EU Reveals $3 Billion Fund for CCS Projects

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Union (EU) is getting ready to ramp up its investment in carbon capture and storage (CCS) projects with a new 3 billion-euro (US$3 billion) package of funding.

Energy Commissioner Kadri Simson announced the major funding boost at the recent Carbon Capture, Utilisation & Storage (CCUS) Forum, held in Oslo, Norway. It will more than double the previous investment, but Simpson admitted that while there is still a lot of opportunity in the sector, there is a lack of urgency to exploit it.

"I believe that CCUS has incredible potential in our race to reach climate neutrality...and without CCS and CCU, it will be practically impossible to limit global warming to the 1.5 degrees Celsius objective. European Commission (EC) modeling also shows that the EU will need to capture and utilize or store between 300 and 640 million tonnes of carbon dioxide (CO2) per year by 2050 to meet its climate goals. It's an opportunity we're not making the most of -- yet. This is for a number of reasons, mainly: funding, infrastructure and regulation."

She added: "Let's start with funding. This is the single most common issue I hear about from project developers. The scarcity of funding means no matter what good ideas are in place, without the right capital they won't get off the ground. At the same time, we can't forget that CCUS is not just one innovation but a family of technologies. And those technologies are still in development. This is why it is so important to have enough financial support for research, innovation and development. In the coming weeks we will launch another call for proposals under the Innovation Fund with a record budget of 3 billion euro (US$3 billion). This more than doubles the previously allocated amount."

Industrial Info is tracking 147 active CCS projects in Europe with an investment value in excess of 8 billion euro (US$8 billion). Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

The EC's Innovation Fund is the main funding vehicle for newer technologies. Out of the 24 large projects selected under the fund, 11 include either CCS or CCU, which Simpson said "is good news for the technology because it proves that there are many good, mature projects out there. I am also very glad to say that we see a number of Member States supporting CCUS. Denmark has already allocated 5 billion euro to CCUS projects. The Netherlands also continues to incentivise the technology. Belgium, Sweden, Croatia and Greece have all included CCS and CCU related investments in their national recovery plans. Things seem to be finally moving."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).