancing flexibility, competitiveness and climate integrity.

 

DIRECTOR'S VIEW

 

Welcome to “Director’s view”, a brand new section of our monthly newsletter. At the end of each month, our Director, Bergur Løkke Rasmussen, will reflect on the key developments from the previous month. This month, he reflects on the Commission’s report on CO₂ injection capacity:

The Commission’s report confirms that the NZIA 50 Mt CO₂ injection capacity target for 2030 remains realistic and achievable, and reinforces CCS as essential for decarbonising hard-to-abate sectors such as cement, lime and steel. It also shows that industrial demand for CO₂ storage is already emerging through national plans and Innovation Fund-supported projects.

At the same time, the report highlights a clear gap between demand and delivery. Only a limited number of obligated entities have confirmed their contribution to injection capacity, while Member State reporting under the NZIA remains incomplete. This underlines that storage and transport infrastructure is not yet developing at the pace required.

Cross-border CO₂ infrastructure is therefore key, with storage concentrated in the North Sea while demand is emerging across wider parts of Europe.

In short: CCS demand is real and growing, but delivery, infrastructure and implementation must now catch up.

-- Bergur Løkke Rasmussen Director, CCS Europe

To see Bergur's full thoughts on this, check out his latest blog.

 

OUR ACTIVITIES

 

🥳 We have a new member - Decahydron! A warm welcome to our newest CCS Europe member Decahydron, a company developing a dual approach to natural hydrogen production and CO₂ mineralisation. Decahydron uses ultramafic rock formations to extract naturally occurring hydrogen while simultaneously injecting CO₂ into the same geological formations to permanently store it as solid carbonate minerals, supporting long-term carbon storage and clean energy production. We are glad to have such an innovative company as part of CCS Europe!

🤝 We met the Cabinet of Jørgensen. As we announced last month, our efforts on the ground did not stop. Our first stop in the Berlaymont was the Cabinet of Commissioner Jørgensen where we discussed the development of a regulatory framework for CO₂ transport and storage, focusing on the need for a harmonised and predictable regulatory framework for CO₂ transport infrastructure, alongside clear cross-border rules and EU-level de-risking mechanisms to support early-stage deployment and deliver on NZIA objectives.

🚏Then we made a stop in Séjourné's Cabinet. With the team of Executive Vice-President Séjourné, we discussed the role of CCS as a key competitiveness tool for European industry, especially hard-to-abate industries. We highlighted the importance of creating lead markets for low-carbon products to drive demand for those products. We also talked about the IAA and how it can create stronger market incentives for low-carbon products and support the business case for industrial decarbonisation.

 

CCS DEVELOPMENTS FROM AROUND THE BLOC

🇳🇴 Norway advances CCS collaboration in the North Sea. Vår Energi CCS, Aker Solutions and Knutsen NYK Carbon Carriers have signed an MoU to develop the Trudvang CCS project, combining expertise in CO₂ transport, offshore infrastructure and storage. The project is expected to start with around 2 Mtpa injection capacity, with potential to scale beyond 20 Mtpa. The initiative supports the development of integrated CCS value chains in Europe and aligns with broader net-zero infrastructure goals under the NZIA. Learn more here.

📃 Linde and Valmet partner on electric CCS for pulp and paper. The collaboration aims to develop a capture solution powered by renewable electricity, combining Linde’s CCS technology with Valmet’s industrial expertise. The system targets one of Europe’s hard-to-abate sectors, which emitted around 22 Mt CO₂ in 2024. CCS is expected to complement electrification and efficiency measures in helping the industry reach long-term decarbonisation targets. Read about it here.

🏛️ Politecnico di Milano launches POLICAP mobile CCS lab. The transportable pilot facility will test solvent-based carbon capture technologies directly at industrial sites using real and synthetic flue gases. Funded under Italy’s NRRP through the ECCSELLENT project, it will evaluate solvents, materials and process configurations to improve efficiency and reduce costs. The initiative highlights the role of applied testing in scaling CCS deployment. See more here.
 

LOOKING AHEAD: JULY👀

🗣️ CCS is on DG CLIMA's agenda. Commissiner Hoekstra is convening an implementation dialogue with stakeholders on 29 June to discuss the barriers and enablers for scaling up CCS in Europe. With funding, permitting and public perception all on the table the discussion should offer a useful steer on where EU CCS policy goes next. You can bet we will be there as well! 😉

🇪🇺 After the dialogue, conference time. On 30 June, CCSA is hosting its EU Conference in Brussels, bringing together policymakers and industry for a day of panels and presentations on the future of CCS. Coming just after the Commission’s CCS implementation dialogue, it should offer a useful temperature check on where the sector sees momentum and where it still sees work to be done

🔥 The ETS debate is heating up. Despite the ETS’ goal of keeping temperatures down, the debate around it is getting hotter by the day. With Member States, MEPs and industry all drawing battle lines ahead of the 15 July revision publication, the next few weeks should give us a clearer sense of where the political fault lines really lie. The Commission is well aware of this, which is why today’s orientation debate in the College – and what comes out of it – will be one to watch.

That's all for May - see you all next month!