Heidelberg Materials Stops German Carbon Capture Project

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

One ​of the world's largest cement makers, Heidelberg Materials, has paused the development of a major German carbon capture project over concerns about the transport network and government support.

Project Stopped

Heidelberg Materials, one ​of the world's biggest cement makers, has paused development on one of the largest carbon capture utilisation and storage (CCUS) projects in Germany at the Geseke cement plant. 

The company cited the lack of a solid business case to continue at the moment and it reflects a wider difficult time for carbon capture investment in Europe at the moment. The GeZero project at the Geseke plant in North Rhine-Westphalia would have transformed the plant into Germany's first inland cement plant with an industrial-scale carbon capture and storage solution. The goal is to capture 700,000 tonnes of CO2 per year using second-generation advanced oxyfuel technology, and store it permanently. This is equivalent to about 3.5% of the annual CO2 emissions of the German cement industry. According to Industrial Info Resources data, there are three key GeZero projects worth more than US$500 million in investment. 

Reasons for Pausing

The company pointed to insufficiently developed regional CO2 transport, storage infrastructure and commercial value chains as the primary reasons for hitting pause. Christoph Streicher, General Manager Germany: "The Geseke site remains of great importance to Heidelberg Materials. The current pause is a decision made after careful consideration, to successfully plan the next steps for the GeZero project in the long term under the right economic and regulatory conditions." Speaking to Reuters, chief executive officer, ​Dominik von Achten, added: "As a listed company, we will ​only pursue CO2 capture if we have a stable, sound business case for it. We do not ​yet have that in Geseke. "[It's] a tough but right decision." Operations at the rest of the plant will be unaffected. 

The Project

GeZero is aiming to use a new oxyfuel kiln combined with upstream oxygen (O2) production through an air separation unit (ASU). The purification (concentration) and liquefaction of the CO2 will take place in a cryogenic processing unit (CPU). It will be supported by rail loading and interim storage facilities, which will see the captured CO2 transported via train to a CO2 hub and from there to the final permanent storage site under the North Sea. This transport system is seen as a stopgap solution until a CO2 pipeline infrastructure is available. Power for the project will be met exclusively by renewable energy and a new solar farm will be constructed at the factory to help contribute. Heidelberg Materials plans to allow smaller emitters in the area to use its transportation system. The company leads the cement industry in carbon capture investment. It has been operating the world's first industrial-scale CCS facility in the cement industry in Brevik, Norway, since June 2025. A final investment decision for the Padeswood CCS project in the U.K. was taken in September 2025, and construction started in December. 

Hard Times for CCS

The Geseke project pause comes despite the project receiving 191 million euro (US$214 million) in financial support from the EU Innovation Fund. This summer, Industrial Info Resources reported that the carbon capture sector is facing declining investment. Last year, the volume of carbon capture capacity cancelled in Europe exceeded that reaching final investment decision (FID), according to research from the Institute for Energy Economics and Financial Analysis (IEEFA). It found that 5.4 million tonnes of carbon dioxide (MtCO2) of capture-related projects were cancelled, while only 4.2 MtCO2 of projects received investment approval. The largest project cancelled in 2025 was by oil and gas major BP, which spiked plans to build one of the U.K.'s largest blue hydrogen projects, H2Teesside. 

Related CCS Success

In September, European officials gathered to celebrate the commissioning of the world's first commercial cross-border CCS chain at Yara's Sluiskil fertiliser plant in the Netherlands. The plant, Europe's largest fertilizer plant, will capture and liquefy approximately 800,000 tonnes of carbon dioxide (CO2) annually from ammonia production. The liquefied CO2 will be stored temporarily at Sluiskil before it is collected by ships from the Northern Lights group, for injection into subsea reservoirs 2,600 meters beneath the seabed at Øygarden, near Bergen, in Norway. The Sluiskil project is expected to capture and store approximately 12 million tons of CO2 over 15 years. Industrial Info Resources data is tracking 438 carbon capture-related projects in Europe worth US$38 billion in investment.  

Key Takeaways

• Heidelberg Materials pauses US$500 million carbon capture utilisation and storage (CCUS) project at Geseke cement plant in Germany.
• It cited the lack of a solid business case, transport infrastructure and regulatory environment for its decision. 
• Industrial Info Resources data is tracking three key GeZero projects worth more than US$500 million in investment. 

About Industrial Info Resources
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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).